21 Jul 2011

American Samoa government constraints mean no money for LBJ hospital

4:09 pm on 21 July 2011

The American Samoa Government treasurer says there's no money to give to the LBJ Hospital because there is not enough to go around.

The government now owes the hospital over two million US dollars due in legally mandated subsidies.

The ASG pays four point 7 million dollars annually in subsidies to the hospital.

The LBJ chief executive Mike Gerstenberger, says it's only received 100 thousand dollars from the government since March.

He says the subsidy is what the hospital uses to pay the required matching funds for Medicaid.

Mr Gerstenberger says without that payment the hospital is unable to draw down the Medicaid funds.

Earlier this week it was revealed the government also owed the state owned utility company, the American Samoa Power Authority, more than five million dollars.