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GMH loan delayed

by Jolene Toves

Guam - GMH didn't get the Christmas miracle it was hoping for but there is still hope that crisis can be avoided.

The Guam Memorial Hospital had high hopes of receiving the funds from the $25 million loan before the end of the year but it appears that may not be possible as the documents for the loan has gone back to the lawyers. "There's some language in the documents that needs to be modified and clarified we discussed it yesterday and sent it back to the Bank of Guam's lawyers letting them know the language that needs to be modified and clarified. There are some related to the security issues and assignment of revenues that were not there before so we want to make sure that they're clear and we're clear on how things are operating," said Joseph Verga, GMH's administrator.

"There was a surprise clause in this that we said on no we didn't agree to that so it had to go back to them to say no this has to be removed or reworded because it wasn't what we agreed to."

As we reported the loan could help put GMH back in good graces with a number of its vendors and while the loan is eminent Verga was hoping to meet the January 1 deadline to pay off the $5.3 million debt to the vendor Perry Point, which threatens the hospital's Medicare funding. "I have been cautiously optimistic that even after the first of the year comes and we don't have the loan that garnishment will not automatically kick in," he said.

While he cannot guarantee there will not be any negative ramifications he says he is in communication with the vendor and the federal government about the status of the loan. Once the review has been completed by all parties lawyers it will then go to the Attorney General's Office for review and approval before making its way to the governor's office for final approval. 

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