GMH continues cost-cutting measures

Guam - Following the closure of its outpatient hemodialysis services, the Guam Memorial Hospital is continuing to address several of its financial concerns. GMH chief financial officer Siva Karuppan says the way GMH gets funded has a bearing on how it handles its finances. Medicare, Medicaid and MIP represent half of its total bills and the payment methodology and reimbursement caps are causing the hospital to implement various cost-cutting measures.

 

"Right off the bat, on a $65 million total billable account, we collect approximately $30 million in these various categories of Medicare, Medicaid, and MIP," he explained. "This is the main reason why the hospital is always behind in terms of being able to manage its finances." 

 

He estimates the hospital collects $6.5 million a month but actually spends over $8 million. The closure of the outpatient Hemodialysis Unit saved the hospital $800,000 and a change in their phone system should drop its GTA bill nearly $6,000 a month. He adds after an in-house study showed their water meter was reading inaccurately, they changed it and by next month should drop its $60,000 monthly water bill in half. 

He hopes to work closely with the new chief executive officer whomever it may be to address those concerns.