09.10.11 GMHA, Garnishment Lifted
Secretary of Health and Human Services Lifts Garnishment of Medicare Payments
Last week, Governor Calvo sent a letter to Secretary Kathleen Sebelius of the U.S. Department of Health and Human Services, requesting the garnishment of Medicare payments be lifted. Congresswoman Madeline Bordallo’s office informed the administration Secretary Sebelius will lift the monthly garnishment of Medicare payments for Guam Memorial Hospital Authority.
HHS began garnishing GMHA Medicare payments to pay the hospital’s debt to Perry Point (HHS Supply Service Center).
Lifting the garnishment allows GMHA to refocus their resources on paying off their debt.
The monthly garnishment of Medicare payments has threatened GMH’s ability to pay its vendors and provide essential clinical care to its patients.
Governor Calvo’s letter outlines GovGuam’s actions to address GMHA Debt
In a letter sent to Secretary Sebelius, last week, Governor Calvo outlined the financial issues GMHA faces and the actions GovGuam is taking to address them.
He assured Secretary Sebelius that $13 million in Compact of Free Association reimbursements has been pledged to pay GMH vendors, including Perry Point. The Office of Insular Affairs, U.S. Department of the Interior, has confirmed this request.
The letter points directly to the under-funded mandates of the federal government. Governor Calvo highlighted Guam’s challenges with the Medicaid Program Costs and the increasing demand the Compact of Free Association places on hospital resources. GMHA and the government of Guam remains committed to paying down the hospital’s debt and paying their obligations to their vendors.

*****End of Release*****

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