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The Hospital Authority (HA) Board today (March 30) discussed and endorsed the proposed budget estimate of the Authority for the financial year 2006/07 and also the approach on resource allocation to clusters for the same year.
The HA spokesman said the Authority was encouraged by the Government's allocation for the coming fiscal year. "Compared with that of current year, the increase in funding not only reflects the continuous support and confidence from the Government, but also indicates that there will not be any further reduction in future allocation."
"The HA is committed to providing quality health care services to the community and will fully utilise the available resources from the Government. We will ensure the sustainability and development of the enviable public health care system of Hong Kong through the implementation of innovative programmes.
"The adjustment in the funding policy of the Government has clearly indicated its support to the Authority. We will continue to enhance our services in a more vigorous and flexible manner to build up public confidence and trust."
With the funding of over $27 billions for the coming year, HA is going to operate with the following major provisions as indicated by the Government:
* 1% growth in recurrent funding of $292 million to cover funding requirements for new or improved services and technology advancement;
* Continuation of the one-off funding of $200 million for the extension and regularisation of temporary jobs;
* Making recurrent the 2005/06 one-off funding of $550 million to strengthen infectious disease control and meet the additional demand for hospital services arising from an ageing population and population growth; and
* Additional recurrent funding of $100 million for the implementation of new initiatives, including the use of new psychiatric drugs, improved cancer care, haemodialysis provision, enhanced training for doctors, nurses and allied health professionals
In preparing for the financial budget of 2006/07, the spokesman said due consideration had been made regarding a number of key components. On personal emolument expenditure, over 300 Residents trainees, 500 registered nurses, 100 allied health professionals, and other supporting staff will be recruited for the total replacement of staff turnover.
"Furthermore, we have also taken into account the expenditure for other charges, which included increases in expenditure of 5% for drugs, 3% in utilities and 2% for medical supplies."
"On the part of income projection for 2006/07, HA is now actively exploring various means of increasing revenue sources, including both fee income and non-fee income initiatives, to generate additional revenue to meet operating expenditures.
"In order to achieve a balanced budget for 2006/07, HA has explored available sources of funding, which include the contribution to the Home Loan Interest Subsidy Scheme (HLISS) Funds. Given the sound position of the HLISS Fund and the low payouts for mortgage interest subsidies, HA could reduce the contributions to HLISS and redeploy investment income amounting to about $500 million for meeting the HA's operating expenses in 2006/07 without adversely affecting the employees' entitlement to HLISS benefits."
Looking ahead, HA is liaising with the Government to review the subvention basis to the Authority to ensure the long-term sustainability of the public health care system.
Ends/Thursday, March 30, 2006
Issued at HKT 19:57
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