The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

The Minister of Health yesterday defended the Minnis administration’s decision to cut National Health Insurance's (NHI) budget by two-thirds, telling this newspaper: “You ought to spend what you earn."

“I wish we could spend $500 million, Dr Duane Sands told Tribune Business, following a 'Meet the Minister' breakfast hosted by the Bahamas Chamber of Commerce and Employers Confederation (BCCEC. "The truth is that any responsible manager pays close attention to revenue and spending.”

NHI's budget for the 2017-2018 fiscal year has been cut to $40 million, with $15 million allocated to both primary and catastrophic care, and $10 million to finance the NHI Authority's creation. This compares to the $124 million provided under the former Christie administration, which has left the Bahamas Insurance Association (BIA) and others questioning 'how the sums add up' and if the scheme can be made to work.

Dr Sands previously told Tribune Business that the Minnis administration had to identify funding for NHI, after the former government failed to sequester - or allocate - the $100 million for the scheme's primary care phase and $24 million for catastrophic care. NHI's launch, prior to the general election, was being financed from the Consolidated Fund into which VAT and all other taxes are paid.

Emphasising that overall Budget constraints were restricting NHI funding, Dr Sands said: “We are a country awash in debt, and no matter how valuable the service being provided is, you ought to spend what you earn. Every single ministry can give justification for another $100-$200 million but, ultimately, the people who pay are the people of the Bahamas.

"How much more of a burden can they bear? We have tried to be responsible. We went to the Bahamian people and told them we were going to be borrowing $722 million. How do you think they would feel if they were asked for $800 million, $900 million or $1 billion. We have to make a decision where it fits into the Budget. That is called prudence, judgment, wisdom."

Dr Sands was yesterday unable to place a figure on the total sum paid out in NHI benefits to-date. “We have been paying providers for clinical services provided to patients, and I have been looking at amounts paid to individual providers, but I don’t have a total so far," he added.

Dr Sands said that while there has been some uncertainty regarding changes to NHI under the Minnis administration, he expected that to lift as the Government ramps up its educational campaign.