The Guam Memorial Hospital Authority’s perennially poor financial condition is improving through a combination of increased collections, decreased payables, and some American Rescue Plan funding.
According to GMHA Chief Financial Officer Yuka Hechanova, the hospital has already received $7.3 million in American Rescue Plan funds from the Department of Administration.
“We used that to pay down our vendors, those sitting in the over 90-day bucket. So the money is gone. But it’s really helped our payables So here on the dashboard you’ll see payables at $14.2 million. That’s now down to about $5.5 million because we’ve been able to make a lot of payments,” Hechanova said during the last GMH board meeting.
Another factor in GMH’s improving finances is its improved cash situation and increased collections. Hechanova said their collections for August went up significantly to a little over $12 million and a lot of that has to do with the good work being done by GMHA consultants.
“Our consultants have really helped us tremendously in the collection arena so we had a good month for collections in August. We also had a very good month for September, although we’re not officially closed for September collections and are continuing to improve. So we’re very happy that we have the consultants on board. They’re very engaging. I mean they are sitting side by side with our people going through the process and helping us with so many things,” Hechanova said.
Although GMH’s fiscal year 2022 budget was already passed, Hechanova said GMH only got about $18 million, which is about $10 million less than last year.
“They included a provision in there for $1.2 million for the nurses, and that will also come out of our general fund. So, it didn’t really make much of a difference,” Hechanova said.
To compensate for the lower budget, Hechanova said they’ve been working on a lot of things with the Federal Emergency Management Agency (FEMA) to get some grant money to pay for overtime, laundry services, and other expenses.
“We’re also preparing another grant for the travel nurses. And that’s about it. The biggest news really is our improvement and increased collections that really helped us tremendously,” Hechanova said.