Men tied to governor’s campaign profiting from MedHealth contract

The men behind the company that is profiting lucratively from Guam Memorial Hospital’s collection of patient revenue have close ties to Gov. Lou Leon Guerrero, her administration, and her campaign.

According to the affidavit of ownership of MedHealth Solutions, the company is owned by Rene Ramos, Paul Pineda, and Glenn Hermes. Mr. Ramos is no stranger to government contracts in both Guam and the CNMI. The businessman has raked in millions in revenue from both federal and local funds, during and before the pandemic. His main business, MedPharm, supplies pharmaceuticals to Guam Memorial Hospital.

But that isn’t all. Mr. Ramos also owns the RanCare building, which the government of Guam leased via emergency procurement to house several Department of Public Health and Social Services offices. He also is listed several times as a vendor of medical supplies and equipment in the federal spending rolls of both the governments of Guam and the CNMI. This is not to mention Mr. Ramos and his company are hefty contributors to the governor’s campaign for public office.

Mr. Hermes is a Texas businessman, who operates the technology company whose software the hospital now uses to navigate the complex medical billing process. That process has come under fire from some GMH patients who claim their tax refunds have been garnished in error due to faulty billing by GMH since MedHealth came on board.

However, it is Mr. Hermes’s ties to Guam that have raised eyebrows. The three men listed on the affidavit of ownership may not be the only people benefitting from the MedHealth contract.

Mr. Hermes’s former associate is superintendent of education Francis Santos, who also has been the chairman of the governor’s campaign committee.

A stipulation in the MedHealth contract with GMH states that anyone under the contract, including employees and subcontractors of MedHealth, cannot also be employed with the government of Guam.

Kandit for several days now has asked and repeatedly followed up with Mr. Santos whether he has ever or continues to benefit from the MedHealth contract with GMH. Kandit also has asked GMH legal counsel Jeremiah Luther and spokeswoman Cindy Hanson to either confirm or deny Mr. Santos’s relationship with MedHealth.

Neither Mr. Santos, Mr. Luther, nor Ms. Hanson have replied to our inquiry.