Healthcare Costs Drain Government Finances, Prompting Calls for Hospital Mergers

Under questioning about the timeliness of payments being made from central government to the territory's healthcare facilities, Finance Commissioner Kevin McCurdy says the Department of Finance continues to “prioritize hospitals” where the disbursement of monthly allotments is concerned.

“We are releasing allotments as cash becomes available for most of the hospitals,” Mr. McCurdy explained to Senator Clifford Joseph during Tuesday’s meeting of the Committee on Budget, Appropriations, and Finance. “We pay part allotments when we have to,” the finance commissioner added. Both the Juan F. Luis Hospital and Schneider Regional Medical Center struggle with uncompensated care, manage an unprecedented number of boarders, and have in the past failed to make necessary utility payments due to insufficient funds.

With no immediate solution to the problems of boarders and uncompensated care, perhaps, suggested Senator Joseph, it is time to consider “cutting costs.” He sought recommendations in that regard from Julio Rhymer, director of the Office of Management and Budget.

“There must be some hard decisions going forward,” Mr. Rhymer cautioned. He told lawmakers that in fact, “this body needs to make the legislative changes in order for those decisions to be made.”