11 Jan 2016

Federal problems cut cashflow to American Samoa's hospital

8:26 am on 11 January 2016

American Samoa's only hospital says it has cash flow problems because the government has failed to pay a half-a-million US-dollar subsidy.

The chief executive of the LBJ Hospital, Taufetee John Faumuina Junior, says it's caused by the delayed federal budget process.

He says the hospital has now delayed paying some allowances to employees, as well as to some service providers.

Hospital employees say medical supplies are critically low in some clinics.

Taufetee says the hospital is considering other cost cutting options, but will not do anything that will compromise the quality of healthcare.

LBJ hospital, American Samoa

LBJ hospital, American Samoa Photo: RNZI