Guam – For the second year straight, Guam Memorial Hospital Authority (GMHA) is the first Government of Guam agency to issue its audited
financial statements for the preceding fiscal year – maintaining a record it set last year by being the first agency to release its 2009 audit. GMHA’s
2010 financial audit, released today by the Guam Office of Public Accountability, received an unqualified or “clean” opinion by independent
auditors Deloitte & Touche for the fourth consecutive year.
The audit included 4 findings, equal to last year and down from a high of 45 in fiscal 2003. Highlights of the fiscal year include:
* GMHA operated under-budget for fiscal 2010 – total cash expenditures for the fiscal year were $99,859,804; $132,046 less than the $99,991,850
*Although gross patient revenues – the amount billed for patient care – increased $4 million from fiscal 2009, net patient receipts – the amount
actually collected by the hospital – dropped by $9.08 million. This includes a $3.37 million drop in revenue from uninsured “self pay” patients. Revenues from Medicare, Medicaid and MIP patients also declined, while revenues collected from patients with private insurance remained stagnant.
* The Hospital saw a 27% annual increase in the number of uninsured “self pay” patients. The number of these uninsured self-pay patients
reporting themselves as unemployed to Hospital registration staff showed an increase of 76% between fiscal 2009 and fiscal 2010.
* The Hospital recorded deferred revenue of $2.6 million for fiscal 2010. This represents billings for medical treatment that were provided to
clients of various Government of Guam agencies that have remained unpaid.
* In fiscal 2010, GMHA lost $9.95 million in uncollected revenue due to Public Law 29-132, which allowed the Government of Guam to use the Guam
Pharmaceutical Fund – previously a subsidy to help the hospital purchase medications and other critical supplies – to pay for the care of Medicaid
and MIP patients. Enacted in early 2009, this law also cost the Hospital $7 million in fiscal 2009 by essentially ceasing two funding sources from the
government. P.L. 29-132 was for the most part reversed with the budget law enacted for the current fiscal year.
* The Hospital recorded an annual increase in unpaid accounts payable, both trade and payroll, of 73% at the end of fiscal 2010.