GMH stops outpatient hemodialysis services

by Ken Quintanilla

Guam - With the consolidation of various GovGuam departments in the works and several cost-cutting measures in place to continue operations, for the Guam Memorial Hospital it means saving nearly a million dollars…but at the cost of some services. Friday, September 30 will be the last day for outpatient hemodialysis services at the island's only public hospital.

According to GMH Chief Financial Officer Siva Karuppan, it is part of the numerous cost-savings measures the hospital is taking as part of GovGuam's financial situation. "We found that the outpatient dialysis service can be better served outside the hospital by private dialysis facilities," he said. "This is also a tremendous cost-saving major by the hospital; we estimate that we would save close to $800,000 to a million dollars in the closing of our outpatient dialysis services."

Karrupan says the ending of services affects nearly 40 patients, but GMH will still offer in-patient dialysis services. Those patients will be referred to one of four private facilities owned by the Guam Renal Center: Guam Renal Care in Hagatna, Guam Dialysis Center in Tamuning, Renal Centers of Guam in Harmon, and Tumon Kidney Center in Upper Tumon. 

He adds the outpatient hemodialysis center at the hospital frees up space while GMH remodels the intensive care unit which permeates noise, saying, "So one thought is to move those patients on a temporary basis away from the noise and construction activity to the first floor where the outpatient dialysis facility is or used to be and that way it will separate patients from hardships and turmoil from noise pollution."

The ICU renovation is being paid by ARRA funding. Although it won't stop any other services in the hospital, Karrupan is looking at every department to find ways to cut costs. "We are certainly taking a look at the emergency room department to see if it's financially and fiscally feasible to privatize that department," he continued. "We are also taking a look at the radiology department to see if it's also financially viable for the hospital to privatize."

GMH has found a new vendor for transcription services cutting its $26,000 a month payment nearly in half. It has also engaged with a local company to provide VoIP services that will dramatically cut over 300 phone lines. but produce a savings of nearly $20,000 a month.

He hopes the cuts will ultimately enhance how the delivery of care is rendered to patients. Additionally, the hospital is working on more improvement in services following the Joint Commission's visit in late august and concerns raised by the centers for Medicaid. Karrupan does say to entertain the Joint Commission, the hospital had to fork over $30,000 for the unannounced visit - money of which the hospital doesn't necessarily have lying around.

He said, "I think personally as a chief financial officer, we are spending a tremendous amount of money to ensure we are JACHO accredited, I'm not really sure the costs benefit analysis is for that."

Karuppan says GMH should really be focusing on the Centers for Medicaid, which had granted the hospital more time to comply with federal Life Safety Code requirements.