Cayman Islands -- Feb. 20, 2008 -- A government motion passed in the House 15
February approved raising the fees charged by the Health Services
Authority (HSA) by 10 per cent.
However, even that will not cover the actual cost of providing services
at the authority's two hospitals and six district clinics. "Many of
these fees will still be well below the actual cost of the service,"
Health Minister the Hon. Anthony S. Eden told members, piloting the
motion in the House. The vote was 7-3.
Government will continue to subsidise healthcare at these
establishments, since there are many services for which the authority
cannot levy fees or charges. The Fees Law only allows the HSA to adjust
fees that are listed in the Health Services (Fees and Charges)
Regulations.
Minister Eden alluded to the long history of free, as well as
undercharged, health care services that government provides. Terming
the present move as an interim measure, he noted that Cabinet last June
granted approval for the HSA to implement a new "charge master," or a
master list of services and rates charged for their delivery to
patients.
The charge master contained a 10 per cent increase in the fees listed
in the regulations, as well as new fees to pay for provision of
services that were not chargeable. However, technical difficulties have
prevented the HSA from implementing the charge master so far, making it
necessary to amend the regulations to increase fees, he explained.
Minister Eden noted that there was never a good time to raise fees.
Healthcare costs, the world over, are increasing at a faster rate than
the economy.
"With an 8 per cent to 12 per cent annual increase over the past four
years, the healthcare industry continues to grow at a rapid rate," he
said. The cost of healthcare is the largest contributor to the GDP
(gross domestic product), he added.
Giving examples of costs, Minister Eden said that soon after assuming
office, government had to come up with about $1.7 million, since it was
found that pensions for those working in the public healthcare sector
had not been paid for some 18 months. Also, the HSA now faces the need
to upgrade some of its equipment.
The HSA has to maintain the highest standards of care, ensuring at the
same time that its operations are financially viable. Once the charge
master comes into being, the HSA will be one step closer to attaining
financial independence, Minister Eden commented.
And because the continued subsidising of the cost of all healthcare is
unsustainable, government is "facilitating a number of key
initiatives," as a move to keep healthcare affordable and accessible to
all in Cayman, he said.
He also noted that alternatives are being explored in order to create a
new healthcare model, which will focus on prevention and reduce
dependence on overseas providers.
For further information contact: Bina Mani
