GMH Strikes Deal with Federal Vendor to Eliminate Medicare Garnishment Threat


CFO Benita Manglona says Perry Point agreed to accept monthly installment payments from the hospital to eliminate their debt.

Guam – While the Guam Memorial Hospital has been in the spotlight in recent weeks because of the financial challenges they continue to face, they are slowly making progress.


Just yesterday, they finally received some money from the general fund in October allotments, and now, the cash-strapped hospital working on a deal with a major federal contractor that could eliminate the threat of Medicare garnishments.


Just last week they owed the retirement fund about $1.2 million in retirement contributions and another million to Perry Point, a major federal contractor that has, in the past, garnished the hospital’s Medicare reimbursements.

A contributing factor was that the hospital had not yet received its anticipated October allotment for Fiscal Year 2016. CFO Benita Manglona says they finally received some cash from the Department of Administration yesterday of about a million dollars.


“It paid for the retirement fund and some other obligations. Of course, GMH has a lot more obligations than the $1 million but we just have to deal with–prioritize what payments we need to make,” she says.

While the hospital is current with the retirement fund today, tomorrow is a different story. Another $150,000 is due tomorrow (Friday) for the defined contributions plan and next week Friday, yet another $500,000 is due for the defined benefits plan.

Manglona says staying current with the Retirement Fund remains one of their top priorities.

As far as their outstanding debt with Perry Point, Manglona says she was able to secure a deal that could remove the threat of Medicare garnishments. Last week, we reported that GMH was put on notice by Perry Point for Medicare garnishments because of an outstanding debt of over $1 million.

“I had been communicating with Perry Point and they are working with the hospital and they accepted my proposal of installment payment. I impressed upon them the challenges that the hospital has. I gave them audited financial statements, because they requested for back support of what I’m saying,” she says. “I sent them the two articles about GMH missing the retirement fund payment and I told them that this is what I’m talking about that the hospital is just challenged for cash.” 


In fact, Manglona tells us that she advised Perry Point representatives about the consequences of garnishing Medicare reimbursments.

“[I told them] if you garnish Medicare payments, then you are, in fact, jeopardizing patient care. So they responded today and they said they accepted my proposal,” notes Manglonga.

Manglona says the payments will be made on a monthly basis for their outstanding debt.