Guam – The GMHA Board of Trustees held a special board meeting this evening for the presentation of the hospital’s FY2015 appropriations budget which was unanimously approved by the trustees.
The budget presentation conducted by GMHA Administrator/CEO Joseph P. Verga and Chief Financial Officer Alan Ulrich provided the following highlights:
1. This is a balanced budget!
Fiscal 2015 Appropriations Total $137,956,473
Capital Expenditures $ 4,000,000
Total Fiscal 2015 Appropriation $141,956,473
Total Revenues $142,083,691
2. GMHA’s Finance Department will now prepare the documentation for submission to the Guam Legislature by March 31, 2014.
3. GMHA debt was significantly reduced over the year thanks to Governor Calvo designating funds to GMHA and the Legislature’s approval of the additional debt.
4. GMHA was certified for CMS Meaningful Use funding for an Electronic Health Records (EHR) system and recently received $1.3 M in incentive payment for phase 1 and stands to receive additional incentive money in future years.
5. New services with new revenues are reflected in this budget. Epidural services have been implemented. GMHA is offering more outpatient services. Physician practice partnerships are planned. Urgent care will be added. GMHA is evaluating potential Intermediate Care Facility (ICF) level of care and a Long Term Acute Care (LTAC) designation at our Skilled Nursing Unit (SNU) in Barrigada Heights. These initiatives will add new levels of care not presently available on Guam.
6. Sources of new revenues: RFPs for outsourcing several areas are in progress, recruitment for specialist physicians are ongoing. The Hospital is moving to a Hospitalist based model across all specialties.
7. GMHA is in the middle of aggressively pursuing Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA) rebase adjustments.
8. Improvements in billing and coding proceed feverishly to comply with new ICD-10 and Medicare rules and regulations that take effect this year.
9. GMHA is sending an additional $55M in uncollected debts to the Dept. of Revenue and Taxation (DRT) for tax garnishments bringing the total uncollected amount with DRT to over $159M.
10. Mr. Verga emphasized the need to fund GMHA differently to sustain mission and services. “We want to work with Adelup and the Legislature to identify a sustainable revenue source allocated to GMH to fund the cost of uncompensated care for self pay patients. We suggested the island could implement a departure fee which could be allocated to uncompensated care with a Self Pay Trust Fund created at GMH.”
11. Mr. Verga will be presenting information to Adelup and the Department of Health and Human Services to amend the Medicaid and MIP health plan legislation to reimburse GMHA at cost. The uncertainty of patient days and reimbursement changes requires GMHA to exercise flexible-staffing according to census.
12. GMHA has created a task force to evaluate the option of a productivity and performance based compensation system for physicians.
13. Reduced length of stay for inpatients.
14. Cost savings and efficiencies will be realized through outsourcing bringing in new revenue and redirecting staff to fill existing vacancies saving money.
15. New challenges surface every day but GMH continues to steadily move forward in the right direction and continues to be very responsible with managing funds.
16. The GMHA Board of Trustees, medical staff, employees and leadership are committed to PROVIDE QUALITY PATIENT CARE IN A SAFE ENVIRONMENT for all patients.