Hospital in Guam Sues Collection Agency

A local TV station is reporting that the largest civilian hospital on the island of Guam has filed a lawsuit against a collection agency it contracted with to handle missing payments.

KUAM News in Dededo, Guam – the island’s largest town – reports that Guam Memorial Hospital has filed a civil suit against United Pacific Collection Agency for failure to remit proper payment. The hospital claims that the collection agency owes it “a significant amount of money.”

The hospital contracted with the collector last year and forwarded some $4.1 million in accounts to the firm. GMH claims that they have received only $272,000 back and have gotten numerous complaints from former patients claiming their accounts were cleared through the agency.

The suit comes at a time of controversy for the hospital as it deals with complaints of overcrowding and is involved in another lawsuit that claims the hospital owes thousands of dollars in attorney fees but refuses to pay.

Guam, located in the Western Pacific Ocean, is an organized unincorporated territory of the United States.