Uninsured Virgin Islanders with an outstanding debt to the Gov. Juan F. Luis Medical Center can receive a substantial discount to their bill if they pay in full in June.
Under the debt amnesty program launched by the hospital Monday, bills that are less than one year old will receive a 40 percent discount, while those over one year will receive a 50 percent cut. Bills incurred for services this month will also be eligible for the 40 percent discount.
In order to claim the discount, bills must be paid in full before the end of the program on July 3.
The program is for self-pay patients, those who did not have insurance to cover part of their bill.
“We feel it’s an opportunity to recoup a lot of needed funds for our cash-strapped organization,” said Deepak Bansal, the hospital’s chief financial officer.
The move comes at a time when JFL is struggling with it’s own finances. The hospital has had a negative monthly cash flow every month this year and Bansal said that at any given time JFL only has enough cash on hand to operate the hospital for a single day.
He warns that with so little financial wiggle room, any unexpected hiccup in their finances could cause problems for the hospital.
For example, Medicare last week withheld a portion of a payment due to the hospital, putting JFL in danger of not being able to make payroll. The hospital required an advance of their June appropriation from the central government in order to pay their employees.
Bansal said the program, if successful, could improve the hospital’s short-term cash situation and provide some relief. He is hoping to collect $500,000 through the amnesty program.
“It’s a little aggressive of a goal given the economic climate of the island, but I think it’s achievable. There’s a lot of outstanding receivables out there,” he said.
“These are funds that are badly needed in the hospital,” he added.
JFL had hoped to start the amnesty program May 1, but it was delayed due to a software glitch with their billing service.
Patients with outstanding accounts will receive a new bill in the mail this month with information about the program. Patients may also call Account Services Inc. at (340) 773-4401 to learn more about the program.
Bills can be settled with the cashier at the hospital or with a credit card over the phone.
