CHCC total revenue $6.8M, while total expenses $9.1M

For the months of October, November, and December 2014, the Commonwealth Healthcare Corp. had $6.84 million in total revenue or cash received, but had $9.12 million in total expenditures, leaving a net deficit of $2.28 million.

CHCC explained its revenues, expenses, and net assets for the three months last year as well as the September 2014 financial statements at yesterday’s hearing in Superior Court.

The hearing was about the Commonwealth Utilities Corp.’s motion asking the court to hold CHCC in contempt for allegedly ignoring a $1.3-million bill for utility services for three months. CUC counsel James Sirok alleged that the non-payment caused CHCC’s total overdue balance to balloon to $14.7 million.

Sirok summoned CHCC and its CEO, Esther Muna, to appear at the hearing and produce a listing of all expenses paid by CHCC for October, November, and December 2014. He also asked for monthly income and expense sheets and the financial statement for CHCC for 2014.

Assistant attorney general David Lochabay, counsel for CHCC, submitted the requested documents and called to the witness stand acting CFO Cora Ada to explain the documents.

Ada will continue her testimony on Tuesday at 9am.

Associate Judge David A. Wiseman pointed to a summary list for October to December 2014 about IT&E phone bills amounting to $37,946.14.

Ada said the phone bills include Tinian and Rota and for 25 cellphones. She said CHCC is spending $10,000 to $12,000 a month on phone bills.

Ada also testified that for the three-month period, CHCC’s grand total of actual payment for several vendors and persons was $3.32 million.

Lochabay pointed out that CHCC did not pay its CUC bills for October, November, and December in 2014 and in January 2015 because the past due vendor accounts could not be delayed any longer.

The lawyer said the vendor accounts that were paid in those four months were all for reasonable and necessary expenses for the safe operation of the hospital and the Public Health Division.

At the May 9, 2014, hearing, Wiseman ordered CHCC to remain current with its monthly billings beginning June 1, 2014, or risk contempt or disconnection of non-essential CHCC utility services.

CUC sued CHCC in December 2013 to collect utility services in the amount of $9.7 million, together with pre-judgment interest.