Correctional Facility Faces Funding Shortfall Amid Unpaid Medical Invoices

During the recent budget session of the 38th Guam Legislature, significant concerns were raised regarding the financial challenges faced by the Department of Corrections (DOC) in meeting its monthly billing obligations. The discussion highlighted that the current appropriation of $3.65 million for the DOC is insufficient to cover the costs incurred, particularly in relation to inmate healthcare services.

Officials noted that the DOC is already facing shortfalls, with expectations that only about 30% of the July invoice will be paid. This situation raises alarms as funding for subsequent months—August and September—remains uncertain. The implications of these financial constraints are serious, as they could affect the quality of care provided to inmates and the overall operational capacity of the DOC.

Moreover, the meeting revealed that the DOC has outstanding invoices dating back several years, amounting to approximately $54 million. These unpaid bills include costs associated with inpatient hospital admissions for inmates, which have not been reimbursed. While the Department of Administration (DOA) has begun to reimburse at Medicare rates, the reimbursement rate remains low, with the DOC receiving only about 20% of what is billed.

The recent payment from DOA, which was received just before the meeting, has yet to be fully analyzed, leaving uncertainty about its impact on the DOC's financial situation. The ongoing financial strain on the DOC underscores the need for a reevaluation of budget allocations to ensure that essential services can be maintained.

As the legislature continues to deliberate on the FY2026 budget, the discussions from this session highlight the urgent need for a comprehensive approach to address the funding gaps faced by the DOC, ensuring that both the health and safety of inmates and the operational integrity of the department are preserved.