Senator Matanani Collaborates on Legislation to Improve Prompt Payment Act

During the recent FY2026 Budget Session of the 38th Guam Legislature, a critical discussion emerged surrounding the challenges of timely payments from insurance companies to Grama Memorial Hospital. The conversation highlighted the pressing need for legislative reform to enhance the effectiveness of the Prompt Payment Act.

Key stakeholders expressed frustration over delays in payments, which are impacting the hospital's ability to settle accounts with vendors. One participant noted, “If we would get more timely payments... we could actually get some of the invoices out.” The current situation has left the hospital facing a staggering $60 million in overdue payments, creating a ripple effect that threatens the financial stability of local vendors.

Efforts are underway to address these issues, with discussions about collaborating with Senator Matanani to refine the Prompt Payment Act. The aim is to introduce legislation that would ensure insurance companies adhere to stricter timelines for processing claims. “It needs to be refined. It needs to be updated,” one speaker emphasized, underscoring the necessity for modern solutions to current challenges.

The urgency of this matter was palpable, as participants acknowledged the detrimental effects of delayed payments on vendors, many of whom are struggling to meet their own financial obligations. “I don’t know how much longer a vendor who is owed $300,000 and only paid $50,000 can survive,” one speaker remarked, highlighting the interconnectedness of the hospital's financial health and that of its suppliers.

As the session concluded, there was a collective commitment to pursue legislative changes that would facilitate better cash flow to Grama Memorial Hospital, ultimately benefiting the entire community. The discussions set the stage for potential reforms that could reshape the financial landscape for healthcare providers in Guam.