Guam committee hears bill to release about $8.1 million owed to Guam Memorial Hospital

The Committee on Finance and Government Operations of the 30th Guam Legislature held a public hearing Oct. 27, 2025, on Bill 186-38 COR, an act to appropriate the unallotted balance of the pharmaceutical fund to the Guam Memorial Hospital Authority.

Senator Sabrina Salas Matanani, the bill's author, said the measure would not create new taxes or borrowing but would require the Department of Administration to release money already collected for the pharmaceutical fund. “For years, the law has said that a portion of the business privilege tax, 6.19%, goes into a special account called the pharmaceutical fund,” she said, and deposits have been capped at budgeted levels, “shortchanging GMH year after year.” She listed audited unpaid amounts totaling about $8.1 million from fiscal years 2019–2023 and said the Department of Administration would have 30 days after passage to release the funds.

Dr. Jolene Maatniel Uggen, interim hospital administrator and CEO of Guam Memorial Hospital Authority, testified in strong support. She said the appropriation would be directed to vendor payables in fiscal year 2026 and to specific operational needs, including software to modernize materials and pharmacy inventory tracking, HR and payroll upgrades, and exploring outsourcing for units that lack capacity. “The appropriation of the unallotted balance of the pharmaceutical fund as detailed in the bill is a necessary step towards stabilizing our hospital's finances,” Uggen said.

On vendor balances and prior appropriations, Uggen told senators that the $40 million general-fund support passed in Public Law 38-59 left about $130,000 available from the vendor portion after reserving $10 million for two capital projects. She said accounts payable remain fluid and offered to provide a quarterly report as of Oct. 31 detailing payables after the next DOA payment. The committee chair summarized broader commitments to GMHA, noting roughly $50 million in combined legislative commitments including capital funds, planned excess-revenue allocations, and the amounts under discussion.

Senators asked about specific uses and timelines. Uggen said the appropriation would help close a $3 million gap between GMHA's requested budget and what was approved in recent law and would fund other critical non-CIP needs. She also described ongoing work with Guam Power Authority on electrical stabilization (auto-transfer switch and motor-controller replacement) and planned procurement steps for two new 1.6 MW generators.

The hearing closed at the chair's direction; the committee will continue to accept written testimony within seven days.