American Samoa's Governor Togiola Tulafono has publicly criticised the board and the management of the LBJ Hospital for not doing anything earlier to avert the hospital's financial crisis.
Togiola is against the planned layoff of 274 staff members especially doctor and nurses.
He says he has told the board that if by Wednesday it has not come up with a plan to stop the layoffs he will dissolve the board and step in.
Togiola said on his radio programme that last year when the government experienced a shortfall in revenues, the LBJ management didn't do anything to cut spending but hired people on high salaries.
The governor says it's unacceptable to layoff doctors and nurses and close down clinics as the management is proposing because it will affect patient care.