By Pacific Island Times News Staff
Sen. Therese M. Terlaje has introduced a bill requiring Guam Memorial Hospital to partner with a private organization to improve its management, operations, finances and other key areas.
“A public-private partnership offers the best path forward for GMH,” Terlaje said. “It allows the government to ensure critical services like maternal care remain accessible, while bringing in private-sector expertise to improve efficiency and address long-standing challenges.”
With plans for a new hospital moving forward, Terlaje said a modern building alone would not solve the deeper systemic issues facing GMH.
The government hospital has recurring challenges such as inefficient billing and collections processes, the need for a new Electronic Health Records system, and outdated Medicare rebasing rates should be resolved well before a new hospital opens.
Terlaje said a partnership with a private organization experienced in hospital management will provide the expertise needed to address these issues and ensure a smooth transition to a fully functional, state-of-the-art healthcare facility.
The public-private partnership concept for GMH is not new.
In 2016, the Guam Economic Development Authority issued a request for information, which drew strong interest from private organizations seeking to get involved in GMH’s operations and management.
While a bill introduced in the 35th Guam Legislature attempted to establish a public-private partnership, the hospital's leadership testified against it, saying the hospital was already on a "path to improvement." At the same time, they raised concerns that a public-private partnership would displace current personnel.
Terlaje said her new legislation, Bill 13-38, addresses these concerns, ensuring protection for existing staff.
The bill includes a provision to ensure that all non-management employees, including nurses and other critical personnel, retain their jobs and associated benefits, providing stability and continuity during the transition.
Bill 13-38 mandates that a new RFP be developed based on information gathered from GEDA’s current contract with a hospital consultant, audits pointing out flaws with previous consulting contracts and will address procurement and funding concerns.
The bill requires the creation of a GMH P3 Committee to oversee the development of a request for proposal defining the details of the public-private partnership agreement.
Terlaje has also reintroduced a proposal to restore critical medical and family care services lost due to the abrupt closing of the public health clinic in Mangilao following a fire in 2019.
Bill 12-38 proposes reserving Lot No. 2417-1-R7, the former Department of Public Health and Social Services main building in Mangilao, for immediate use as a central health clinic.
The legislation also authorizes continued partnership with federally funded community health centers, and the Guam Community College Nursing Program, to strengthen Guam’s healthcare workforce.
Before its closure, the facility recorded over 8,300 service encounters annually, including nearly 1,800 women’s health services and 600 child health services.
Since the facility’s closure, these numbers have plummeted by 49 percent, with child health services seeing a staggering 73 percent decline by 2023.
"This decline represents more than just numbers—it reflects families unable to access the care they need," Terlaje said.
The Mangilao facility housed critical resources, including a new X-ray machine, laboratory, dental office, and other vital equipment, all of which were left unused following its closure, leading to the discontinuation of those services.
During a public hearing in the 37th Guam Legislature, the administrator for the Bureau of Family Health and Nursing Services testified that only half as many pregnant patients were being cared for outside of the Mangilao facility and half as many patients treated for communicable disease as of January 2024.
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