The Bermuda Hospitals Board is expected to run out of cash “in the near future” — and must find $40 million to pay for additional costs owing to the new acute care wing during the coming fiscal year.

Minister of Health, Seniors and Environment Jeanne Atherden told the House of Assembly on Monday evening that the BHB has major financial challenges.

Speaking during the budget debate, she said: “Last year the minister reported on the dire financial situation being faced by Bermuda Hospitals Board. It was, at that time, predicted that Bermuda Hospitals Board would run out of money in the current fiscal year.”

She said “This clearly was not an acceptable position so it worked hard to manage its cash and prolong, as far as possible, the time when it would become cash delinquent.

“The minister said that measures were put in place rapidly.

“A ten per cent reduction in operating expenses was successfully implemented in the last fiscal year, and a 15 per cent cut was put in place for this fiscal year. The Bermuda Hospitals Board is well on its way to achieving this.”

However, Ms Atherden said the financial pressures are increasing. “On top of monthly payments of over $2 million per month for the new acute care wing, Bermuda Hospitals Board has responded to the national financial crisis the Government is dealing with, even though this has significantly reduced its revenues.

“Last year, the Bermuda Hospitals Board forecast it was going to run out of money at the end of 2014.

“It has taken all the steps it can, and while it has been able to postpone this day, at some point in the near future cash will be exhausted.”

She said the BHB faces further problems. “In the coming year there are some uncertainties which will have to be managed. The coming on stream of the new acute care wing is a very welcome event for the country as a whole, but as we all know the facility will have to be paid for. The additional costs per annum of the new acute care Wing to the Bermuda Hospitals Board will be in the order of $40 million.”

The minister said: “This amount is too great to be absorbed by the Bermuda Hospitals Board and it’s unfair for the public to expect to benefit from the new facilities without any additional charges.

“The Bermuda Hospitals Board, the Bermuda Health Council and my ministry are carefully examining the options with a view to bringing forward proposals shortly.”

Ms Atherden said that hospitals around the world face the same difficulties that the BHB is facing. “What is different is that the Bermuda Hospitals Board delivers Bermuda’s only medical and mental health hospital services. It has to provide a wider range of services to the community than most other hospitals as there are no other options, and it is the place of last resort for people who cannot get access to healthcare anywhere else.”

• For full ministerial statement, click on the PDF file under “Related Media”.