Marianas Variety Guam Edition – The Local and Regional Newspaper

Thank you for reading the Marianas Variety-Guam Edition, your local and regional newspaper. Kindly note that effective August 1, 2014, the Marianas Variety-Guam Edition will move to a metered system f...read more

12 23Sun07272014

Settings

Font Size

Back Local News GMH outlines plans for Compact Impact funds

GMH outlines plans for Compact Impact funds

  • PDF

ABOUT $1 million of the $6 million Compact Impact funding awarded to Guam Memorial Hospital will go toward the creation of new parking spaces and completion of other capital improvement projects.

Some $200,000 will go to adding about 90 parking spaces on the hospital’s property.

In a status update hearing Wednesday at the Legislature, Guam Memorial Hospital Chief Financial Officer Alan Ulrich said although a majority of the Compact Impact funds will be going to pay off vendors, “we thought it prudent that some of it be reserved for something that would have future value.”

The hospital will also be purchasing a new ultrasound machine for the Intensive Care Unit at $140,000, developing a redundancy system for clinical software at $100,000, and purchasing two sterilizers at $400,000.

A total of $5 million in Compact Impact funds was used to pay off vendors. However, GMH still faces a huge debt. Estimates have pegged the debt amount at $22 million.

Ulrich told senators during the hearing that the hospital has an imbedded cost of vendors requiring payments, including interest.

One such vendor is Perry Point, a medical supply distributor that is owed $5.3 million. GMH must pay $50,000 a month in interest to this company. Last year, the vendor gave the hospital 60 days to pay off its debt or it would tap into Medicaid funding.

To begin to address financial issues, Ulrich said GMH will be submitting a budget of more than $100 million for fiscal year 2014. At a hearing late last year, Ulrich and GMH Administrator Joseph Verga revealed that the FY2013 budget had been erroneously prepared, understating the funds needed to operate the hospital.

Please review the User Content Posting Rules
comments powered by Disqus