14 Jun 2013

Guam hospital struggles to pay off big debts

6:51 am on 14 June 2013

Guam Memorial Hospital wants lawmakers to pass a bill so it can borrow money to pay off some of its debts.

GMH Chief Financial Officer Alan Ulrich says the bill provides for a loan that would go a long way toward paying off the hospital's debts to its vendors.

Bill 132, proposed by Governor Eddie Calvo, would allow the hospital to borrow 13 million US dollars from a bank.

Two years ago, the hospital borrowed 12 million dollars after lawmakers authorised that loan.

But the Pacific Daily News reports that some senators say more borrowing will not solve the hospital's persistent financial problems.

Senator Michael San Nicolas says he's hesitant to support the bill because there's no clear plan on how the hospital would ensure it doesn't go into debt again.

The hospital owes about 18 million dollars to vendors, and Alan Ulrich says vendors have threatened to cut off service as a result.