ReadAccess to quality medical and health care services is important for the well-being of Guam's citizens. Currently, the Guam Memorial Hospital Authority (GMHA) located in Tamuning, Guam, is the only public hospital on the island. GMHA provides services to over 159,000 citizens. We evaluated GMHA's ability to provide medical care to the people of Guam and also to prepare for the increase in population resulting from the U.S. military buildup on Guam. Our review revealed that GMHA's negative cash flow is insufficient and its reimbursement rates and fee schedules are out of date.
Many of the weaknesses we found relate to GMHA's inability to generate revenues, collect fees, and secure revenue sources that compensate for the care of uninsured patients. Without enough income, the hospital cannot expand and upgrade its infrastructure, maintain and replace supplies and equipment, or recruit and maintain necessary staffing. Further, a new private hospital is under construction and, once it opens, might exacerbate GMHA's financial challenges by drawing away some of its self-paying and insured customers. GMHA and GovGuam need to address these challenges to meet the medical care needs of Guam's citizens. Unless additional actions are taken to collect needed revenue and secure funding sources for GMHA, the quality of health care services GMHA provides for the people of Guam will be at risk. This evaluation report was delivered to the Honorable Eddie Baza Calvo, Governor of Guam.