Aguon: ‘one of the most difficult realities’, GMHA continues to review potential layoffs
BY SKYLER OBISPO
Journal Staff
The Guam Memorial Hospital Authority announced that it is continuing to discuss potential layoffs and other cost saving measures to address the hospital’s precarious financial situation.
The Journal received a draft copy of a board of trustees resolution on Jan. 30 which states that GMHA management is to submit a detailed Reduction In Force Implementation Plan within 60 days of the resolutions enactment.
“GMHA is currently experiencing significant fiscal challenges, including projected budget shortfalls, increasing operational costs, and funding limitations that directly impacts the hospital’s ability to sustain current staffing levels,” the resolution read. “Management has conducted a thorough review of hospital operations, staffing patterns, and service demands, and has determined that a reduction in force is necessary to ensure financial stability and continued delivery of essential healthcare services to the community.”
The resolution also requires GMHA management to report periodically on the number of positions affected, services impacted, and cost savings achieved.
According to GMHA’s fiscal 2025 fourth quarter staffing pattern, the hospital employs approximately 1,257 full- and part-time staff.
The Guam Memorial Hospital. Photo by Skyler Obispo
In November 2025, the board adopted a resolution which provides the authority to develop cost saving measures to include what it calls a “workforce adjustment plan,” however GMHA told the Journal it is too early to say how and when the hospital will address potential budget shortfalls.
“Because planning is still underway, we are not able to share specific numbers or departments that could be affected. Any decisions moving forward would be approached with great care, with a focus on treating employees with dignity and minimizing disruption to patient care,” GMHA said.
Shortly following the Journal inquiry into the potential layoffs, GMHA issued a statement providing updates on its financial stability efforts and workforce planning.
“This is one of the most difficult realities a hospital can face,” said GMHA CEO and Administrator Dr. Joleen M. Aguon. “Our employees are not numbers on a spreadsheet. They are the people who comfort families, support patients, and keep this hospital running day and night. Every step forward is being approached with care, respect, and deep concern for our team.”
The hospital will continue to host town halls and regular staff meetings to share information and answer questions as planning efforts move forward.
This is not the first time GMHA has faced layoffs however.
In March 2003, GMHA laid off 100 employees, a move that then-acting administrator William I. McMillan said would save the hospital about $1 million per month.
That same year, the hospital began allowing the privatization of its environmental, food, and housekeeping services. mbj
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