Barely three months after its takeover of the Department of Public Health, the Commonwealth Healthcare Corp. is already expected to incur an estimated shortfall of $15 million by the end of fiscal year 2012.<\/p>\n
This was one of the reasons why his administration awarded the healthcare corporation a government lot in an effort to boost its revenue generating efforts and sustain its operations, said Gov. Benigno R. Fitial.<\/p>\n
The corporation was appropriated only $5 million seed money this fiscal year. Corporation chief executive officer Juan N. Babauta described this amount as \u201cunrealistic\u201d compared to what DPH used to receive.<\/p>\n
\u201cThe shortfall started even before the budget law was passed. The $5 million given to the corporation is a far cry from DPH\u2019s operating budget of nearly $28 million. The corporation, since Day 1, is already in deficit,\u201d Babauta said yesterday.<\/p>\n
Last week the corporation submitted to the Legislature a $38.5-million supplemental budget request for fiscal year 2012. This submission was boosted by the corporation\u2019s desire to tap the $18 million \u201cidentified resources from the hospital\u201d that have was not appropriated by the Legislature in the budget law.<\/p>\n
Babauta conceded yesterday that the $38.5 million supplemental budget may not pass the Legislature at this time because of limited government resources.<\/p>\n
\u201cObviously, the Legislature is not going to pass it [$38.5 million]. But that budget is reflective of what it is now. We are going to go through [with the Legislature] on this budget proposal item-by-item to see where we can make the cuts across the board to make it realistic,\u201d he said.<\/p>\n
Records obtained by Saipan Tribune show that the corporation\u2019s $38.5 million supplemental submission include the following projected costs: <\/p>\n
-$24.6 million personnel cost for 599 positions; <\/p>\n
-$8.4 million for hospital supplies;<\/p>\n
-$775,798 for professional services; <\/p>\n
-$345,456 for office expenses;<\/p>\n
-$33,600 for rentals;<\/p>\n
-$3.8 million for repairs and maintenance and others; and <\/p>\n
-$308,000 for travel.<\/p>\n
Babauta said the healthcare corporation could lower the $38.5-million budget proposal to $25 million. \u201cThe realistic budget is somewhere around $25 million to $26 million and we\u2019re going to work on this figure.\u201d<\/p>\n
There\u2019s also a big possibility, he said, that their current workforce of over 600 will be cut after a review of all units and sections at the hospital.<\/p>\n
He said the corporation may eliminate or terminate a specific service at CHC to avert incurring huge deficits within the fiscal year. <\/p>\n
\u201cWe hate to do that, but financially, we cannot carry that burden anymore. We cannot continue to operate in deficit,\u201d added Babauta.<\/p>\n
[B]MPLT help[\/B]<\/p>\n
Fitial expressed support for the idea of providing a $10 million credit line for the healthcare corporation from the Marianas Public Land Trust. A bill on this effort has been recently filed at the House of Representatives.<\/p>\n
The law that established the corporation allows the organization to borrow money, guaranteed by the government. <\/p>\n
\u201cWe\u2019re also asking a letter of credit from MPLT so it will provide short-term requirement to the corporation,\u201d said Fitial, adding that the awarding of the Navy Hill property and the MPLT credit line will help the organization address its serious financial concerns.<\/p>\n","protected":false},"excerpt":{"rendered":"
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