“We’re helping GMH with its financials so Joe Verga and his team can concentrate on what they do best — improve patient care. I thank my colleagues in the Legislature for this bipartisan effort to solve some of GMH’s financial problems. This is the value of working together, no matter your political party.” — Governor Eddie Baza Calvo
GMH & DOA still reconciling amounts before Hay plan lump sum is paid
The General Fund will pay the increments owed to hospital employees for last fiscal year. Governor Calvo’s fiscal team identified existing authorization to use the cash the administration saved for Guam Memorial Hospital employees.
$1.8M next week for increments only
About $1.8 million will be remitted to GMH next week. The hospital is committed to using this money to pay the employees. The administration paid this same amount to GMH last year for increments, and the hospital unfortunately had to usde the money for other expenses.
Debt to employees led to legislative involvement
This led to a debt to employees. Sen. Dennis Rodriguez introduced a bill to grant the governor legislative authority to pay the increments since the hospital had used that money for other payments.
Bipartisan effort leads to solution
Senators Tony Ada, Chris Duenas, Aline Yamashita, Mike Limtiaco, Brant McCreadie, and Tommy Morrison were concerned Sen. Rodriguez’s bill would cause significant burden on other agencies. They offered to work with him and the administration to find another way to pay this liability. Together with Sen. Rodriguez, they worked with the Governor’s fiscal team to find the solution.
Hay retro pay being reconciled
The Department of Administration is waiting for GMH to reconcile its financials with DOA before payment of the debt to General Pay Plan employees at the hospital. GMH did not receive cash disbursement for the retro lump sum payment of the Hay plan for all those months they took in only 50% of the pay level. DOA could not release this amount because of the very large difference between the amount GMH claims is needed for its GPP employees, and the amount DOA calculated.