GMH declines to renew TakeCare contract, citing recurring late payments

By Pacific Island Times News Staff

Guam Memorial Hospital has decided not to renew its expiring contract with TakeCare Insurance Co. due to the company’s recurring delinquencies, the hospital administration announced this week.

For several years, GMH said, it has repeatedly asked TakeCare to follow the terms of the current agreement, especially the requirement to make timely processing of claims and payment for patient care.

“Despite reminders, multiple demands from GMHA, and even settlement agreements, TakeCare failed to meet its contractual obligations,” GMH said.

Officials said the problem with TakeCare has been a recurring issue.

“Instead of continuing these disagreements with TakeCare, GMH made a critical business decision to end its contract with TakeCare upon expiration of the current contract term,” GMH said.

The contract will expire Oct. 31 and GMH will no longer be part of TakeCare’s provider network starting Nov. 1.

“We encourage TakeCare members to reach out to their insurer as soon as possible to understand their options,” said interim hospital administrator and CEO Dr. Joleen M. Aguon. “GMH will continue to welcome all patients and provide the necessary care.”

Patients with TakeCare insurance will be considered “self-pay” when receiving care at GMH, which means they will be responsible for payments to GMH and will need to seek reimbursement directly with TakeCare.

“We understand this causes concern for TakeCare members and their families,” GMH said.“GMH is committed to providing care to everyone in our community. However, we also have duty to ensure the hospital has the resources it needs to serve the public.”

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