Pafford Medical Services declared Wednesday that it would be ceasing operations in the U.S. Virgin Islands, effective immediately – a decision attributed to an unpaid bill of nearly $10 million owed by the government.
Pafford Chief Operating Officer Clay Hobbs issued a press release mid-afternoon, stating that about 40 of the company’s employees—who provide critical services such as dialysis, ambulance, and integrated mobile health care—would begin leaving the territory. Speaking from Florida, where he was assisting with the Hurricane Debby response, Hobbs expressed deep regret over the decision.
“Since 2017, when we responded to the USVI to assist with hurricanes Irma and Maria, Pafford has been dedicated to offering exceptional medical services and ensuring the health and well-being of the residents and visitors,” Hobbs said. “Our team of highly skilled medical professionals has worked tirelessly to uphold the highest standards of healthcare, often going above and beyond to meet the needs of the communities of the USVI.”
The underlying cause of Pafford’s sudden departure is the substantial debt owed by the government – among them, invoices that Hobbs said have been due for more than a year.
“We don’t make any money providing the service, but we feel compelled to help the V.I. residents. Since we’ve made this announcement, no one has contacted us—and we’ve been sending default notices and demand letters for months now and calls and texts over the past year,” he said.
The financial strain has reached a breaking point for the company, which Hobbs emphasized does not take the decision lightly. “The plea for payment is long gone,” he said. “This is the result of not paying.”
Though Pafford had exited its contract on St. Thomas-St. John and scaled back services on St. Croix within the past week, Hobbs highlighted the services Pafford still provides, noting that their mobile health integration unit serves 100 patients on St. Croix alone. “So many people can’t leave the island for healthcare—no one is going to be checking on those patients tomorrow morning,” he said.
In response to Pafford’s announcement, Government House issued a statement acknowledging the company’s decision. In a subsequent phone call with the Source about what the health care landscape will look like Thursday morning, Communications Director Richard Motta Jr. said, “At the end of the day, the ambulances will run in an emergency and patients who need critical care will have access to that care.”
“The Government of the Virgin Islands assures the public that the transition will be handled with the utmost efficiency to ensure minimal impact on the delivery of emergency services. The commitment to the health and safety of all Virgin Islanders remains steadfast during this period of transition and into the future,” Wednesday’s release said.
Pafford was initially contracted during the aftermath of Hurricanes Irma and Maria and the COVID-19 pandemic to bolster the territory’s emergency response capabilities. The arrangement with Pafford was “always intended” as a temporary measure, according to Wednesday’s statement from Government House, and now the financial burden of maintaining these services without federal funds is unsustainable.
“The funding for Pafford’s services was supported by federal funds, which have since been exhausted. With the cessation of this federal support, the financial burden has now shifted to the Government of the Virgin Islands’ local funding, which is not able to sustain these elevated costs on a permanent basis,” the statement read. “We are grateful to Pafford Medical Services and their staff for their service during a critical time and extend our deepest appreciation to Pafford and their dedicated team for their exceptional service.”
Regarding the outstanding bill, “the Government of the Virgin Islands is working to address the arrears owed to Pafford and is committed to responsibly resolving all financial obligations,” according to Government House. Motta added that additional updates on the services Pafford provides to the territory will be addressed further in the upcoming days.
