June 8, 2025

Santos: Don’t use the poor as excuse

Senate Committee on Health and Welfare chair Sen. Teresita A. Santos (R-Rota) has advised the Commonwealth Healthcare Corp. management not to use the poor as an excuse in plans of establishing its own pharmacy.

CHCC chief executive officer Esther L. Muna is looking into no longer renewing PHI Pharmacy’s lease at the hospital, which is set to expire on Aug. 14 this year.

She plans to have CHCC take over the pharmaceutical needs of its patients where she is proposing that the CNMI apply under the United States government’s 340B Drug Pricing Discount Program.

The program, established in 1992, requires drug manufactures to provide outpatient drugs and other prescribed medicines to eligible healthcare organizations and entities at a considerably reduced price.

Muna said they began discussing the 340B Drug Discount program with representatives of the Office of Pharmacy Affairs, which is under the Department of Health and Human Services’ Human Resources and Services Administration.

“The conclusion of those discussions was that the only way for the CHCC’s outpatient clinics, with the exception of the Kagman Community Health Center, which is already eligible, would be to register these clinics as federally qualified health centers or ‘look-a-likes.’ This is a complex and daunting process with many requirements to fulfill,” said Muna in a letter to Committee vice chair Sen. Sixto K. Igisomar (R-Saipan).

“Fortunately though, very recently, the Office of Pharmacy Affairs advised the CHCC that we should apply during the next application period in July as a disproportionate share hospital. It was previously believed that the CHCC did not qualify for this status due to its location in a non-U.S. state and the CNMI’s ineligibility for the DSH funding adjustment.”

Muna said the CHCC would still attempt to register, using the DSH designation, to be a 340B covered entity thru HRSA when the registration period begins on July 2.

Santos, however, is suggesting otherwise and does not support CHCC’s plan to replace PHI Pharmacy with its own to assist low-income outpatients. “When government competes directly [against] private firms, the net result is chaos on several fronts especially when vital services are provided for our people and community.”

“In the first instance, it is highly doubtful the PHI Pharmacy has committed an gregarious failure in its contract or service to outpatient here. In fact, it is deafening that no one has complained of it service at both CHCC and its outlet in Dandan.”

She said that PHI has invested in the CNMI through employment and training of its local staff and suggested that CHCC should focus on improving their services instead. “We should not use the poor as an excuse to overlook the fact as the same are covered sufficiently by Medicaid.”

“To concoct a pharmacy by ousting a fully poised firm now in place would mean passing along another layer of costs to taxpayers unnecessarily. CHCC must focus on improving patient care and spend public funds where it counts—blankets, pillows, bed sheets, toiletries, and most importantly vital medical equipment.”

9 thoughts on “Santos: Don’t use the poor as excuse

  1. Government competing with private businesses is asinine in every sense of the word. How could private industry expand when its operations is instantly inhibited by a government organ that knows no bounds how much it could misuse public funds?

  2. Keep pharmacy service in private hands at CHC. More activities at CHC should be considered for outsourcing.

  3. In short, many years ago the CHC had it’s own Pharmacy and most of the time was not stocked adequately. Much like the hospital lab and other areas.
    CHC cannot even get it’s billings out after so many decades they do not need to get back into the Pharmacy..

    1. CHC used to be budgeted annually anywhere between $36 to $40 million. After it becoming a quasi-independent corporation, it was left with much less than half that amount and the politicos expected CHC to function and operate at its prior optimal level Given the example of Jesus turning water into wine at the wedding Cana, the miracle wouldn’t be possible, if there wasn’t any water around. To be expected to operate CHC at that optimal level, Muna did not get adequate seed money, she was left to fend for herself through tirelessly collect on those delinquent receivables which she did miraculously. So my point to hit home is this: Politicos stay out by not interfering in what Esther Muna is doing, she knows 99% better than the entire legislative members put together. NO MICRO MANAGING, PLEASE!

  4. Maybe someone has a vested interest in the present pharmacy? If there is a better, more affordable option it should be allowed to compete. Unfortunately, some are benefitting at the expense of the consumer. Competition, incase we forget, brings prices back to earth.

  5. To all POLITICIANS: Stay out of CHC operation and let Muna run it the way she learned the principles from the institution that specialized in the field of hospital administration. This message is ESPECIALLY addressed to you SENATOR TERESITA SANTOS. Yes, Muna has the POOR PEOPLE IN MIND, knowing how atrociously expensive it is to buy medication at PHI. Don’t dare MICRO-MANAGE CHC, since you certainly don’t know much about running an institution such as CHC

    1. i agree that our politician should stay away, but do support the idea of continuing the privatization of the pharmacy. Our government will only mismanage this critical function again.

  6. The issue reminds me of spouts about indigenous rights such that collectively we have Indigenous Affairs, Carolinian Affairs, Women’s Affairs, Community and Cultural Affairs, and other local affairs. But name one project undertaken together that improved the economic wellbeing of the indigenous people successfully. Must outgrow the adolescent view of everything is government.

  7. The majority of it’s patients are NOT indigent. In this case, indigent also means having no insurance. Yes the majority are low income, but MOST of them have Medicaid. Also, a 340B entity, if CHCC becomes one, can use a contract pharmacy like PHI to dispense those low cost drugs that Ester is trying to get. I heard PHI is currently trying to establish an indigent program to have many drugs offered for a low fixed cost.

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