Fire at Guam hospital fans the flames of budget debate and buck-passing
- Admin
- Aug 21
- 4 min read
Updated: Aug 22
By Mar-Vic Cagurangan
As Guam Memorial Hospital resumed normal operations on Wednesday following power fluctuations that led to an electrical fire, government leaders pointed their fingers at one another, each calling out the other to aid the public facility in distress.
Gov. Lou Leon Guerrero called on the legislature to “fund GMH now,” while Speaker Frank Blas Jr. and Sen. Sabrina Salas Matatane asked the administration to declare a state of emergency and tap into the American Rescue Plan and the Rainy Day funds to subsidize the hospital.
“The funding exists. The need is undeniable. But the silence is deafening,” the senators said in a letter addressed to Lt. Gov. Josh Tenorio.
“This is not just a crisis. It is a catastrophe warranting a state of emergency,” they added, reminding the governor of her campaign promise “to prioritize GMH and restore Guam’s healthcare system using all available resources.”
In response, Leon Guerrero said her administration has already “directed millions of dollars in American Rescue Plan funding to the hospital to address urgent needs.”
As for the Rainy Day reserve, the governor turned the tables on the senators, saying that only the legislature has the authority over its use.
“The legislature must decide whether to drain the Rainy Day fund to provide tax breaks for large businesses or instead maintain current revenues to support critical services like GMH,” Leon Guerrero said.
The GMH fire broke out on Tuesday at the height of budget talks at the legislature, where senators voted earlier this week to give the public hospital an additional $35 million for fiscal 2026.
“The speaker claims to care about GMH, but his proposed Republican budget tells a different story—less funding for GMH than last year and cuts to Medicaid access,” the governor said.
Sen. Therese Terlaje said the electrical fire at GMH was a “wakeup call” and “an urgent reminder of why the hospital’s FY2026 funding request must be met.”
GMH leaders earlier requested an additional $82 million, including $28 million for operations, $29 million for capital improvement projects, and $25 million to pay money owed to vendors.
Terlaje noted that before the fire incident, GMH leaders warned the legislature that the hospital’s 39-year-old electrical panel—long overdue for replacement—was “a single point of failure” that would warrant the hospital’s shutdown.
“The incident reinforces what GMH has told the legislature: critical upgrades cannot wait for a new hospital to be built,” Terlaje said. “The current budget still does not provide GMH with the resources needed to repair its deteriorating building.”
Senators earlier voted 9-6 to pass Matanane’s amendment redirecting $35 million to help fund the hospital’s capital improvement projects.
Matanane, chair of the health care committee, said the proposed $35 million allotment was initially intended to cover the debt service for the governor’s proposed new hospital project.
Terlaje voted against the amendment, pointing out that it proposes an allocation
from a ghost fund, thus “giving the hospital false hope instead of real solutions.”
Terlaje was able to pass two amendments: one providing an additional $7 million, and another ensuring GMH receives the full percentage of the business privilege tax earmarked for the hospital.
In Adelup, the governor is not pleased with how the budget process has been going so far.
“The legislature must decide whether to drain the Rainy Day Fund to provide tax breaks for large businesses or instead maintain current revenues to support critical services like GMH,” Leon Guerrero said.
She also argued that piecemeal appropriations for GMH provide only a short-term solution to a long-term problem.
The governor noted that GMH, "has been underfunded by the legislature for years, like a broken mirror, every new fix just expands the cracks."
“While ARP funding was critical to keeping GMH operational, we must acknowledge the problems we see today—crumbling walls, failing electrical systems, HVAC failures—are not the result of inaction," the governor said, "but rather the unavoidable reality of a facility that has far outlived its intended lifespan," Leon Guerrero said.
She maintains that building a new medical facility is “the real solution.”
Matanane said a new state-of-the-art medical facility may be an exciting prospect, but it is far beyond the horizon.
“That new hospital is five to seven years, possibly even 10 years from being realized,” she said. “We need to focus on the hospital we have now by investing in its improvement and stability.”
Terlaje underscored the need for the government to move forward with a public-private partnership that can bring in experienced hospital management to fast-track GMH repairs “with clear benchmarks and accountability.”
At noon on Wednesday, GMH administrator Lillian Perez-Posadas led a walkthrough with Lt. Gov. Joshua Tenorio and Matanane “to review the response efforts and ensure continued safety for patients, families and staff."
As part of post-incident assessments, inspectors surveyed the third-floor mechanical room, where an electrical component had sparked and emitted smoke.
On the fourth floor, they inspected the Pediatrics Unit, where an exhaust motor had burned out.
GMH officials said both areas have been evaluated, and no further hazards have been identified.
“We are confident that the hospital is safe for patients, families and visitors as we resume our regular operations,” said Rizaldy Tugade, associate administrator of operations.
In their letter to Tenorio after the visit, Blas and Matanane described the hospital’s condition as “catastrophic,” citing structural decay, electrical failures, fire hazards, HVAC shutdowns and dangerously depleted medical supplies.
“The very institution meant to heal our people is itself in need of resuscitation,” the legislators wrote. “This is not just a crisis. It is a catastrophe.”
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