CO129-557-5 Estimates 1937 19-8-1936 - 7-8-1937 — Page 54

HONG KONG WAR MEMORIAL NURSING HOME HONG KONG

Dear Sirs,

54

November, 1936.

The Home has now been in active service for a full four years and during that time it has become increasingly apparent that, financially, it cannot continue to exist at the present rate of charges to patients, while giving the excellent service and skilled nursing which it has done in the past.

Until the end of 1935 owing to wide fluctuations in exchange it has been difficult to gauge expenditure, though income, which is dependent on sickness, has been fairly constant.

But now that the exchange value of the Hongkong dollar has been practically fixed, the six months' working of the Home from 1st January to 30th June, 1936 may be taken as a very close indication of what receipts and expenditure may be expected to be.

During the six months patients discharged were:-

1st class 2nd

Maternity Outpatients

133

99

19

23

This gives an average number of patients of 17.33 per day.

During the six months total fees earned amounted to $27,557.23 while expenditure came to $52,732.42, resulting in a deficit for the period of $25,175, which does not include any allowance for depreciation of various installations, furniture and equipment, and instruments.

We are advised by our Accountants that a provision of $25,000 in a full year should be made for this purpose, which would mean a working loss per annum of $75,000 (which for safety the Committee of Management think should be estimated at $80,000 per annum).

Against this deficit the Home receives half of the surplus income of the Sharp Estate, which means a payment to the Home of about $25,000 per annum, and the Trustees of the Sharp Estate feel confident this sum can be continued.