Tempers flare in hospital oversight hearing amid budget shortfall

The Guam Memorial Hospital is already millions of dollars in the red going into the new fiscal year on top of a  budget shortfall threatening to shut down services. 

Despite last year’s $30 million bailout, Chief Financial Officer Yuka Hechanova told senators they’re still behind on vendor payments during an oversight hearing Monday. 

“We’re $15 million in the hole already entering the fiscal year, what’s going to pay for that,” said Hechanova. 

Hospital Administrator Lillian Posadas admitted it can cause a supply shortage. 

“To be honest and truthful, we do have shortages when we are behind paying the vendors. Then they don’t deliver the supplies or they limit us,” said Posadas. 

GMHA Board of Trustees member Dr. Teresa Borja reminded senators the public hospital received only about half of their $74.3 million budget request. 

“What do you want us to do? You want a walkout of all our people? How much more do you think we can take,” asked Borja. 

Since then, GMH leadership have been figuring out ways to cut down on expenses and increase revenue, like cutting personnel to include travel nurses and an amnesty period for self pay patients. 

But they’re still facing a $24 million shortfall. 

GMH asked Senators for $20 Million supplemental funding that the Governor is also advocating for. 

“We really need the $20 million. With our projected revenues right now, it would really only be enough to cover payroll but not even enough to cover the doctors’ pay,” said Hechanova. 

Speaker Therese Terlaje questioned if that would be enough. 

Spkr. Therese Terlaje: So the shortfall $24 million does not include the vendor payable? 

Chief Financial Officer Yuka Hechanova: No it does not. It’s really just for the fiscal year– the 12 months. 

Terlaje: Does the governor know that? 

Hospital Administrator Lillian Posadas: I haven’t had a chance to sit and talk with the governor. 

Terlaje: Okay because she’s also only advocating for $20 million.

Tempers flared as Senator Frank Blas Jr. pointed the finger to the administration. 

“I know, we understand your plight. We understand it. And when the speaker talks about the mixed messaging, when you come to us and say we need $74 million and we’re looking at the Governor’s budget and it doesn't reflect that, where’s the priority,” said Blas