The Bermuda Hospitals Board (BHB) is changing the way they charge for services, announced Health Minister Nelson Bascome in the House of Assembly yesterday.

"Last week the CEO of the BHB voiced concerns that the Island's hospitals will face difficult times as a result of expected cost increases in the health care system," he said. "The Ministry of Health has been actively involved in several initiatives that will support the BHB in their attempts to deal with the challenges resulting from the increased costs of delivering health care services."

Part of these initiatives was a review of the reimbursement system for physicians, the hospitals, and ancillary providers. As a result of this analysis the BHB examined the costs of providing care in both hospitals and identified the need to change the way they charge for services", said Mr. Bascome.

"Traditionally the BHB has charged a flat per-diem for inpatient services and costs have been averaged across the board," he said.

"Charges do not accurately reflect the costs of delivering services in all units of the hospital. For example, if a patient somes in for a minor medical procedure and another comes in for a major medical procedure, each patient is charged the same per-diem rate."

However now BHB will change the way it charges for both in-patient and out-patient services, said Mr. Bascome. "Once we have completed plans for restructuring the health care system and implement a new reimbursement system we believe these initiatives will significantly assist the BHB in dealing with their mounting financial challenges."

Mr. Bascome said the Ministry has also developed plans to better coordinate the administration of the long-term care system and improve administration of the Parish Rest Homes and other government-funded residential care facilities.

"During the coming year work on the St. George's Care Facility for seniors is set to begin," he said. "This should help to alleviate social admissions to the hospitals and long-term stay of seniors.

"We will continue to work towards the completion of the reform process in order to ensure that we have the best health care system possible for our current and future generations," he said.