Lawmakers are once again looking at way to help the Guam Memorial Hospital get back on stable footing. A new bill aims to give GMH access to funds that are supposed to be in their possession already – funds that, according to the measure’s author, have been sitting untouched for years.

The Guam Memorial Hospital is owed more than $8 million- money already collected through taxes but never delivered.  Now, Senator Sabrina Salas Matanane is demanding accountability through Bill 186, which directs the government to finally release those funds.

She said, “For years, the law has said that a portion of the Business Privilege Tax – 6.19% – goes into a special account called the Pharmaceutical Fund. This fund is supposed to help GMH pay for medicine, medical supplies, and equipment. The whole point of this law was to make sure GMH has a dedicated, steady source of funding separate from the General Fund.”

The senator says that even when tax revenues came in higher than expected, deposits into the Pharmaceutical Fund were capped at budgeted levels – shortchanging the hospital. She added, "According to the audited financials, the Department of Administration still owes GMH $2.3M from FY 2019, $393K from FY 2021, $2.2M from FY 2022, and $3.2M from FY 2023.” 

That totals roughly $8.1 million in funds already collected but never released to the hospital GMH interim CEO and administrator Dr. Joleen Aguon voiced strong support, calling the measure a necessary step toward stabilizing the hospital’s finances. “So, on the delivery of the subsidies that the legislature has provided, we are short roughly $3M. So this additional $8M would leave us with essentially $5M," said the doctor.

“First, it will be directed toward fulfilling our anticipated accounts payable for essential medical supplies and services in FY 2026.”

She says the funds will also help modernize outdated systems, strengthen vendor relationships, and improve overall operations. “This includes exploring the outsourcing of certain functions and departments identified as lacking sufficient capacity, as well as supporting the acquisition of new software to further improve overall operational efficiency," she said.

GMH’s chief financial officer, Yuka Hechanova, said the hospital’s vendor debts have already been drastically reduced after a previous $40 million appropriation –  leaving just about $130,000 in outstanding payments. Meanwhile, Dr. Aguon says the hospital continues upgrading critical infrastructure – including repairing electrical panels and replacing aging generators – to prevent further system failures.

If passed, Bill 186 would require the Department of Administration to release the unallocated Pharmaceutical Fund balance to GMH within 30 days – a move hospital officials say would bring long-overdue financial relief.