by Mindy Aguon
Guam - The Guam Memorial Hospital board last night approved a resolution authorizing the $12 million loan with the Bank of Guam. The loan provides GMH with secured funding sources that will be used to pay past due bill and critical hospital vendors. GMH will make loan payments using dedicated funding from the Healthy Futures Fund, as well as Pharmaceutical Fund allotments and patient revenues.
Chief Financial Officer Jane Flores told KUAM News, "Whereas the board of trustees of the Guam Memorial Hospital Authority has determined that a cash shortage threatens the operations of the hospital and the situation continues to exist."
The hospital had intended to use the full $12 million to pay vendors for medical supplies and pharmaceuticals, but the board passed a motion last night that sets aside four million for withholding taxes. GMH is looking to offset what it owes in taxes with the millions that it has provided in services to various government agencies.
If they are successful, that money will also go toward vendor payments.