1 Dec 2011

American Samoa hospital facing a financial emergency - Senator

7:21 pm on 1 December 2011

American Samon senator, Velega Savali, says the fiscal situation at the LBJ Hospital is critical and he wants unspent proceeds from the 20 million US dollar loan from the ASG Retirement Fund given to the hospital.

He said this includes an allocation for a new Fono building and money intended for the Eastern, Western and Manu'a Districts.

Velega says the fiscal woes of the hospital are an emergency which must be addressed now instead of waiting till the Fono resumes next year.

He says people's health should be the priority of the government.

The hospital management has blamed the government's failure to pay budgeted subsidies for a severe shortfall in revenues, and is contemplating raising rates and a layoff.

This has been put on hold however to give the governor and Fono time to come up with a solution.