The original article can be found in: Virgin Islands Daily News
ST. CROIX – More money was a popular answer Tuesday, as Luis Hospital officials went before the Senate Finance Committee.
Dr. Kendall Griffith, interim chief executive officer at the troubled hospital, said repeatedly, in different ways, that the hospital simply needs more money.
He also reiterated a request during the Fiscal Year 2014 budget hearing that other officials have made before him: That lawmakers tie the hospital’s General Fund appropriation to the amount of uncompensated care the facility provides, which he estimated at approximately $32 million for FY 2014.
“Realizing the territory’s own financial challenges and the limitations that may impede funding at the $32 million, JFL must reiterate that continuing to inadequately fund the level of care provided by any reduction in appropriations is directly linked to an equal reduction in health care services,” Griffith said. JFL is an abbreviation for the hospital, standing for Gov. Juan F. Luis, for whom the hospital is named.
Gov. John deJongh Jr. has recommended a General Fund appropriation of $19,253,114 for Luis Hospital’s FY 2014 budget, with an additional $400,000 appropriation in the Miscellaneous section of the budget.
The hospital has two major funding sources: The revenues it generates and appropriations from the government.
Griffith made it clear on Tuesday that the $19.2 million budget appropriation simply would not be enough.
The $19.2 million appropriation is projected to put Luis $9.2 million into the red for the year, according to Griffith.
“When JFL’s appropriations are cut or underfunded, you are making the decision to reduce patient care services and number of employees providing that service to the community of St. Croix.”
The extent of services the hospital will be able to continue to provide depends on how much money it gets, Griffith said.
Hospital officials have been sounding the alarm about the hospital’s finances since March 2011, when the Luis Hospital board declared a financial state of emergency.Since then, the hospital has endured two rounds of layoffs and the effects of the closure of HOVENSA on its revenues, among other issues.
Griffith told senators that the hospital could realize a positive cash flow if the Senate funded it at the $32 million figure, instead of the governor-requested $19.2 million.
In the past, the hospital’s appropriations were tied to the number of full-time employees that were paid through the General Fund, when the central government processed its payroll. The hospital now processes its own payroll.
Griffith maintained there was no reason not to tie the hospital’s funding to the uncompensated care it provides.
“With the positive cash flow, JFL can maintain its current level of service as well as pay down some of our outstanding debt, bring the inventory levels for pharmaceutical supplies to par, as well as make the necessary capital investments (i.e. Information technology) to improve efficiency and expand outpatient services,” Griffith said.
Luis Chief Financial Officer Deepak Bansal said he anticipates the hospital’s shortfall for FY 2013 will be approximately $8 million.
As the speakers went through three rounds of questioning, queries turned to the situation at the hospital and the controversy that has marked the last two weeks.
That controversy included Griffith’s resignation, the intervention of senators, the calling of a Senate session, the resignation of the hospital board chair and one member, and the calling off of the Senate session.
Some senators delved into personnel issues and the controversy, while others asked about contracts, morale, and how much the hospital really needs.
“Realistically, what we want is to get to the $32 million mark,” Griffith told Sen. Judi Buckley. “We know the uncompensated care we’re providing is $32 million.”
Griffith said that absolutely critical needs at the hospital include $1,183,000 for emergency room nurses, $300,000 for restoration of a fire-suppression system, $500,000 for an omnicell machine, $1 million for hurricane supplies and pharmaceuticals for hurricane readiness, $1 million to upgrade an electronic medical records system, $200,000 for a sterilizer for the operating room, $200,000 that is past-due to traveling physicians for work already done, and $1.5 million in past-due debt for traveling nurse agencies.
“Our hospital is in crisis,” Griffith said.
The hospital is anticipating total cash revenues for FY 2014 of $78,490,986, which includes the $19.2 million appropriation and income from revenues. It anticipates expenses of $85,756,597, leaving the $9.2 million deficit, according to Griffith’s testimony.
As he closed his prepared testimony, Griffith told senators it is time to take a different tack.
“There is a sense of urgency to do things differently, so we can get the desired outcome: a financially viable hospital that provides quality health care services that the community of St. Croix deserves,” he said.
