HSA is not subsidised, says management
(CNS): By turning its first ever profit, the Cayman Islands Hospital will not receive a subsidy this year from the public purse, officials say. The board and management said last week that although the hospital receives money from the public purse, it is not a subsidy but payment to cover the cost of services requested by government. Currently the hospital costs around $80 million to run, and around $30 million of that comes directly from the budget in output payments for things such as health care for children, the operation of district clinics and the ambulance service. The rest of the revenue for running the country’s government health facility comes from insurance payments and direct fees from paying patients.
Lizette Yearwood, the hospital’s chief executive officer, explained at a press briefing last week that many people still believe that the money the hospital receives from government is a direct subsidy, but this is not the case. She said that in the past when the hospital ran at a loss government had made direct injections of cash to subsidize the deficit but over the last few years the hospital’s direct subsidy had decreased to the point where this year the facility made $2.3 million in profit, which would be reinvested.
As the hospital seeks to reinvest future profits into better medical facilities and services, officials from the board and the hospital management team explained that it would not only be improving the quality of its clinical services but it would help government save more money by reducing the number of overseas referrals that government pays for, as the hospital was able to handle more and more medical situations on island.
The hospital is also expected to make a profit again in 2010/11 of just over $1.1 million, but it will still receive just under $30 million from government. According to the output payment documents, the HSA receives funds to run a number of services it either would not offer and to subsidize the patients who have no insurance cover, not to subsidize the hospital. The government pays for mental health services, school health services, nurse trainingand even accident and emergency.
Category: Health
Call it whatever you want it’s a subsidy!!
Consumption subsidies
Governments everywhere provide "consumption subsidies" in a number of ways: by actually giving away a good or service, providing use of government assets, property, or services at lower than the cost of provision, or by providing economic incentives.
In most countries, consumption of education, health care, and infrastructure (such as roads) are heavily subsidized, and in many cases provided free of charge.
Why is it called the "George Town" Hospital and not the "Cayman Islands" Hospital?
I have to say congrats to CEO, Lizzette Yearwood, CNO, Hazel Brown and ALL of the hard working management and nursing staff at the George Town Hospital.
This hospital has come a long way since becoming an "Authority" and it has shown that to be true with the recent publication of the "first ever profit"!!!
I am from the US and I have been in Cayman many times and also a patient at the hospital and I can say that I was very impressed by the professionalism, medical service, and genuine care that I received there.
So, good for you!! This new is obviously a sign of the hard work of ALL the staff that make a successful, profitable facility.
I will continue my visits to this gem in the Caribbean and will feel confident that if I would ever need them (but hoping not!) I can rest assurred that I have faith in a very special team of professionals!
Thanks!
Job well done HSA!…
I utilize the services at the hospital and have found the staff and services to be very good and always striving for improvement.
Considering our size as a small island, we truly have much to be grateful for with our local Health Services including the HSA.
I think the story is a bit misleading. The CIG has demanded that the HSA provide some services which otherwise would not get provided, and the HSA bill the CIG for it.
So yes the HSA receive funds from the CIG, but its not a subsidy. It is payment of a bill.
> it is not a subsidy but payment to cover thecost of services requested by government.
"A rose by any other name is still a rose."
It is payment for services!!! the Govt estimates it every year and it is included in the budget. Now whether or not the true figure is reconciled at the end of the year is another story. I mean if they overpaid, will HSA issue a reimbursement?