XN000022-1982-07-08 — Page 12

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SUBVENTED HOSPITALS

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THE ACTING DIRECTOR OF MEDICAL AND HEALTH SERVICES,

I S.F.

HAS GIVEN A CATEGORICAL ASSURANCE THAT THE SYSTEM OF MEDICAL SUBVENTION IS NOT INTENDED TO CREATE TWO STANDARDS OF HOSPITAL SERVICES.

COMMENTING ON RECENT CRITICISM AGAINST THE SUBVENTION SYSTEM, HE SAID, LET ME SAY PUBLICLY HERE ONCE AND FOR ALL THAT IT HAS NEVER BEEN AND WILL NOT BE OUR INTENTION TO HAVE TWO STANDARDS OF HOSPITALS.+

+ IF SOME OF THE INSTITUTIONS LABOUR UNDER SUCH FALSE MISAPPREHENSION, THEY ARE MISUNDERSTANDING THE SITUATION, +

DR LAM SAID, ADDRESSING THE LIONS CLUB OF HONG KONG HARBOUR THIS (THURSDAY) AFTERNOON.

HE WENT ON TO EXPLAIN THAT THERE ARE THREE TYPES OF HOSPITALS OPERATING IN HONG KONG - PRIVATE HOSPITALS, GOVERNMENT HOSPITALS AND SUBVENTED HOSPITALS.

HE SAID THERE WERE TWO METHODS OF SUBVENTION - DISCRETIONARY GRANT AND DEFICIENCY GRANT.

MOST HOSPITALS ARE SUBVENTED ON A DEFICIENCY GRANT BASIS. WHICH MEANS THAT THEY ARE GIVEN OVER 90 PER CENT SUBVENTION FOR THEIR RECURRENT EXPENSES WHILE IN THEIR CAPITAL COMMITMENT THE ASSISTANCE FROM THE PUBLIC PURSE DEPENDS ON THE AMOUNT RAISED BY THE ORGANISATION.

IT IS BECAUSE OF THIS ARRANGEMENT THAT HAS GIVEN RISE TO THE MISCONCEPTION REFERRED TO AS THE +SEE-SAW PHENOMENON+, DR LAM

SAID.

THE RATIO OF CONTRIBUTION FROM THE PUBLIC PURSE WOULD DEPEND ON HOW MUCH OR HOW WELL THAT PROJECT FITS INTO THE OVERALL GOVERNMENT MEDICAL PROGRAMME, HE ADDED.

DR LAM SAID GOVERNMENT'S POLICY IS TO ENCOURAGE PARTICIPATION IN THE OVERALL MASTER PLAN AND NOT TO SUPPORT THE PROLIFERATION OF ISOLATED SCHEMES WHICH AT BEST ARE TRANSIENT PROJECTS AND AT WORSE CONTRIVED PLOTS HATCHED BY INDIVIDUALS.

+THESE REGULATIONS ARE BUILT INTO THE SYSTEM TO SAFEGUARD AND PREVENT WASTE AND UNNECESSARY SPENDING OF PUBLIC FUNDS, HE ADDED.

HE SAID THAT THE SYSTEM STIPULATES THAT IF A SUBVENTED ORGANISATION PLANNED TO PROVIDE A SERVICE. IT SHOULD NOT COST MORE THAN WHAT THE GOVERNMENT COULD PROVIDE.

UNFORTUNATELY, SAID DR LAM, THIS POLICY HAS BEEN MISCONSTRUED AND MISINTERPRETED TO MEAN THAT CONDITIONS OF SERVICE OFFERED TO THE SUBVENTED HOSPITALS CANNOT BE BETTER THAN THE GOVERNMENT'S.

+SHAT FE