With a budget of more than $131 million, the Ministry of Health and Family Services once again walked away with the largest slice of the spending pie yesterday.

"Few things are more precious than one's good health," Finance Minister Eugene Cox said in his statement to the House yesterday.

"In keeping with our promise to improve the quality of health services and the access to care, Government has released additional resources to the Ministry of Health and Family Services."

The Ministry's budget now accounts for 22.5 percent of $585.5 million earmarked for current expenditure in Budget 2002 and the funds represent a six percent increase over the previous year.

"A large share of the increase, some $4.2 million, represents higher subsidies to King Edward VII Memorial Hospital (KEMH) for patient care of the youth, seniors and the indigent," Mr. Cox said.

The statutory hospital subsidy grant for KEMH increased from $47 million to nearly $50 million while St. Brendan's grant remained stable at $22 million.

The Budget also notes that Government hopes to save between $8.5 and $15 million by redesigning the reimbursement system for the hospital, physicians and other health care providers.

Yesterday, Health and Family Services Minister Nelson Bascome said a report on how exactly this process will be streamlined is still under preparation.

"A number of areas are expected to show savings," he said.

"For example, Government is considering redirecting the current full-coverage health subsidy for children under age 16.

"We're finding that a number of children have double coverage because they are also covered by their families," he said.

However, yesterday child advocate Sheelagh Cooper said the Ministry should tread lightly on this decision as 20 percent of Bermuda's children live under the poverty line.

"Full health coverage for Bermuda's children has been one of the country's greatest achievements," Ms Cooper said. "As long as funding remains in place for the children who need it, hopefully that (achievement) will not be lost."

The Lady Cubitt Compassionate Association - which assists with costs of overseas medical treatment for Bermudians in financial need - had their grant increased to $1.7 million this year from $1.34 million.

Mr. Bascome said while the hospital is hoping to have an MRI (magnetic resonance imaging unit) of its own this year which will reduce the need for many patients to travel overseas for this testing, many may still have to travel overseas for surgery.

"We want to ensure funding is there when it is most needed," he said.

Significant new funding was also dedicated to the Family Services side of the Ministry as well, with a 35 percent increase in the Child and Family Services' budget.

A rollout $1.8 million has been set aside to cover new staff and operational costs for the Alternatives to Incarceration (ATI) programme - with provisions made for 11 new Probation Officers - which includes $850,000 for the National Drug Commission to support its ATI role.

The Department of Financial Assistance will receive an additional $1.2 million this year.

"The main beneficiaries of this increase will be senior citizens and persons who are temporarily unemployed," Mr. Cox said.

A provision for an Investigation Officer for Financial Assistance has also been included "to ensure that abuse of the system is minimised", he added.

"We want to ensure that the benefits and assistance are provided for those with a genuine need, not for able-bodied persons who can obtain employment."

An extra $100,000 has also been designated for foster care fees and $114,000 in additional monies is earmarked for the National Office for the Disabled.

Under capital works in the Budget, the Ministry will concentrate on two projects announced last year - the construction of a replacement seniors' rest home for St. George's (see seniors story) and a treatment facility for troubled youth.

Yesterday, Minister Bascome denied that either project had been put on the back burner.

"Those are number two and number three in terms of Government priority for capital projects behind the new Berkeley school," Mr. Bascome said.

Each project has been earmarked for $250,000 of this year's spending primarily for design fees.

The residential treatment facility for troubled youth is in the advanced design stage, and Mr. Bascome said the Ministry has submitted plans for Planning approval.

The 32,000 square foot facility has been designed to accommodate 40 troubled teens.