Pago Pago, AMERICAN SAMOA — The American Samoa Medical Center Authority budget for the new fiscal year outlines an increase of $15 million allocated for salaries.

In the current fiscal year, personnel expenses were $29.81 million, but the new budget has personnel at $45.27 million. The entire budget for the hospital is $145 million compared to $65.5 million in the previous year.

This is outlined in the cover letter for the hospital’s $145 million total budget.

 “Which is a true reflection of the rising cost to operate the only 150 bed hospital, the inescapable rise with the cost of living the abrupt jolt brought on by unexpected pandemic COVID-19; the constant upkeep of old equipment from a dilapidated facility, the insertion of new and planned initiatives and many other extenuating factors, too numerous to mention.”

The Fono had approved the budget for FY 2023, which is set to start on October 1, 2022. The cover letter was addressed to Governor Lemanu P.S. Mauga and Fono leaders and dated the July 12, 2022.

 “Unlike last year’s budget submitted, which did not shoulder the true extent of the cost of LBJ’s operations thus in part, gave rise to the upsurge as seen in the FY 2023 budget.

 “Nonetheless the cost of operating a hospital in the territory with its intrinsic impediments, at the most basic level continues to grow uninhibitedly and regrettable some of which are beyond our control.”

Moefaauo pointed out the management is aggressively seeking innovative ways to “throttle down” on the cost of operations, aligning it with the hospital’s ability to secure revenues.

The CEO asked that government leaders provide “undivided” support for the hospital budget to sustain its current operations until these measures are given time to “bear fruits”.

According to the hospital budget revenue includes $43 million from the Medicaid; $8.5 million from Medicare; $9.08 million from the Department of Interior; $4 million from ASG’s subsidy; $5 million under other collections and $400,00 from fuel excise taxes.

There is also $75 million from American Rescue Plan Act (ARPA) funding.

Of the $145 million budget $45.27 million is allocated for personnel; $23.84 million for material and supplies; $68.09 million for contractual work; $409,000 allocated for travel; $2.27 under all others and $5 million for equipment.

The CEO’s office allocation is $3.25 million; $14.52 million for the Medical and Ancillary Department; $6.38 million for the nurses while the administrative and finance department’s budget is $4.06 million; $2.79 for the Works and Facilities Department and $1.74 million for dialysis.

As reported earlier, the salary of the hospital’s CEO was scrutinized by the lawmakers during the joint budget hearing recently, as it’s “only $5 dollars away from the Lt Governor’s salary of $120,000 per annum.”

The current salary for the Lt Governor stands at $120,000 while the CEO’s salary is $119,995.

Former Governor, Senator Togiola T.A. Tulafono pointed out the salary for the CEO is $119,995 [with fringe benefits it increases to $134,348], which is $5 dollars away from the Lt Governor’s salary, as indicated by law.

LBJ Board Chair Dr Maloamaua Tuiolosega explained the previous CEO’s salary was $135,000 however with Moefaauo the board reviewed and compared it to the salaries of the physicians working at the hospital.

 “At the moment, at the hospital, there are [administrators] making more money than the doctors.

We are trying to re-adjust the salaries but that is prohibited by law and the Board agreed to hire him on a $120,000 salary as there are others making $160,000 but those salaries should be reduced to be lower than what the CEO is making,” said Maloamaua.

“However I am not aware of a law that caps salaries for CEOs of semi autonomous government agencies,” said Maloamaua.