negative publicity, Bermuda's hospitals achieved many important goals.

That was the view expressed by Bermuda Hospitals Board chairman Mr. Robert N.

Tucker and executive director Mr. Hume Martin in the board's 1992 annual report.

The report, tabled on Friday in the House of Assembly's first session for the year, revealed that the Board's net income continued to decline.

For the year ended March 31, 1992, the Board had net income of $1.2 million -- down from $1.8 million the previous year.

The drop was attributed to increased costs linked to King Edward's new and larger physical plant, approval of hospital rates in 1991/92 below the level of wage increases, shorter hospital stays by patients, and the closure of up to 30 Extended Care Unit beds during construction of the new unit.

The board said it expected further erosion of its net income this year given Government's decision to freeze the indigent, aged, youth and St. Brendan's subsidies at 1991/92 levels.

"This freeze forces the Board to absorb wage increases of 4.75 percent for the BPSA (Bermuda Public Service Association) and the arbitrated award of six percent for the BIU (Bermuda Industrial Union) without offsetting revenue increases,'' the report stated.

"The Board is also faced with increasing costs associated with providing uncompensated care to growing volumes of elderly and indigent patients.'' The report also highlighted the accomplishments of both hospitals, including: The successful completion of the renovated and expanded Extended Care Unit at King Edward; The successful CARE campaign which surpassed its $5-million goal; The opening of the new Child and Adolescent Psychiatric Service at St.

Brendan's; and Government's support of St. Brendan's proposal to develop group homes for some of its independent patients.

But it did not hide the major misfortunes which hit both hospitals.

Legionella was found in the water system of St. Brendan's and caused several staff and patients to become ill, it noted.

St. Brendan's administrator Mr. George Simons said the hospital was able to contain the outbreak and no staff or patients experienced serious complications.

"We worked closely with the health inspectors to prevent a recurrence of this problem,'' Mr. Simons said, adding that regular cleaning procedures have been implemented for all high risk areas; automatic chlorine injection pumps have been installed and daily water readings were taken to maintain acceptable levels of chlorine in the water.

But King Edward's problem was not so easy to solve.

Public confidence in the hospital was shaken by separate inquests into two deaths which occurred in 1990/91.

In the inquest verdicts of both Ms Wendy Wilkinson, 34, and four-year-old Justin Fisher, it was ruled that their deaths were "aggravated by a lack of professional care''.

And King Edward was urged to review its procedures.

The hospital had begun to work on this, the Board said.

The report noted that amendments were made to the Bermuda Hospitals Board Act to provide for greater accountability of the medical staff to the Board; a Board Patient Care Committee was created to focus exclusively on quality of care issues and improving staffing ratios; and state-of-the-art monitoring equipment was placed in critical care areas.

"We are confident these measures will have a long lasting positive effect on the quality of care,'' the Board chairman and executive director said.

"We are equally sure that these measures will not remove the risks associated with hospital care. The possibility of adverse outcomes as a result of hospitalisation is always present whether in Bermuda or overseas.

"Notwithstanding negative publicity associated with these cases, we believe that the public understands that both King Edward and St. Brendan's continue to provide good quality care by international standards.''