The Commonwealth Healthcare Corp. has requested Gov. Arnold I. Palacios to provide $4.45 million in supplemental funding for the remainder of fiscal year 2023 to support the costs of the former Medical Referral Program (now known as the Health Network Program) and for the immediate transfer of $292,666 to pay its vendors.<\/p>\n
In a letter to Palacios on Monday, CHCC chief executive officer Esther L. Mu\u00f1a also disclosed that, based on their analysis, the CNMI government has retained $4,115,492 of the $17,808,596 appropriations from Public Law 22-08 (the fiscal year 2022 budget law), and $217,924 from Rota Local Law 22-04 that was intended for CHCC.<\/p>\n
\u201cWe would like an accounting of the expenditures charged to that to ensure no obligation prior the date of transfer was charged to this account pursuant to Public Law 22-08 and Public Law 22-33,\u201d Mu\u00f1a said.<\/p>\n
She asked for the prompt transfer of the unused funds to CHCC, pursuant to the law that established the Health Network Program under CHCC (Public Law 22-33). Palacios signed the law on Jan. 31, 2023.<\/p>\n
Mu\u00f1a said the additional funding is needed to sustain the HNP operations. She said CHCC is dedicated to providing quality healthcare services to CNMI residents, and the HNP plays a crucial role in achieving that mission.<\/p>\n
Despite ongoing successes to expand health services access within the CNMI, Mu\u00f1a said there remain services that are not available within the Commonwealth. \u201cThe HNP bridges this gap for our income-eligible residents,\u201d she said.<\/p>\n
And while the HNP is a lifeline for many, Mu\u00f1a said the financial costs of this program is beginning to impede CHCC\u2019s responsibilities to providing care within CNMI itself.<\/p>\n
Mu\u00f1a noted that both Palacios and Lt. Gov. David M. Apatang may remember from their time in the 16th CNMI Legislature when they both voted in favor of CHCC\u2019s enabling legislation that there was an understanding among the members of the House of Representatives that, until the CNMI enacts a comprehensive healthcare financing system, \u201cCHC will continue to require governmental subsidy particularly for indigent care and medical referrals.\u201d<\/p>\n
Mu\u00f1a noted that, from 2018 to 2020, the average annual deficit of the Medical Referral Program was more than $9.8 million. Yet since the transfer of the Medical Referral program to CHCC, they have been able to reduce expenditures by more than 30%, demonstrating their commitment to financial responsibility and efficiency, she said.<\/p>\n
\u201cDespite this progress, we still rely on public funds to keep the program operational,\u201d the CEO said.<\/p>\n
With understanding that the government\u2019s budget is limited, Mu\u00f1a said they are committed to ensuring that any additional funds will be used prudently and effectively to bring about tangible improvements to the healthcare system.<\/p>\n
Mu\u00f1a said that, pursuant to a provision of Public Law 22-33, the unexpended balances of appropriations, allocations, allotments and other funds available for the use of off-island Medical Referral Program on the date of the transfer shall be transmitted to CHCC.<\/p>\n
She said in the transfer of such funds, an amount may be reserved for the liquidation of obligations incurred prior to the handover.<\/p>\n
Mu\u00f1a said that pending the transfer of any unused funds from Public Law 22-08, CHCC having been appropriated only $1 from Public Law 22-22 (Fiscal Year 2023 Appropriations Act), it will now have to request Palacios and the Legislature for supplemental appropriation.<\/p>\n
Mu\u00f1a said the projected need of $4,450,507 will support the HNP offices on Saipan, Guam, and Hawaii, and the cost related to patient airfare, accommodation, ground transportation, and subsistence, from April 1 to Sept. 30, 2023.<\/p>\n
CHCC did not include in this projection medical evacuation requiring air ambulance and the cost of returning human remains.<\/p>\n
On the request for immediate transfer of $292,666, Mu\u00f1a said that, as of March 31, 2023, cumulative transfers to CHCC was $13,911,028, while medical travel reimbursements was $1,014,194, for a total of $14,925,222.<\/p>\n
With total expenditures of $15,217,888, this leaves CHCC $292,666 in deficit.<\/p>\n","protected":false},"excerpt":{"rendered":"
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