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