The Tribune

By KHRISNA RUSSELL

Deputy Chief Reporter

krussell@tribunemedia.net

HEALTH Minister Dr Duane Sands confirmed yesterday the government will delay the implementation of 500 fees at the Princess Margaret Hospital, which were to aid in increasing revenue generation for the state hospital.

Ahead of the 2018-2019 budget debate, Dr Sands said the fees were to be implemented come July 1.

However, in an interview with The Tribune yesterday, he said it was unlikely the fees would come into force by that date.

July 1 will also mark the first day Bahamians will pay the increased value added tax rate of 12 percent since the tax was implemented at 7.5 percent under the former Christie administration in 2015.

"I doubt it would be July 1," Dr Sands said when he was asked about the timeline yesterday. "We still need time to adjust the policy and get the kinks out. We also need to make a determination as to whether there will need to be an introduction of legislation for the fees.

"We anticipate there has to be an increase in revenue by the health care system to avoid a deficit, so this is still a priority for us."

He also said: "The health care system will have to make adjustments in order to ensure we can provide services at a high standard. It will definitively mean an adjustment in the fees and approach to the collection of fees from individuals who previously didn't have to pay but who had health insurance provided by the government."

Back in April, Dr Sands told Tribune Business many of the fees had been legislated and in place for more than 40 years, but were never enforced due to the perception that healthcare is free.

At the time, he said the Public Hospitals Authority faced an annual $28m funding deficit, adding the government's budget woes prevented this from being covered by Bahamian taxpayers. Dr Sands said he had little choice but to "bridge the gap" through new revenue measures and/or spending cuts.

While many Bahamians were demanding improved healthcare service quality, Dr Sands previously said they were often failing "to connect the dots" between such desires and how this was to be paid for.

He added that the government's political opponents were bound to exploit what will amount, in many cases, to fees equivalent "to 10 percent" of the cost of services provided. He said he would be "shocked" if the Progressive Liberal Party "admits fiscal responsibility is a good thing".

The PHA intends to charge morgue storage fees, among others, and will charge a penalty to keep bodies at the morgue beyond a specified time frame. The fees relate to a variety of PHA services.

Late last year, funeral directors protested the proposal, prompting Dr Sands to halt and review this plan along with hundreds of other intended fee changes.