10 Apr 2015

American Samoa hospital troubles worse than first thought

9:39 am on 10 April 2015

The latest cash flow problems for LBJ Medical Centre in American Samoa are worse than first thought.

LBJ hospital, American Samoa

LBJ hospital, American Samoa Photo: RNZI

The hospital's CEO told the Senate this week that LBJ's approved fiscal year 2015 budget is $US52 million, but it has since been discovered that the actual budget is about 40 million or less.

Taufete'e John Faimuina says this due to the possible loss of funds that had been expected from the Federal Affordable Care Act or Obamacare.

Taufete'e also says the territorial government is $US2 million behind in paying the subsidy while nearly $US3 million has yet to paid by the government from the 2 percent wage tax.

He says after the first quarter of the 2015 financial year, the hospital was in the red by over $US2 million, and if this trend continues LBJ is forecasting to be in the red between $8-9 million US dollars at the end of the current fiscal year.

He says the hospital is faced with a serious cash flow problem and have implemented cost cutting measure to ensure things don't get worst.

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