The Chairman of the Board of the LBJ Hospital, Leilua Mase Akapo, had informed Governor Lolo Moliga last month about the grave financial condition of LBJ Hospital.
He wrote in a letter to the governor, LBJ account payables are about $8 million and the Pharmacy Department has been told that in order to meet payroll, purchase of drugs must be curtailed.
As of December 28, the date of Leilua’s letter to the governor, ASG owed the hospital $1.1 million in monthly subsidies.
This amoujnt does not include proceeds from the 2% wage tax that the Fono approved for the LBJ.
The board chairman noted that ASG was also withholding payments from the federal government which lawfully can go only to LBJ.
Leilua reminded the governor that a few months ago the hospital was placed on notice by the Centers for Medicaid and Medicare Services of serious deficiencies, such that if immediate action is not taken, LBJ will lose its eligibility to receive Medicare and Medicaid funds.
He elaborated it had become a practice for Treasury to delay transfer to the hospital of Medicare and Medicaid entitlements from the federal government.
Leilua reminded the governor LBJ is required by law to provide essentially free health care to our people and to do so requires cutting edge medical staff and equipment.
The Medicare and Medicaid payments therefore are vital to carrying out this mandate.
The chairman saw fit to spell out in his letter to the governor , the language of the 2% wage tax law, earmarking monies for the hospital.
The law provides that after the $3 million loan from the Workmans Compensation Fund to ASG is paid off, 50% of the proceeds from the tax shall be transferred to the hospital operation and 50% shall be transferred to a separate special account of the hospital no later than the 5th day of each month and used to support the off island medical referral program.
The chairman wrote Lolo with all due respect it is unlawful for the Treasurer to withhold payment form LBJ of funds derived from the wage tax By not receiving the funds, LBJ is placed in a dire fiscal dilemma. On one hand the executive and Legislative branches expect top performance from LBJ and on the other hand funds vital for this purpose are withheld.
According to Leilua, LBJ is simply placed in the position of having to beg for money to which it is legally entitled an he declared,
“this cannot continue.”
He told the governor, “I sincerely hope that you as chief executive take immediate action to bring into lawful alignment LBJ’s entitlement under the wage tax law and its entitlements to Medicaid and Medicare payments.”
