Crisis averted. The hospital's amended corrective action plan
has been approved by the Centers for Medicaid and Medicare. And that preserves the Guam Memorial Hospital's eligibility for millions of dollars in federal reimbursements. 

"Very pleased, and really elated that the Medicare find us to be in compliance with the conditions of participation," hospital CEO Lillian Posadas said. "We are supposed to make sure that our services are premised on those conditions. It was a team, it was a team effort that we put it all together and they accepted it, yes."

After a February inspection, GMH was found non-compliant with two conditions of participation, and CMS warned that it faced termination from the program. Medicaid reimbursements represent as much as 40 percent of the hospital's revenues.

"That's what their goal is to work with us, to make the changes, the necessary changes to improve and be in compliance with the conditions of participation, you know in the interests, the best interests of the patients that we serve, and that's really what their goal is," Posadas said.

CMS could still be back for another surprise inspection at any time, she added.