GMH faces $2M payment deadline to New West for travel nurses

The 38th Guam Legislature convened on May 5, 2025, at 2 PM for a budget hearing focused on the Fiscal Year 2026 budget. The meeting addressed several critical financial issues, particularly concerning the Guam Memorial Hospital (GMH) and its ongoing financial obligations.

The discussion began with an overview of the hospital's payment schedules from various insurance providers. It was noted that while Medicare payments are received daily, payments from private insurers such as Select Care, Take Care, and NET Care typically arrive later in the week. Medicaid payments also follow a similar timeline, arriving mid-week.

A significant concern raised during the meeting was GMH's outstanding utility payments. The Guam Waterworks Authority (GWA) confirmed that GMH is current on its payments, while the Guam Power Authority (GPA) payments are three months overdue, totaling approximately $700,000. The hospital's representatives indicated that the next payment for power is due in mid-May.

The urgency of financial obligations was underscored by the hospital's inability to make a $4 million payment to New West for traveling nurses. If GMH fails to pay $2 million by May 9, the company will cease sending additional travel nurses, which could severely impact hospital operations. Currently, GMH employs 18 travel nurses from New West, with their assignments staggered over three months.

Additionally, the meeting highlighted a deadline of May 7 for submitting a risk assessment to the Department of Health and Human Services (HHS). GMH representatives assured that they were finalizing the necessary documentation and planned to submit it on time. The risk analysis was conducted by the contractor IS Squared, for which GMH has paid a total of $50,000. The hospital was granted a sole source procurement for this service due to the urgency of the situation.

The discussion also touched on potential cost containment strategies, including workforce reductions. The representatives indicated that the budget proposal may need adjustments based on the preliminary estimates from the risk analysis, particularly concerning the $5 million allocated for IT improvements.

In conclusion, the budget hearing revealed pressing financial challenges facing GMH, particularly regarding utility payments and staffing levels. The hospital's ability to meet upcoming payment deadlines will be crucial in maintaining its operational capacity and ensuring continued care for patients. Further discussions on budget adjustments and cost containment strategies are expected as the legislature moves forward.