The Guam Memorial Hospital Authority said they need $21.9 million in additional funds to remain operational. 

It's a critical shortfall that may force the island’s only public hospital to cut services, according to Chief Financial Officer Yuka Hechanova. 

“Without it, we will have reduced capacity that will require bed closures. Our patients will have to wait longer in the ER for a bed. We will not be able to pay vendors for pharmaceuticals, oxygen and vital supplies. We will not be able to pay contractors to service our medical equipment– our elevators, our boiler, our water treatment system. We will not have enough nurses and doctors to care for our patients,” said Hechanova. 

A panel full of hospital leadership advocating for their budget in a hearing before senators on Monday. 

GMH is seeking a total of $213.6 million for Fiscal Year 2026. 

Hospital Administrator and CEO Lillian Perez Posadas emphasized the ‘imperative need’ for the additional funds. 

They owe vendors $20.8 million and are short $3 million a month for payroll. 

Plus, she admits they have not paid their power bill in three months and even several travel nurses. 

Senator Sabrina Salas Matanane: On Sunday, $4 million was due to Nuwest for travel nurses. Were you able to make that payment? 

GMH Admin & CEO Lillian Posadas: No, ma’am. 

Matanane: So what does that mean? 

Posadas: If we don’t make a $2 million payment by May 9, they will no longer assign and refer travel nurses to GMH.

Their financial crisis is compounded by slow collections, Medicaid reimbursement challenges, delays and denials from local insurance companies, patients experiencing homelessness who continue to stay hospitalized, among other concerns. 

General Surgeon Dr. Ricardo Eusebio said he’s been witnessing this ‘vicious cycle of failure’ for more than 35 years while practicing in Guam. 

“The thing is, this has to be resolved before we go to the new hospital. Because unless we resolve these issues, we’re going to have the same problem in the new hospital. And it’s going to fail. It’s going to fail. So it’s up to you to try to resolve these issues and uncouple ourselves from this vicious cycle of failure,” said Dr. Eusebio.  

Meantime, GMH is considering reducing their workforce by ten percent, adjusting compensation, and other cost containment strategies.