The Government of the Virgin Islands has made an initial $2.5 million payment to Pafford Medical Services in an attempt toward tackling the nearly $10 million debt that recently caused the company to suspend its operations in the territory.
This payment, which was appropriated by the V.I. Legislature at the request of Gov. Albert Bryan Jr., covers services provided to the Caribbean Kidney Center from October 2023 through September 2024, with an additional $500,000 expected from the General Fund, according to a Government House release Friday.
The payment comes after Pafford, a key provider of emergency medical services in the territory since hurricanes Irma and Maria, abruptly withdrew its staff earlier this month due to unpaid bills, leaving a critical gap in the territory’s healthcare system. In an interview with the Source Friday afternoon, Health Commissioner Justa Encarnacion confirmed that the government is committed to making monthly payments until the debt is fully satisfied. “They haven’t specified a fixed amount for each payment, but we’re dedicated to continuing these payments until the debt is cleared,” Encarnacion said.
The substantial debt is part of a broader financial struggle faced by the Virgin Islands government, with many vendors awaiting payment. “It shouldn’t be a surprise,” Encarnacion said, noting the government’s ongoing cash crisis when asked how the debt continued to accumulate without payment. “We’ve been managing payments on a month-to-month basis, especially for critical services like those provided at the Caribbean Kidney Center.”
Though it was reported last week that the Caribbean Kidney Center was closing due to non-payment, Encarnacion said this is not currently the case. “The Kidney Center remains operational, with nurses and technicians showing up daily. We’ve had ongoing communication with Pafford, and while the situation is challenging, the center is not closing,” she said.
Pafford was initially contracted under emergency circumstances to provide essential medical services after the hurricanes and throughout the COVID-19 pandemic. However, as federal funds that supported these services have been exhausted, the financial burden has shifted entirely to the local government, making it difficult to sustain Pafford’s services. In his release Friday, Bryan emphasized the administration’s commitment to healthcare in the territory, stating, “Our administration has been steadfast in expanding and improving access to critical medical services over the past five years, including the enhancement of diabetes and dialysis care. We recognize the essential role that Pafford Medical Services has played in providing emergency care during our most challenging times, and we are grateful for their partnership.”
Speaking to the Source, Encarnacion also highlighted the Health Department’s efforts to fill the gaps left by Pafford’s exit by recruiting local and off-island medical staff. Three nurses from Pafford have already been hired to work at Eldra Schulterbrandt Mental Health Facility on St. Thomas, with further recruitment efforts underway. “We’re working to find more sustainable, locally managed solutions,” Encarnacion noted, acknowledging the financial strain of maintaining clinical staff, particularly after federal support ended.
In addition to addressing the immediate debt to Pafford, the Virgin Islands Legislature has allocated $1 million each to the Governor Juan F. Luis Hospital and Schneider Regional Medical Center to enhance staffing and infrastructure, particularly for dialysis services. These investments are part of a broader strategy to ensure that critical healthcare services remain available to the territory’s residents, according to Government House.
Meanwhile, Health is also working on preventive measures, including continuing to support the Mobile Integrated Health Team managed by Pafford, which is aimed at reducing hospitalizations for chronic conditions like diabetes. Encarnacion mentioned that they have requested $400,000 annually to sustain these services as part of the broader budget.
Encarnacion added the department continues to keep a handle on the situation, particularly at facilities like Eldra Schulterbrandt, where staffing has been stabilized through overtime and reassigning nurses from other areas. “When something like this happens, there’s naturally a level of panic and concern, but we’re focused on balancing immediate needs with long-term solutions,” she emphasized.
In the event of a health emergency, the Health Department will take the lead in coordinating care across all healthcare agencies in the territory, ensuring that critical services like those at the Caribbean Kidney Center continue uninterrupted, Encarnacion said.
