10 Aug 2012

American Samoa hospital denies paying bonuses

7:49 am on 10 August 2012

The LBJ Medical Center in American Samoa has rejected claims that the hospital is offering bonuses to contract workers who renew their contracts.

During a House Health Committee hearing, the territorial lawmaker Faimealelei Anthony Allen said he has received reports about LBJ paying out the bonuses for contract workers.

He said some contracts were originally made at US$40,000, but when renewed, are adjusted up to $60,000.

However the hospital's CEO, Mike Gerstenberger, told the hearing it all depends on what a person defines as a bonus.

He said that when a contract comes up for renewal, the hospital do adjust salaries for contract workers, who are not entitled to annual increments.

Mr Gerstenberger said LBJ does not pay bonuses to renew a contract.

The House committee has since requested for the hospital to provide a complete report of all contract workers, salary levels both currently and previous.