12

accuracy of this assessment, although over-assessment is possible

because of the crude method employed.

33.

As regards paragraph 54, the consulting engineers have arranged

to keep more easily auditable records.

Faragraph 57: Head 83 - Subventions: Medical

34.

Subhead 109 Hong Kong Buddhist Hospital

The 350 bed Hong Kong Buddhist Hospital was built by the Hong

Kong Buddhist Association entirely with its own funds to provide hospital

care at a reasonable cost to the middle income groups who find it difficult

to meet the fees of private hospitals. It receives a discretionary

subvention on a cost-per-bed basis. The normal rules for discretionary

grants to medical organisations apply. The hospital is in an area of

Kowloon where hospital facilities are needed but where the population is

mainly in the lower income bracket. It is partly for this reason that

the hospital's bed occupancy rate has been low since its opening. It is

not the practice for the Government to exercise close supervision and

financial control over hospitals receiving discretionary subventions,

and a detailed investigation as suggested by the Director of Audit has

therefore not been conducted.

35.

Nevertheless, the problems have been recognised and measures have

been taken to improve the situation. As pointed out by the Director of

Audit the bed occupancy has improved, by the practice adopted in 1974 of

transferring convalescent patients from Queen Elizabeth Hospital to the

Buddhist Hospital. These patients are accommodated in non-acute beds in

the Buddhist Hospital, for which the subvention is considerably lower

than the cost of the acute beds released, which can then be more appropriately

used for acute cases.

36.

It is expected that the problem will be resolved when the regionali-

salion of hospital services comes into effect as from 1st April 1977. In

this scheme, hospital fees for general wards will be standardized, so the

Buddhist.....

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