ST. CROIX — As the 36th Legislature of the Virgin Islands prepares to hold a legislative session Monday to consider appropriating much-needed funds to confront the critical financial challenges plaguing the territory’s hospitals, both facilities have submitted documents to a senator outlining millions of dollars in debt owed, with the most outstanding amounts owed to address staffing needs.
Senator Ray Fonseca, Committee on Health, Hospitals and Human Services chair, shared with other lawmakers documentation he received from both hospitals that outlined the immediate financial needs of each facility to maintain essential operations and patient care. Fonseca said receiving the breakdown of the accounts payable with a list of prioritized payments will aid senators as they prepare to appropriate funds to the hospitals.
“We’re concentrating on paying those vendors that can be in a situation where they would threaten to cut off supplies if they’re not paid immediately,” he said.
Fonseca, in a letter to his colleagues dated April 9, noted that Governor Juan F. Luis Hospital and Medical Center has proposed a prioritization plan to manage its outstanding vendor payments in a manner that will enhance patient care and improve operational efficiency. He noted Schneider Regional Medical Center has prioritized a subset of vendors requiring immediate attention to maintain safe and high-quality care.
The hospitals indicated a combined total of $11,956,496 needed to immediately pay vendors, including $5.4 million for JFLH and $6.4 million for SRMC.
Additionally, SRMC is also requesting the release of funding for balances owed to the VI government, including $11 million for the Government Employees’ Retirement System, $1.8 million for the Virgin Islands Bureau of Internal Revenue, and $80,000 for the Virgin Islands Department of Health to cover malpractice insurance premiums.
The urgency for the Legislature to appropriate additional funds to the hospitals came about after senators met with St. Croix physicians on April 3 upon receiving letters from physicians at both hospitals outlining a need for funding to purchase basic supplies, pay vendors, and hire more staff.
READ MORE: “Senators meet with JFLH doctors, caucusing Friday to set session to supplement funds for hospitals”
Darlene Baptiste, JFLH chief executive officer, indicated in a letter dated April 8 to Fonseca that she attached a comprehensive list of accounts payable and a summary focusing on the outstanding vendors, as well as the proposed prioritization for managing payables to enhance patient care and operational efficiency.
Providing a summary of outstanding vendors, Baptiste listed nine categories totaling an outstanding amount of $5,465,496.05. She noted those categories include $2,795,982 for the chief medical officer office to ensure staffing needs are met with qualified locum tenens, or temporary medical professionals; $705,890.47 to ensure all medical supplies are stocked; and $614,344.42 for radiology. Baptiste noted $583,418.37 for facility management service vendors to maintain a safe and operational hospital environment; $282,216.20 to guarantee the availability of medications for patient care; and $169,039.05 for operating room vendors to ensure timely access to surgical supplies and services. Baptiste noted $149,512 for biomed (equipment); $136,968.54 to maintain laboratory operations for diagnostic testing; and $8,400 for emergency preparedness.
Tina Comissiong, SRMC chief executive officer, indicated in a letter dated April 9 to Fonseca that she attached a detailed list with vendor names and the proposed amount to be paid to each vendor. Although the hospital’s accounts payable total more than $33 million, she noted SRMC prioritized the vendors with outstanding balances as the most urgent to be addressed at this time.
Comissiong listed seven categories totaling an outstanding amount of $6,491,000. She noted those categories include $3,795,000 for staffing vendors, $1,290,000 for medical supplies vendors, and $422,000 for facilities and medical equipment maintenance vendors. Comissiong noted $352,000 for freight, trucking, gas, and utilities vendors; $272,000 for medical software for patient care vendors; $195,000 for dietary services vendors; and $165,000 for operating supplies vendors.
After the hospitals receive funding from the Legislature, Fonseca said both facilities must tighten up and improve their management structures, operations, and billing practices.
“We are going to do our part to provide the funding, and we’re concentrating on the vendors, but the management side is something that the Legislature cannot fix,” he said.
Fonseca said the hospitals are operating at a net loss, meaning total expenses exceed the revenue produced.
“Even though we’re going to give them this money, their operations need to be improved so that they are not operating at a net loss, because as long as they’re operating and losing money, any money you give them will run out, and that’s what’s going to happen,” he said. “They have to improve their operations.”
