The Guam Legislature’s Committee of the Whole moved forward on a bill to direct roughly $19.7 million in bond‑refinancing savings to the Guam Memorial Hospital Authority (GMH), advancing the measure to the third‑reading file after lawmakers secured an amendment that allows the hospital flexibility to reprogram funds for other critical capital improvement projects.

Sponsor Senator Sabrina Salas Montanani opened the hearing by urging colleagues to approve the amendment and the bill. “This is about the patients depending on GMH every day and the employees who show up every day when resources fall short,” she said, asking senators for their support.

Department of Administration representative John Byrne read a letter into the record confirming the source of the money. Byrne said the “debt‑service payments correctly stated in the amended bill as $19,765,714 is the actual reduction in expenditures already appropriated under Public Law 38‑60,” and that DOA and the Bureau of Budget and Management Research view the savings as a viable appropriation source for GMH.

GMH officials described a FY26 capital improvement list grouped into six categories—structural and architectural work, utility systems, alternate care sites, medical equipment, information technology, and a medical transport vehicle—and asked the legislature for authority to reprogram funds among listed projects when procurement realities change. GMH gave an example of an equipment protection need: a UPS (uninterruptible power supply) for a recently received fluoroscopy unit with an estimated cost of about $90,000 to prevent damage in a power fluctuation.

Several senators pressed GMH on transparency and prioritization. “Why is everything lumped together?” asked Senator Law, who sought a clearer rank‑order of projects and asked which items were already funded elsewhere. GMH replied that some items—such as an electrical panel replacement and network infrastructure—are funded from a separate $40 million appropriation and that grouping is intended to allow the hospital to dedicate a full category allocation to a priority project if bids exceed line‑item estimates.

Senators also raised past audit findings about revenue‑cycle management (RCM). Senator Barnett recited portions of an Office of Public Accountability audit that questioned previous RCM procurement and cited about $4.9 million in billed costs tied to alleged contractor underperformance. GMH said the prior agreement was a limited consulting contract and that the current RFP seeks a full, on‑site RCM manager with national standards, key performance indicators and stronger transparency. The hospital said an RFP for a new RCM manager was active at the time of the hearing.

Lawmakers asked about staffing and potential reductions in force; hospital leadership said the board had authorized a legal reduction‑in‑force process if necessary but emphasized ongoing efforts to find $10 million in savings through operations, improved systems and outsourcing where appropriate. “We’re looking at software upgrades…we’re trying to be responsible about it and decrease the waste,” GMH leadership said when describing expected efficiencies.

During the amendment phase, Senator Montanani proffered and the body adopted a new section authorizing the appropriation to be expended for other critical capital improvement projects not specifically enumerated in the act, provided total expenditures do not exceed the aggregate appropriation. Multiple senators supported the amendment as a practical step to handle procurement contingencies and long lead items.

With the amendment adopted, Senator Montanani moved that bill 187 (as amended) be placed on the third‑reading file; there were no objections. The vice speaker then moved to rise from the Committee of the Whole with the recommendation that bills 186‑38 and 187‑38 (as amended) be placed on the third‑reading file; the motion carried without objection and the committee rose.

What happens next: the bill, as amended, will appear on the third‑reading calendar for final floor action. The hospital and administration told senators they will provide additional project detail, procurement status and reporting as projects proceed.