Fiscal Review Committee formed to monitor Guam hospital's finances
By Pacific Island Times News Staff
Acting Gov. Joshua Tenorio has signed an executive order establishing a Fiscal Review Committee that will keep the Guam Memorial Hospital's financial condition on track.
“After discussing the issue with Gov. Lou Leon Guerrero, we believe this is one of the necessary steps to ensure fiscal stability at the Guam Memorial Hospital going forward," Tenorio said.
He said the creation of the committee is part of a three-pronged approach to improve conditions at GMH and ensure the hospital is able to provide the best services possible until a new hospital is constructed to replace our current, aged facility.
Earlier this week, the administration pledged $20 million in American Rescue Plan funding to assist GMH in maintaining its facility, specifically instituting much-needed, unfunded urgent structural repairs, the lt. governor said.
At the same time, he added, the administration vowed to work with the legislature to identify $30 million in local funds to pay vendors.
"Recently, Sen. Jesse Lujan introduced Bill 164-37, which aims to provide funding to GMH after hospital officials testified during a legislative oversight hearing that GMH has incurred an outstanding balance of approximately $26 million in unpaid vendor payables, supplies, travel nurses, contractors and utilities.," Tenorio said.
However, Tenorio said the language in Lujan’s bill "is not the proper language to effectuate this, prompting the Leon Guerrero-Tenorio fiscal team to proffer language that will appropriate $30 million to GMH to pay its vendors."
“I look forward to members of the Guam Legislature also providing a solution to help GMH pay for its large accounts payable," Tenorio said. "By working together, I am confident that we will stabilize the operations of our hospital and improve the outlook of the hospital for the future."
According to the governor's office, the committee will consist of financial experts from the executive branch to monitor vendor transactions, ensure proper documentation for vendor accounts, and facilitate the timely payment of vendor invoices.
This financial review entity will provide an independent appraisal of GMH’s financial situation to the governor and the necessary guidance to address the immediate concerns related to outstanding vendor payables while providing the data needed to assist GMH in its future financial operations.
This financial review committee will also be responsible for assessing and making recommendations to the governor regarding GMH project proposals for the allocation of $20 million in authorized ARP funds for repairs to the GMH hospital facility, including those procured on an emergency basis.
It also directs the GMH administrator and CEO to conduct emergency procurement as needed via the emergency procurement process.