The chief executive of the Northern Marianas' Commonwealth Healthcare Corporation says the Health Center is paying too much for services.
Juan Babauta says this is the cause of the sad state of the hospital.
He says the wage bill alone amounts to 1 point six million dollars a month and dialysis treatments cost half a million dollars.
Mr Babauta highlighted the extent of the hospital's debts by revealing that the utility company recently sent a collection agency to the hospital to force it to pay its bills, which average 400 thousand dollars a month.
Meanwhile the hospital management has told lawmakers that it has accumulated receivables of about 131 million dollars.
Its CEO, James Phillips, says 80 percent are classed as doubtful or questionable accounts, though the hospital doesn't plan to write them off.