TNAG-1545-FCO40-2109-Hong-Kong-legislation-for-public-health-and-urban-services-1986 — Page 8

and 13

1985/86

subvention proposed in paragraphs 12 above would take effect from the start of the financial year, and by 1987/88 the level of subvention would assume fee income at the full government rate then prevailing.

Financial and staffing implications

19

On the basis of the existing

existing rates in government institutions, the proposal to

to introduce maintenance charges for third-class beds and outpatient services will enable TWGH to achieve an estimated annual saving of $5 million in 1985/86, rising to $15.7 million in 1987/88, i.e.

i.e. the end of the three-year period. An increase in charges for first-and second-class beds would achieve additional savings.

20

The introduction of maintenance charges for third-class beds and outpatient services will create the need for additional medical social workers and clerical staff. However, it is not possible at present to give any detailed estimate of the numbers or costs involved. As a rough estimate the, staff costs are likely to be between $2 million and $3 million per annum.

Public reaction

21

The Tung Wah Board of Directors and the Advisory Board are likely to resist strongly, as they have done in the past, any attempt to make them change their tradition of providing free medical services.

22

It is expected that the stance of TWGH on this matter will not win

win widespread support from the public at large, except those who have benefited from the free medical services of TWGH. A majority of the better informed members of the public could be

be expected to realize that providing free medical services to those who can afford to pay is not an effective and equitable way of spending public funds and would therefore favour the move proposed by the Government.

Publicity

23

It is considered that no publicity should be given to this issue until after the discussions with the new Board referred to in paragraph 17 have taken place. Thereafter, the Government should emphasize the need for bringing TWGH medical and clinic charges into line with those at government and other subvented hospitals and ralating this proposal to the comments made by the Director of Audit and the views of the Public Accounts Committee. It should also be stressed that those who cannot afford to pay will, by way of remission, continue to receive free medical services at TWGH as at any other government or subvented hospital.

CONFIDENTIAL

機會