Guam – More relief is coming to the Guam Memorial Hospital. Today, Adelup announced that Governor Calvo signed an executive order authorizing $14 million from the Pharmaceutical Fund to go directly toward the ailing hospital.
The governor endorsed Executive Order 2018-11 yesterday authorizing GMH to utilize the pharmaceutical fund as a direct subsidy.
Governor Calvo was given this discretion through the recently passed budget bill. Before the bill’s passage, the pharmaceutical fund, which is funded through a portion of the business privilege tax, was to be used as a Medicaid match. With the executive order now signed, proceeds from the pharmaceutical fund will now go directly to GMH.
Coincidentally, the hospital’s current vendor payable amount is $14.3 million. If GMH were to use the $14 million subsidy from the pharmaceutical fund to pay off their debt, it could put them back in the black.
In a release, Governor Calvo said, “I cannot allow GMH to fail. Regardless of what insurance you carry, whether Medicaid, MIP, or private, without a hospital where would they go? GRMC alone cannot carry the entire island—we’ve always said we need both hospitals to be functioning to accommodate our population.”