Pago Pago, AMERICAN SAMOA — LBJ Hospital has indicated that it wants to take over the Hope Dialysis Center in Iliili — its doors closed on June 30, 2024.

The CEO of LBJ Hospital Dr Akapusi Ledua at a hearing of the Senate Health Committee last Thursday, reiterated what he had said in an email to concerned lawmaker, Faipule Larry Sanitoa, about the hospital’s long term plans “to decentralize the dialysis service and bring this service out to the community rather than the hospital.”

This plan, Dr. Ledua said, includes acquiring Hope Dialysis and building dialysis units — in the East and in the West “as our satellite dialysis units”.

“The plan further includes home dialysis service which about 20% of our dialysis population can have,” he added.

Sanitoa had reached out to Dr Ledua revealing how some of the patients of the Center were highly troubled by LBJ’s ability to meet their needs when HDC closed, revealed in a story Samoa News published on July 01, 2024.

In an update, this month, the hospital signed a MOU with Renasolve, Inc. thereby extending its dialysis service to village areas, pioneering a significant milestone in healthcare in American Samoa.

Renasolve, Inc. specializes in offering dialysis services throughout the United States and will allow LBJ Hospital to extend its dialysis service to rural (village) areas  — allowing delivery of such critical services within patient’s homes, and in community-based settings.

LBJ yesterday also announced the purchase of 10 additional advanced dialysis machines in direct response to the demand for dialysis services within the territory. (See story elsewhere in today’s Samoa News for details.)

At the recent Senate hearing, Dr Ledua said all 42 patients from Hope Dialysis Center are currently being treated at the LBJ Dialysis Clinic, and the hospital is moving to acquire the dialysis center and turn it into a satellite facility.

However, one of the shareholders of HDC reached out to Samoa News via email that they have not been contacted about any such sale/ purchase.

Samoa News was unable to verify exactly who all the shareholders of HDC are, but a suit filed against the HDC in 2022, said that HDC board members, John Wasko and Jean Letarte owned 10% and 7% respectively; while, Chris Fisher who was the CEO and President of the Board owned 50%. The American Samoa Venture Fund is also listed as a shareholder.

BACKGROUND

Hope Dialysis Center (HDC) was founded in 2018, and its owners included the center’s President of the Board and CEO, Chris Fisher.

There was a fallout with HDC’s board, in 2022, which took Fisher to court after he announced that the center was closing because it could no longer operate without Medicaid reimbursements.

In a press release, dated April 2022, discussing the closure, Fisher indicated that  “the only options left to keep HDC open would be to have legislation approved for Medicaid reimbursement after April 16.

“The other option is ASG could acquire HDC and use it as a dialysis facility for west side patients.

“Either would allow all patients and staff to remain.

“It’s up to ASG.

“We are willing to work with the government for the patients,” Fisher concluded.

On April 28, 2022 as reported by Samoa News in May 2022, a Temporary Restraining Order (TRO) against Hope Dialysis Center’s Chris Fisher, CEO and Chairman of the Board of Directors (BoD) was issued by the High Court of America Samoa, with the order that a hearing be set for the application for a Preliminary Injunction.

According to the plaintiffs, the TRO stops the center from closing its doors, which Fisher as CEO of HDC had announced in press releases distributed to media in April 2022, and will allow HDC to start paying down it’s bills, while continuing to serve it’s clients, who are dialysis patients.

The TRO lists plaintiffs as John Wasko and Jean Letarte on behalf of HDC, versus Fisher as the defendant. Plaintiffs’ attorney is Thomas B. Jones , Esquire of Jones & Associates, LLC while Togiola Tulafono, who is also a sitting local senator, is Fisher’s attorney.

John Wasko is listed as vice-President of HDC at the time of its incorporation in American Samoa on Oct. 16, 2018. He is also identified by Fisher in a directive to the Territorial Bank of American Samoa, dated on or about Mar 20, 2020, as holding a 10% interest in HDC; while Dr. Letarte holds a 7% interest.

Fisher in the same directive is identified as holding the majority stake in HDC — 50%. Three other shareholders are also noted, including the American Samoa Venture Fund (ASVF), which provided HDC with a $300K capital infusion.

Notable, ASVF is a a venture capital fund with the State Small Business Credit Initiative (SSBCI) that is managed by ASG.

In April of 2022, the local Attorney General’s Office pursued a course of action against HDC based on the Memorandum of Understanding (MOU) between the center and the ASVF, as well as “a demand for all damages to which ASG is entitled under applicable law.”

The pursuit of the course of action against HDC was based on a request from the local Department of Commerce (DOC).

HDC is in breach of the MOU, “because it has not fulfilled its clearly outlined responsibilities under section IV of the MOU,” according to the Attorney General, Fainu’ulelei Falefatu Alailima-Utu, at the time.

He noted that HDC’s non-compliance including, “but is not limited to the following issues each of which constitute breach of contract:

(i) failure to issue ASVF $300,000 of common stock,

(ii) failure to maintain DOC representation on HDC’s corporate board of directors, and

(iii) failure to provide required quarterly and annual financial statements prepared by an accountant licensed to practice in American Samoa on the timeframes specified in the MOU.”

The government’s case requested that HDC promptly return the $300,000 of funds received from the ASG (ASVF), immediately appoint the DOC Director or her designee to HDC’s corporate board, and provide all financial statements prepared by an accountant licensed to practice in American due from 2018 to the present.

Samoa News should point out that there have been no updates about the government’s suit against HDC, nor of any resolution concerning the TRO against Fisher.