The Amercian Samoa Governor Togiola Tulafono says he will not sign a bill for a 10 million US dollar loan for the LBJ hospital until the hospital submits a fiscal reform plan.
He says the plan needs to outline ways to reduce expenditure, increase revenues and balance the hospital's budget.
The governor has 30 days to sign the bill.
He says he needs to ensure the hospital does not run up millions of dollars in debt and then ask the government to bail it out.
He says he will not sign the bill unless the LBJ comes up with reform measures that meet with his satisfaction.
And such a plan must identify ways of cutting back on spending without curtailing health services for the territory.