Minister of Health and Wellness Ian Gooding-Edghill has revealed plans to spend more than $160 million to replace equipment at the island’s only public hospital over a five-year period.
He has also recommended the creation of a fund to pay for improvements to the Queen Elizabeth Hospital (QEH) plant in the longer term.
Gooding-Edghill spoke about the planned capital expenditure programme while appearing on Down To Brass Tacks on Starcom Network on Friday, when he said he would be taking a comprehensive proposal to the Ministry of Finance shortly.
“I came up with a five-year capital plan. We have to discuss it with the Ministry of Finance and, subject to their approval, we are going to spread the replacement over five years.
“It’s not a situation where we are going to buy everything in one year. In the first two years we have projected, based on the plan that we have, we will spend in excess of $60 million and then obviously the remainder over the next [three] years that will be well over $100 million,” the Health Minister disclosed.
Gooding-Edghill has also put forward the idea of a capital expenditure retention fund so money for new equipment beyond those five years would be readily available.
He explained that seven to ten per cent of the QEH revenues could be set aside every year “and put in a fund to replace equipment on an annual basis”.
“So, let’s say you do it in this first year, then you can spend that money in equipment replacement in the second year while you also collect,” Gooding-Edghill said, adding that this fund would help to keep the hospital plant in good shape.
He said among other initiatives under consideration is the relocation of the QEH’s non-clinical services to its Enmore compound, opposite the hospital’s main building, where other administrative offices are currently located.
“So, if we can build out that area and take the non-clinical services out of the Queen Elizabeth Hospital, like administration and so on, that will free up the Queen Elizabeth Hospital for more clinical services to be performed,” the Minister told his radio audience.
“The other issue has to be the Lion’s Eye Care Centre, on the third floor especially, where we are going to have to build out… We are looking to see how best the hospital can carry this cost and once we have finalised the scope of work, then we would be in a better position to do what we have to do.”
The Health Minister said that with several capital projects and other plans in the pipeline to improve services at the QEH and related areas, the hospital needs all the funding it can get. emmanueljoseph@barbadostoday.bb
He pointed out that the Health Services Contribution (HSC) Levy which was introduced in October 2018 to help fund QEH operations has been assisting the hospital in its cash management.
“Truth be told, the QEH needs at least $200 million to make sure that we cover all of our costs and do all of our services. But Government has been very good to the QEH and to the Ministry of Health and they continue to provide us with the resources.
“What we have to do now is to perhaps get better and keep [efficient],” Minister Gooding-Edghill said.
He reported a steady decline in revenue from the HSC levy between 2019 and August this year.
In 2021, the Government collected $49.9 million, which was down from the $53.7 million collected in 2020. In 2019, revenue from the levy stood at $59.3 million.
Taxpayers have so far this year paid $46.6 million.
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