Soaring healthcare costs threaten to bankrupt Government unless the One Bermuda Alliance can put the brakes on “a runaway fast car”, Finance Minister Bob Richards said today.

The Minister warned an ageing population is putting increasing demands on health services, with a decreasing number of younger, healthier guest workers contributing towards the cost.

Bermuda Hospitals Board is struggling to get to grips with the expense of its new acute care facility, Mr Richards said, and residents face accepting “the best healthcare facilities our limited resources can provide”.

The Ministry of Health’s budget of $194.8 million makes it the highest spending department in Government, although that figure is down on the original estimate of $199.3 million for 2013/14.

Reading out his Budget Statement, Mr Richards told the House of Assembly: “The whole problem with containing the rising cost of healthcare is of major concern and a threat to Government’s attempts to wrestle its finances under control.

“Demographics are working against us from a cost perspective, as the Bermudian population gets older and puts greater demands on healthcare services.

“Many of the younger healthier guest workers, whose health insurance premiums helped finance services provided to older residents, have returned home, compounding the problem.

“The Bermuda Hospitals Board, which comprises 40 percent of all healthcare costs, continues to grapple with the costs of delivery of service and the costs of the new acute care facility.

“It is clear that there is a systemic problem with the costs of delivery of healthcare, like a fast car with no brakes. Government is actively analysing the problem and is formulating plans on how to install brakes on this runaway.

“Otherwise healthcare costs threaten to bankrupt the Government. To avoid that calamity we must strive to have the best healthcare facilities our limited resources can provide.”