Frederiksted Healthcare asks Legislature to release $1M Epstein earmark, requests $3 million general fund for FY2026

Frederiksted Healthcare Inc. (FHC) asked the Committee on Budget, Appropriations and Finance on July 30 to maintain a $3,000,000 local appropriation for FY2026 and to expedite a $1,000,000 allocation from the Epstein settlement fund that was earmarked for FHC in a prior act.

"We are celebrating 25 years of providing services to the island of Saint Croix," CEO Massirae Sprow Webster told the committee. FHC said it provided care to nearly 9,000 unduplicated patients in 2024 and that about 98% of those patients have incomes at or below 200% of the federal poverty level.

Nut graf: FHC presented itself as a critical community safety‑net provider on St. Croix — primary care, dental, obstetrics, behavioral health and pharmacy programs — and described capital work, service expansions and an urgent facility repair request. The clinic asked the Legislature to help release the previously earmarked $1M (Act 89‑20) and to sustain the $3M annual local appropriation that supports the center—s Medicaid match and uncompensated care.

Key facts from the testimony

- FY2026 request to the Legislature: $3,000,000 (level with FY2025 appropriation). - FHC reported 2024 unduplicated patients: nearly 9,000 and ~45,000 clinical encounters in 2024. - Payer mix reported by FHC: 57% Medicaid (MAP), 12% Medicare, ~10% commercial insurance, ~21% self‑pay/uninsured. - FHC reported accounts payable around $303,630 as of 6/30/2025 and said it is largely current with vendor payments; some project invoices remained outstanding because payments are staged with construction/contract milestones. - FHC reported recent, unplanned electrical failures at the Ingeborg Nesbitt Community Health Center that required generator use (three weeks continuous) and direct expenditures (~$32,000 total: ~$22,000 wiring repairs and ~$15,000 diesel fuel; FHC advanced the payments and asked for government reimbursement because the lease assigns external electrical repairs to the GVI).

Program expansions and capital work

Webster described FHC—s new Outreach & Administration Building adjacent to North Shore Community Health Center (mostly funded internally by FHC), expanded weekend hours at several clinics to reduce emergency department reliance, and steps to expand behavioral‑health staffing and services. FHC also said it is seeking a replacement site for the Lena Sholterbrand clinic area and intends to keep the name if a new facility is located.

Maternal health warning

FHC concluded with a stark warning about rising maternal morbidity/mortality in the territory. "This is a public health crisis and a failure of our healthcare system," Webster said. She called for a cross‑sector task force and immediate actions to address staffing shortages, gaps in specialty care, late care‑seeking among undocumented pregnant individuals, and other system failures.

Ending: The committee asked FHC for follow‑up information (detailed revenue/receipts, the status of the Epstein earmark, and vendor aging). Committee members signaled support for confirming the $1M Epstein release and for evaluating the FY2026 $3M request as part of the overall budget process.

Speakers quoted

- "This is a public health crisis and a failure of our healthcare system." — Massirae Sprow Webster, CEO, Frederiksted Healthcare Inc. - "We are celebrating 25 years of providing services to the island of Saint Croix." — Massirae Sprow Webster

What the committee asked for next

FHC will provide: (1) updated revenue and accounts‑receivable detail for FY2025 and YTD FY2026; (2) documentation of the $1M Epstein earmark request and any OMB correspondence; and (3) a detailed list of outstanding vendor/project invoices and associated contracts.