GMH made a partial payment of $1.37 million to the retirement fund this week. But they still owe millions more for the defined benefits plan.
Guam – The Guam Memorial Hospital and the Government of Guam Retirement Fund are in discussions on ways to avoid litigation. The retirement fund board voted last month to take legal action against the hospital, but GMH was able to make a partial payment toward their balance this week.
While the Government of Guam Retirement Fund Board of Trustees voted on February 26 to take legal action against the Guam Memorial Hospital, it hasn’t happened yet. At the time of the vote, the hospital owed the retirement fund $4.5 million. GMH CFO Benita Manglona says they were able to make a payment on Tuesday of $1.37 million.
“This one was primarily for the defined contributions members. We cleared all of those that were outstanding and also some interest payments that we had to make,” explains Manglona.
However, she says no payments were made toward the defined benefits plan, which is the bulk of the amount GMH owes to the retirement fund.
Manglona says GMH managers have been meeting with retirement fund leadership to discuss ways to come to an agreement that would avert litigation. We spoke with GMH CEO PeterJohn Camacho to find out what he could tell us about those discussions.
“We did have an opportunity to meet with the director of the retirement fund and we discussed several options and I think what’s going to happen is that she’s going to bring that back to their board for them to review and then see where we move from there,” says Camacho.
We asked what options were discussed between GMH and the retirement fund, however Camacho could not disclose those details.
PNC also asked both the CFO and CEO what the current outstanding vendor payables is for GMH. This is what they told us.
“One of the things with accounts payables, we make a payment, it goes down then it comes right back up and it depends on the services. I don’t have that number for you right now,” says Camacho.
“The last time I checked that was about $26 million but that included the retirement fund liability. Who we have paid $1.37 [million] of that. But we continue to procure, we continue to pay whatever cash comes in,” explains Manglona, who noted that the outstanding vendor payable balance is roughly $25 million to $26 million.
The next board meeting for the GovGuam Retirement Fund will be held on March 25.