Calvo signs qualifying certificate for new hospital
After more than a year since it's initial request, Governor Eddie Calvo signed the QC contract for the Guam Regional Medical City.
January 9, 2015Updated: January 9, 2015
By KUAM News
By KUAM News by Ken Quintanilla
Guam - After more than a year since it's initial request, Governor Eddie Calvo put pen to paper this morning, officially signing the qualifying certificate contract for the new Guam Regional Medical City.
Before its management team and staff, Governor Calvo says signing the contract was a no-brainer. The contract marks only the second QC he's signed within his four years in office. "The first one was for a hydroponics farm because we want to see a green revolution here and of course with this QC is start another revolution, a medical revolution that focuses on patient care for the people of Guam," he told KUAM News.
"The QC will result in 75% income tax rebates for 20 years, 100% real property tax abatement for 10 years and 75% corporate dividend tax rebate for five years," he added.
So what does that all mean? Based on estimates, the new hospital will generate $420 million in new tax revenues for the Government of Guam, more than double the $170 million tax abatement granted over the next 20 years. Chief operation officer Gloria Long said, "And that we can improve the quality of life for everybody and we're grateful that we have this opportunity to have a return on our investment and we look forward to continuing to serve the people and improving the health in every which way we can."
The QC requires GRMC to make $25 million in public contributions staggered over the 20 year term of the QC. The new hospital has recommended that a large portion of that amount go to support Medicaid and MIP payments. GEDA deputy administrator Mana Silva Taijeron says employment to local residents can be expected as well, saying, "The reason behind the QC program is the creation of jobs - what the hospital is doing is providing jobs for our people so this is a benefit for not just the healthcare community but the entire community."
GRMC will eventually employ up to 700 people. Under the terms of the QC, 75% of all employees must be US citizens and permanent resident aliens. And whether the return on investment be in taxes or jobs, the QC and the opening of the new hospital will more importantly result in the people of Guam not having to travel off -island for specialty care. Former lieutenant governor and GRMC's chief medical officer Dr. Mike Cruz.
"For me, about four years ago, my daughter had cancer so my wife and I had to spend almost 6 months living in Los Angeles as she went through chemotherapy and the surgery because being a doctor I was able to afford that, but for most people they can't do that so for us on Guam that's going to be a great thing," he said.
GRMC is set to open this year by the end of the first quarter.
Guam - After more than a year since it's initial request, Governor Eddie Calvo put pen to paper this morning, officially signing the qualifying certificate contract for the new Guam Regional Medical City.
Before its management team and staff, Governor Calvo says signing the contract was a no-brainer. The contract marks only the second QC he's signed within his four years in office. "The first one was for a hydroponics farm because we want to see a green revolution here and of course with this QC is start another revolution, a medical revolution that focuses on patient care for the people of Guam," he told KUAM News.
"The QC will result in 75% income tax rebates for 20 years, 100% real property tax abatement for 10 years and 75% corporate dividend tax rebate for five years," he added.
So what does that all mean? Based on estimates, the new hospital will generate $420 million in new tax revenues for the Government of Guam, more than double the $170 million tax abatement granted over the next 20 years. Chief operation officer Gloria Long said, "And that we can improve the quality of life for everybody and we're grateful that we have this opportunity to have a return on our investment and we look forward to continuing to serve the people and improving the health in every which way we can."
The QC requires GRMC to make $25 million in public contributions staggered over the 20 year term of the QC. The new hospital has recommended that a large portion of that amount go to support Medicaid and MIP payments. GEDA deputy administrator Mana Silva Taijeron says employment to local residents can be expected as well, saying, "The reason behind the QC program is the creation of jobs - what the hospital is doing is providing jobs for our people so this is a benefit for not just the healthcare community but the entire community."
GRMC will eventually employ up to 700 people. Under the terms of the QC, 75% of all employees must be US citizens and permanent resident aliens. And whether the return on investment be in taxes or jobs, the QC and the opening of the new hospital will more importantly result in the people of Guam not having to travel off -island for specialty care. Former lieutenant governor and GRMC's chief medical officer Dr. Mike Cruz.
"For me, about four years ago, my daughter had cancer so my wife and I had to spend almost 6 months living in Los Angeles as she went through chemotherapy and the surgery because being a doctor I was able to afford that, but for most people they can't do that so for us on Guam that's going to be a great thing," he said.
GRMC is set to open this year by the end of the first quarter.