Grants to Government of Guam for Health Care Needs

Advice was requested concerning the use of funds appropriated for grants to the Government of Guam for acquisition of a privately owned hospital. There is no statutory authority for using the funds solely to repay creditors of the private owner of the hospital; the funds may be used by the Government of Guam only to purchase an unencumbered title to the hospital. The purchase price of the hospital must be fair both to the owners and the government and cannot be unreasonably inflated to cover the debts of the private owner.