LBJ Urged to Seek Bond Money to Fix Cash Flow

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During review of the use of proceeds from the sale of the American Samoa Economic Development Authority bonds, several senators had recommended that some of the bond earnings be used to prop up the LBJ Hospital.

The suggestions came as the hospital was in the news for an acute shortage of basic supplies like bandages, syringes and even ingredients for IVs.

Nurses reported that the hospital was using bed sheets as bandages and trash bags as mattress covers.

Latest reports from LBJ indicate that the situation is still serious and the Infection Control Committee made an appeal to businesses and organizations for help in providing bed sheets, covers, towels and the like.

During the House Health Committee hearing on hospital finances this week, Representative Larry Sanitoa suggested to LBJ officials to request money from the bond sales to alleviate the hospital’s cash problems. –

Sanitoa informed LBJ CEO Taufete’e John Faumuina Jr., Chief Financial Officer Pauline Gebauer and Board Chairman,Filifa’atali M Fuiava, that from research  he and his colleagues have carried out, they’ve learned that using the Series B and C bond proceeds for the hospital is allowable.

He said only the A series bond  has restrictions, but the other two can be used  to some extent and it wouldn’t hurt to ask ASEDA  for monetary  help to alleviate LBJ’s dire financial situation.

(Larry bond $$ for LBJ)

Sanitoa also suggested that the hospital make use of the governor’s latest task force, the LBJ Assessment Operation Task Force, led by Utu Abe Malae to request funding to pay down the hospital’s debts.

LBJ CEO Taufete’e testified  that the hospital is trying to use any money it gets to pay off debts especially with off-island vendors of pharmaceuticals and medical supplies.

He’s concerned that if there’s a local emergency, off island vendors may not ready  provide needed supplies because of LBJ’s IOU.

Vice Speaker Fetu Fetui Jr., said the House stands ready  to introduce an appropriation measure to help the hospital bill should the Governor and the newly appointed task force see the need for it.  As we reported yesterday a n LBJ hospital report shows ASG’s IOU to the hospital in unpaid monthly subsidies and the 2% wage tax is hovering pveinrg at $6.2 million.  And the Ioui;s form patients , Medicare, Tricare and ASG covered patients is $4.4 million.

 

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