Guam Hospital Intentionally Underestimates Doctor Salary

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News Analysis

Guam Hospital Intentionally Underestimates Doctor Salary

News Analysis

Written by John Dela Rosa

Thursday, 31 December 2009 10:12

GUAM - According to the Public Auditor's report on the Guam Memorial Hospital Authority's 2009 financial performance, "GMHA continues to operate at a loss and suffer negative cash flows; its revenues continue to be insufficient to pay current expenses and payments to vendors. Because of these cash flow challenges, GMHA is unable to take advantage of discounts offered by suppliers and must pay higher prices for medical, pharmaceutical, and other supplies."

While collections remain a challenge to the hospital's solvency and ability to provide the highest level of care possible, operating expenses also outpace the amount for revenues the hospital collects. A case in point is the recent story covered by Guam News Factor, Guam Hospital Pays Part-Time Doctor Over $700K . Dr. John Young's GG-1 reflects a part-time salary level of $240,001. Yet in FY2009, documents reviewed by Guam News Factor show that the hospital paid Dr. Young a total salary of $784,041.08, more than three times the amount budgeted for his position.

The hospital's response to our story? In reference to the amount reflected in Dr. Young's GG-1, hospital spokesperson Connor Murphy responded in an email stating,"That stamp just means that that amount was budgeted for that position. Clinical positions can tend to go over the original budgeted amount based on need.".

And therein lies the problem. While the hospital knows that "clinical positions can tend to go over the original budgeted amount," it appears that the salary level was held artificially low to meet budget levels. With irresponsible practices like this, GMH is destined to continue to operate at levels less than the people deserve.

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