GMH on Notice for Possible Medicare Garnishment

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GMH CEO Ted Lewis says GMH received a letter from Perry Point, a major federal government vendor, notifying the hospital that they must come up with a solution to pay their outstanding debt.

Guam – It’s been exactly a month since the start of the 2016 fiscal year but so far, according to PNC sources, the Guam Memorial Hospital has not yet received its fiscal year 2016 allotments for the month of October.

 

We asked GMH CEO Ted Lewis whether GMH has received any FY 16 allotments. This is what he told us.

“I do not know what we’ve received this month. I’d be surprised if we’ve received nothing. We may have received something,” Lewis said. “I think, typically, September, October sometimes even November–one fiscal year’s ending and another is starting. I’m learning historically that’s always a greater period of difficulty [to make payments].”

Lewis was unable to tell us how much GMH was expecting in FY16 allotments for the month of October from the Department of Administration and whether or not this allotment correlates to an outstanding debt with Perry Point.

Perry Point is a major federal government vendor that has, in the past, garnished the hospital’s Medicare reimbursement because GMH was behind on its payments.

“Currently we are behind with them. I don’t know the exact number. It may be, I wanna say, between a million and $1.4 million,” Lewis explained.

PNC: “But has Perry Point made any kind of indication that they would be garnishing Medicare reimbursements?”

“They did send us a letter within the last week or so that notified us that they were concerned and that we would need to work this out,”  Lewis told us.

PNC: “But no words, no threat of, ‘We’re gonna begin garnishing Medicare reimbursements?'”

“Well when you’re a vendor and you are dealing with large amount of sales and you’re account gets behind, you of course wanna use the tactic of suggesting that if the account isn’t paid that there won’t be service,” Lewis noted.

Back in August, PNC reported that the amount GMH owed to Perry Point was $1.1 million, but at the time, Perry Point had not warned GMH about possible Medicare garnishments.

Meanwhile, Lewis tells us that GMH was able to make payments to the GovGuam Retirement Fund of $500,000.

Yesterday, Retirement Fund Director Paula Blas told us that GMH was behind on retirement contributions by two pay periods. Blas says GMH’s balance is now at about $700,000.