Bryan defended use of $39 million Medicaid reimbursement for hospital and WAPA obligations

Gov. Albert Bryan Jr. said on May 22, 2019, that his administration used a one-time $39 million Medicaid reimbursement to help address outstanding hospital obligations tied to the Virgin Islands Water and Power Authority.

In a statement released on May 23, Bryan said the funds were distributed with the cooperation of then-Finance Committee Chair Donna Frett-Gregory, then-Senate President Kenneth Gittens, WAPA and the hospitals. He said the money was used to address debts owed by Gov. Juan F. Luis Hospital and Roy Lester Schneider Hospital.

Bryan said the hospitals' utility obligations were in the tens of millions of dollars and said paying down those debts was intended to help stabilize WAPA and avoid a larger increase in electricity rates.

The statement also criticized a proposal by the new Senate majority to use the one-time reimbursement for employee raises, arguing that raises are a recurring expense that could not be sustained with a one-time payment. Bryan said in the statement that Juan F. Luis Hospital had $54 million in outstanding vendor debt, including $13 million payable to WAPA.

Official source: https://www.vi.gov/governor-bryan-issues-statement-on-proposed-use-of-39-million-medicaid-reimbursement/