Leaders voice concerns over GMH public-private partnership proposal
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Solutions for Guam's only public hospital were sought, as a public hearing on Bill 13 was held at the Guam Congress Building today. The proposed legislation aims to establish a public-private partnership for the Guam Memorial Hospital. Speaking before senators, medical professionals, and economic agency CEOs and administrators shared their thoughts on the bill’s goal to uplift the island's only public hospital.
In her opening statement as bill author, Senator Therese Terlaje reaffirmed the urgency of the proposal, citing the financial struggles that continue to plague GMH. The proposed public-private partnership, she says, aims to enhance operations, improve efficiency, and provide stable funding for the hospital to avoid recurring financial crises.
GMH administrator Lillian Posadas testifies that while the hospital is not opposed to a public-private partnership, she has concerns about the bill’s structure. Citing the Organic Act of Guam, she argues that the responsibility for public health services belongs to the governor, and that shifting management authority through this bill could disrupt established governance.
Posadas commented, “The Legislative Branch has the authority and the duty to appropriate the adequate funds for the hospital. Procuring a private partnership corporation will undoubtedly cost more money.”
GMH chief medical officer Dr. Verrad Nyame also weighed-in, stating that PPPs can work in construction projects, but raised concerns about applying the model to healthcare management, noting, “For a PPP to manage healthcare, that is a new venture that has not been explored yet, but it is possible.”
He emphasized that the structure of the partnership needs clarity before it moves forward. “I think that needs to be fleshed out before we even begin to think about these partnerships," Dr. Nyame said.
Melanie Mendiola, administrator/CEO of the Guam Economic Development Authority, provides a broader perspective, noting that 700 rural hospitals across America are at risk of closure due to financial shortfalls. She explained, “Relative to this specific legislation, we like the intent of the legislation. GEDA likes PPPs. PPPs are the way of the future.”
While the public-private partnership model has gained support as a potential solution, lawmakers and stakeholders continue to debate its implementation and the potential impact on the future of Guam’s healthcare system.