GMH submits $191M budget

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Guam – The island’s only public hospital submitted a budget request of $191 million for fiscal year 2020.

While the amount seems like a huge chunk of money, the hospital operates for 24 hours a day with an admission rate of around 5700 patients a year.

According to hospital administrator Lillian Posadas, GMH requires around $134 million for operations; $46 million for critical equipment and upgrades, and; an allotment for urgent repair.

75 percent of the budget is allocated for direct patient care. Administrative support makes up the remaining 25 percent.

If you compare the 2020 budget request with the last ten years of funding, Dr. Annie Bordallo, GMH medical director, said allocation for direct patient care  has increased from 50 percent in 1998 to 75 percent.

GMH also projects revenues at around $104 million plus a subsidy of $30 million for operations. However, Bordallo mentioned that the hospital could potentially have a budget shortfall of around 20 to 30 percent.

Hospital officials said that 15 percent of GMH’s clients are self-paying. Meanwhile, 50 percent under Medicaid, Medicare and MIP which averages a reimbursement rate of about 70 percent.