Senators Push for Additional Funding Amid GMH Budget Shortfall and Vendor Payment Issues

The 38th Guam Legislature convened on August 17, 2025, for a budget session focused on the Fiscal Year 2026 budget, with significant discussions surrounding the funding challenges faced by the Guam Memorial Hospital Authority (GMHA).

The session began with a review of the proposed budget, highlighting a potential 15% reduction in funding if certain legislative measures are not passed. Senator Sabrina Salas Mentenani, alongside Senators Sean Govintalto and Vince Borja, introduced amendments aimed at securing additional funding for GMHA to address its financial shortfall. The urgency of these amendments was underscored by the hospital's history of substantial deficits, including a previous $15 million shortfall.

Key discussions revealed that GMHA's budget request was significantly lower than anticipated, with a noted discrepancy of approximately $7 million between the executive budget request and the substitute bill proposed by the legislature. The substitute bill also indicated a reduction in allocations for critical areas, including a decrease in the pharmaceutical fund from an expected $25 million to about $22 million, and a drop in general fund allocations from over $28 million to $19 million.

The hospital's financial situation was further complicated by rising accounts payable, which had increased from $20 million in May to over $25 million, with a significant portion overdue. The hospital administration acknowledged the struggle to manage cash flow, prioritizing payments to vendors for essential supplies over other obligations, including utility payments.

Senators expressed concern over the hospital's ability to meet its financial obligations and the implications for patient care. The administration indicated that while they were working on payment plans with vendors, the overall cash shortage remained a persistent challenge.

In conclusion, the session highlighted the critical need for legislative action to address GMHA's funding issues, with the proposed amendments seen as vital to closing the budget gap. The discussions underscored the ongoing financial struggles of the hospital and the importance of collaboration between the legislature and the executive branch to secure necessary funding for health services in Guam.