GMH CFO Orders Staff Not To Release Delinquent Account Listing

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The Guam Memorial Hospital was responding to PNC’s Freedom of Information Act request that we sent on February 22.

Guam – Although the Guam Memorial Hospital finally responded to PNC’s Freedom of Information Act request that was 10 days overdue, the hospital did not provide all the documents we requested.

 

 

In particular, GMH refused to provide a list of all the vendors they owe, how much is owed and the age of the payables. The reason they gave us? Because their CFO Benita Manglona ordered them not to.

It took nearly a month, but GMH finally responded to a FOIA we sent them on February 25. We visited them first on March 22 where we were told that the documents were not available. Finally, today, we were able to pick the documents up.

 

We asked for four things: list of all vendors who have put GMH on credit hold since December; any and all communication from vendors threatening to put GMH on credit hold since October; total outstanding amount owed by GMH to all its vendors; and finally a list of all vendor payables and the amounts owed broken down by how many days past due.

GMH agreed to provide documents related to two of our requests, but for the list of all vendors who put the hospital on credit hold, GMH said the list doesn’t exist. As far as a list of all vendors and how much they owe to each, GMH refused to provide the list saying they were ordered not to provide it by their CFO Benita Manglona.

 

So here’s a look at what they did provide to us:

On March 11, Manglona received a letter from the hospital’s director of pharmacy and pharmaceutical buyer notifying her that close to a quarter of their pharmaceuticals was out of stock because of credit holds. They listed a total of 19 vendors, 8 of which placed GMH on credit hold, meaning they will not release supplies until the account is cleared; and 6 of which were pending credit hold, in other words they’re close to reaching credit hold. At least three of the vendors were owed over a million dollars each with a total pharmaceuticals balance of about $5 million.

 

GMH also provided us with copies of several letters sent to them between October 2015 and March 2016 in which several vendors refused to process purchase orders or ship supplies because of delinquencies in their accounts.

Some of the more recent ones are from Henry Schein Lab Team on March 10 which states, “Please accept our NO BID on these items. Your account is on hold and we are unable to provide pricing until the account is current.”

The company was responding to an urgent need  for medical supplies. Another email from the same company on about a month earlier in which they also issue a no bid, saying, “Your account is in collections. Our credit department has no patience when it comes to receiving payments.”

Then, an email correspondence as recently as last week in which GMH is notified that despite urgently needing supplies for their laboratory, the vendor has refused to release the supplies unless payment is made.

GMH’s current outstanding debt owed to vendors as of March 22 is $25.9 million.