Anaesthetists were perceived to have held King Edward VII Memorial Hospital hostage in a row over contracts, Ombudsman Arlene Brock revealed.

"In 2001, the BHB considered hiring its own anaesthetists rather than continuing with the existing contracts for individual and group anaesthetists," she wrote.

"The anaesthetists wrote a strong letter of protest and were supported by a group of surgeons who presented their opposition to the board.

"Given the fact that the private arrangement had worked very well for many years, the surgeons were concerned about a slippery slope should the hospital get the notion of putting surgeons on salary as well (and charging them for the cost of supplies)."

According to the 2002 Review Committee, said Ms Brock, the pro reasons for hiring anaesthetists far outweighed the cons. However, she said, the 2002 review recommended the hospital not hire its own anaesthetists.

Ms Brock explained: "There were fears about the calibre, recruitment challenges and availability of anaesthetists if the positions became salaried. There were suggestions that the BHB would incur far more costs as salaried anaesthetists are unlikely to agree to work the number of hours that the private anaesthetists do.

"The comment about availability caused concern. In the mind of some of the review committee, this was a thinly-veiled threat that the current anaesthetists would leave if the hospital decided to hire its own. This thinly-veiled threat seems to have been extremely effective.

"It is a sad commentary on the level of commitment to Bermuda that any threat at all could have been made (denied by anaesthetists) or even perceived to have been made by a group of practitioners who have earned a decent living from their service to Bermuda for many years.

"It is an even sadder indictment against the quality of its strategic vision and pragmatic capacity that the BHB did not respond immediately and firmly. Bermuda's single medical facility should not be held hostage to the possibility of such a threat being exercised."