Ministerial Statement by the Honourable Jeanne J. Atherdene, CA, CPA, JP, MP
Mr Speaker and Honourable Members,
I stand before this Honourable House to table the Bermuda Hospital Board Annual Report 2012 and to provide an update on their annual reports. Mr Speaker, we are all aware that BHB represents 43% of total health spending by the Island, so we recognize the importance of BHB’s operational and financial reports. I’m therefore very pleased to bring forward this update. Mr Speaker, the 2012 Annual Report was delayed by an official review requested by the Office of the Auditor General.
Recommendations from that review have been implemented. I am very pleased to tell you that an unqualified audit opinion has been achieved for the fiscal year ended 31 March 2012. Mr Speaker, with the publication of the 2012 report before you, BHB’s public reporting obligation will still be three years behind. Hard work continues to bring BHB up to date. Mr Speaker, as this Honourable House will be aware, BHB is responsible for the Island’s hospitals: King Edward Memorial Hospital VII Hospital (KEMH), The Mid-Atlantic Wellness Institute (MWI) and the Lamb Foggo Urgent Care Centre. KEMH is funded by private and public health insurance payments, Government subsidies and, to a lesser extent, by direct payments by uninsured individuals. The Mid-Atlantic Wellness Institute is financed primarily by the resources provided by an annual operational grant from Government. The 2012 Annual Report discloses that BHB started to experience financial challenges in 2012, with a $4 million deficit. This was due to the economic downturn and the introduction of caps on
the amount of revenue BHB could charge private insurers. It was also caused by BHB fee rises that were below the inflation rate, and Government restricting the amount it could pay under subsidy. Despite this, Mr Speaker, you will see many improvements were still achieved in the provision of high-quality care for Bermuda, funded by the previous years’ $17 million surplus. Mr Speaker, this Annual Report also identifies how work began on addressing the financial challenges. Efficiency measures were implemented as part of BHB’s preparation to meet the financial obligations of the planned new Acute Care Wing. BHB carefully reviewed its expenditure, started to introduce salary and vacancy freezes, and postponed vital maintenance work. It began to drive down expenditure on supplies and other overhead costs.
Mr Speaker, this story of cost savings and care improvements in our hospitals will continue as further annual reports are audited and brought before you. BHB’s efforts have delivered 10 per cent, 15 per cent and 5 per cent reductions in budgeted expenditure over the past three years.
Thank you, Mr Speaker