The explanation given by hospital officials regarding the recent decrease in hospital fees has been met with some skepticism in the Fono. In a hearing called by the House Health Committee, Fagatogo faipule, Mauagoali’i Leapai Tusipa Anoa’i called the explanation “nothing more than wishful thinking” when Hospital board members said that the decrease in fees will serve to increase the number of people visiting the hospital — and that should cover the $1.13million in lost revenue. 

The hearing was called by the House Health Committee, following concerns raised by Ituau Faipule Archie Taotasi Soliai regarding the decrease of hospital fees. The hearing was attended by Acting Hospital Board Chairman, Dr Victor Tofaeono, Chief Financial Officer, Pauline Gebauer and board member Etenauga Lutu.

Gebauer explained to the lawmakers the loss of revenue from this decrease is $1.13million, according to her quick study and analysis based on visits to the hospital.

“We will see the visits go up again, because it’s cheaper now to go to the hospital,” she said, also pointing out that from April to September after the first $5 was reduced there was an increase of visits, and they anticipate that more will visit the hospital with the total decreased to $10.

Dr. Tofaeono said the governor was informed of the impact on the reduction of fees, and the board also informed him the hospital is looking at a significant loss.

The board looked at the 2% wage tax, the increase of the hospital’s budget, and the anticipated increase of visits to the hospital he said, He pointed out that there are patients who came in late to the hospital because they said they could not afford the fees.

Mauagaoli’i pointed out that “it does seem to be a substantial amount, and it appears that it’s nothing more than just wishful thinking.”

The CFO also explained to the lawmakers that outstanding uncollected revenues are very high — in the millions, and dates all the way back to 2002. She said it was puzzling to her as to why these bills have not been written off yet — because no one will pay a 10-year-old bill.

Rep Vailoata Amituana’i told the hospital officials that they should go after the sponsors of those who do not pay and work with the Attorney General’s office on this issue. According to the hospital CFO, their current Collections Manager Melanie Solaita has been working with the AG’s office and Immigration on this matter however she said “it seems to be a very difficult task to go after the sponsors — because who’s going to pay a 10-year-old outstanding bill?

She added, “I'm trying to get a meeting with the AG to see where we are on this issue.”

Dr. Tofaeono echoed comments by Gebauer that there have been ongoing discussions with the AG on this matter, and it’s come to the point where the board wants to hire a collection agency or create their own collection agency. However, the board has to obtain a legal opinion prior to implementation.

Vailoata further urged the hospital to follow the method used by the District Court who has asked the Treasury to withhold tax refunds unless people pay for their outstanding fees and traffic citations at the District Court.

Tualauta faipule Vui Florence Saulo said that while she does not object to the decrease of the fees, she's concerned with the impact it has on the hospital operations, given the significant amount of money that’s lost from this decrease. She also pointed out the unfairness of the substantial hospital fees slated for non residents, yet they too are paying their fair share of the 2%wage tax.

Dr. Tofaeono pointed out that they have looked at that as well, and they will be making adjustments. He was unclear as to whether the hospital board has agreed to decrease the hospital fees for the nonresidents. However, the Chairman of Hospital board last week informed the Senators during a hearing that there is a decrease in fees from $695 per day to $200 per day when non residents are admitted to the hospital.

Rep. Afalava pointed out that a law should be created for the sponsor to be legally responsible for the foreigners they bring into the territory; and if they don’t pay for their hospital fees, that should be included in their credit history.

He also said that there should be a clause in the same law which says that if the non-resident has not paid their bills, their checks should be deducted automatically.