ASG is still a long way from paying up what it supposedly owes the LBJ Hospital.
KHJ News has learned from medical and non medical staff that hospital supplies are still in short supply, and employee deductions for local and federal taxes and retirement benefits have not been paid up to date,
In response to our questions, LBJ CEO Taufetee John Faumuina Jr., says as of the beginning of March, ASG owes LBJ more than $6 million in monthly subsidy payments as well as the portion of the wage tax assigned by law to the hospital.
ASG is behind on subsidy payments for LBJ Hospital by $1.6 million and owes $4.6 million for the 2% wage tax.
Vendors of pharmaceuticals and hospital supplies now require payment up front before any orders are sent to the local hospital.
Freight forwarders have a similar policy.
Last week, the Nurses Association made an appeal to local women’s organizations and Congresswoman Aumua Amata to help provide linen for the hospital.
The CEO says the LBJ ‘s total current outstanding accounts payable is $8.4 million, $7.2 million for off island vendors and $1.2 million for local vendors.
The $8.4 million doesn’t include long term accounts payable for the American Samoa Power Authority and ASG of $1.5 million.
Taufetee says with the sporadic payment of the ASG subsidy which is now delayed for three months their off island vendors still require advance payments.
He says this makes it challenging to purchase medical supplies at a reasonable cost and it also limits LBJ’s inventory of supplies.
Pharmacy orders are prepaid weekly to ensure medications arrive via air freight and this delivery of medical medication is not hindered but is limited to a weekly supply purchasing routine.
The CEO says the ASG monthly subsidy is approximately 14% of the hospital’s total budgeted incoming revenue and the $1.6 million which ASG has not paid in three months equates to an estimated revenue shortfall of about 42%.
