Medipole Hospital in New Caledonia is demanding an upfront payment from Vanuatu's Port Vila Hospital before it receives any patients sent for treatment.
The hospital in New Caledonia is concerned at an already burgeoning debt for services that has not been paid by the Vanuatu Government.
Medipole Hospital says it's owed over 41 million vatu, or $US359,000 dollars, for medical treatment received by government leaders and senior civil servants.
Now it's asking for pre-payment of ten million vatu, or approximately $US87,000 dollars, before additional patients can be sent from Vanuatu.
Vanuatu's deputy Prime Minister, Ishmael Kalsakau, has told parliament that the Council of Ministers has agreed to sort out the outstanding money owed to the Medipole Hospital.
Photo file RNZ Pacific Caption: Medipole Hospital in Noumea