Guam Memorial Hospital To Borrow $25 Million To Pay Debts

admin's picture

Hospital currently owes between $20-$22 million to vendors

By Jerick Sablan

HAGÅTÑA, Guam (Pacific Daily News, Dec. 6, 2013) – The Guam Memorial Hospital (GMH) Board of Trustees last night voted to borrow $25 million to pay its debt.

Alan Ulrich, GMH chief financial officer, said the Guam Economic Development Authority (GEDA) board also has to ratify the loan agreement. GEDA board members are expected to meet on Tuesday, he said.

The plan is to borrow $25 million. About $10 million of the loan would repay another loan that was used to bail out the hospital about three years ago. About $14 million would go directly to the hospital, officials have said.

The new borrowing plan for the hospital is expected to generate about $14 million in cash after the older debt is paid off or consolidated.

The island's only hospital for civilians owes between $20 million and $22 million to vendors for various supplies and services, officials have said.

GovGuam will commit to using compact-impact funds and tobacco industry settlement funds to repay the proposed loan, the request for proposals states.

Intensive care

The board last night also discussed the new Intensive Care Unit and Emergency Department.

The expansions, unveiled Monday, increased the hospital's emergency room and ICU to about four times their original size, officials said.

Joseph Verga, GMH administrator, told the board last night the is hospital still planning to move the Intensive Care Unit into its new renovated location on Saturday. The Emergency Department will move to its new location on Dec. 15.

The new ICU and Emergency Department was officially opened on Monday. Verga said staff has been training and getting used to the new area this past few weeks.

"We're on track to move in," he said.

The hospital will double-staff both ICUs during this time to ensure smooth movement into the new location.

The emergency room will have new trauma centers, more beds and a bigger waiting area for families. The ICUs will have more privacy, more space and state-of-the-art equipment, he said.

Rate this article: 
No votes yet

Add new comment