shortage, The Royal Gazette has learned.

They bedded down in cots used for wheeling patients after operations to their wards.

The makeshift arrangement came as staff at King Edward VII Memorial Hospital battled last week with an overflow of patients.

And it followed January's closure of 12 beds on Perry Ward.

Hospital chiefs were forced into the move in a fight to trim costs.

The beds shortage has also meant cancellations for those wanting elective surgery.

In last month's Budget, the grant to King Edward and St. Brendan's was boosted by about $2.8 million.

Finance Minister the Hon. David Saul admitted King Edward had been hard-pressed to meet new spending targets after subsidy cuts.

He added: "The additional grant in 1993/4 restores the grant to an appropriate level for the categories of patients subsidised by the Government.'' These categories includes young people, old folk, and the needy.

The Bermuda Hospital Board's annual report 1992 highlighted cash difficulties.

It stated the board's net income continued to decline, with just $1.2 million being earned for the year ending March 31, 1992, down from $1.8 million in March 1991.

The report said the drop was partly explained by rising costs following hospital improvements, and rates below wage increases.

Yesterday Mr. Hume Martin, executive director of the Bermuda Hospitals Board, admitted patients had been forced to sleep in emergency.

"Last week we did have difficulties discharging patients, which led to an overflow of people,'' he said.

Mr. Martin said up to five people slept in the room one night.

The problem lasted for four or five days, although it has now been resolved, added Mr. Martin.

Patients slept in six-foot cots, normally used for wheeling them back to their wards after an operation.

"It is not convenient or satisfactory, but medical care was not compromised in any way,'' he said.

"We are monitoring the situation to prevent it from happening again.'' Moves being considered include discharging people more promptly; shorter stays in hospital; more outpatients examination; and better use of beds.

Mr. Martin pointed out there were constantly 15 to 25 people at the hospital unable to be discharged. "There is no alternative level of care available to them,'' he said.

Mr. Martin was reluctant to link last week's problem with the Perry Ward closures.

"We closed the beds as an economic measure, and were able to save small salary costs.

"We have had declining occupancy levels and need to effect economies.'' Mr. Martin pointed out the extended care unit had been given 13 extra beds.

"In actual fact, there were 25 new beds added to the hospital system recently.'' Mr. Martin stressed the problems faced by King Edward had to be put in perspective. They were faced by hospitals in many other jurisdictions, he added.