Government Makes Initial Payment to Pafford Medical Services Amid $10 Million Debt Crisis

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.”