5 Jul 2005

American Samoa's hospital management unveils cost cutting plan

8:53 pm on 5 July 2005

The LBJ Medical Center in American Samoa hopes to save thousands of dollars by the end of the fiscal year in a proposal sent to territorial leaders.

The proposal hopes to save more than 400,000 US dollars by September.

Under the plan clinics would closed for one day a week saving 290 thousand US dollars, and a focus on revenue collection would net the hospital a further 150,000.

The board chairman Charles Warren said the Fono had already discussed tax increases and some of that money would be made available to the hospital in the form of an increased subsidy.

The plan means LBJ could save up to 2 million US dollars annually if the centre cut back on staff, ended a pharmacy consultancy contract and stopped issuing over-the-counter drugs.

And it also outlined that 1.1 million US dollars would be saved if clinics were to close one day per week for a year, and more if the medical referral office in Honolulu closed.