has fallen through.

The Bermuda Hospitals Board said yesterday the US consortium involved in the scheme had failed to come up with its share of the cash for the project.

Hospitals Board chairman Robert Tucker said: "The BHB now finds it necessary to terminate arrangements with Bermuda Ocean Surgical Society (BOSS).

"Unfortunately, BOSS's funding programme is not sufficiently far advanced to permit them to provide the financial guarantee of their commitments by the deadline which the board felt obliged to establish.'' Hotelier Reggie Cooper, formerly the proprietor of the now closed Glencoe Harbour Club, is the Bermuda representative for BOSS.

He was unable to shed any further light on the situation last night as he had just heard the news and had "not heard from the other side yet''.

But Mr. Cooper did say it was a "great pity'' as "it was a wonderful idea'' but he was "sure the board had their reasons''.

BOSS principals had approached the board in 1993 through the late Dr. John Stubbs with the idea of establishing the outpatient reconstructive surgery clinic.

In May of that year the board had initiated its master plan to outline and prioritise the hospital's structural and space needs over a five to ten year period.

Mr. Tucker said: "The board was not receptive to this proposal initially, however it had opportunity to evaluate its merits in terms of possible monetary benefits to the hospitals as well as Bermuda as a whole.

"Further review indicated that this project could be the source of a significant revenue stream for the hospital as well as a boost for the tourism industry.'' The surgical clinic was intended to provide cosmetic surgery for visitors looking for anonymity, privacy and a luxurious recuperative environment.

More than 3,000 patients were expected to visit the Island during the first year of its operation in 1997.

Twenty five plastic surgeons were recruited for the scheme and they would have brought their patients to the Island for treatment on a rota basis.

Most surgery would have been on an outpatient basis and patients and their families would have stayed in guest houses and hotels.

Jobs would have also been created for local nurses who would have visited the patients in their accommodations during their recovery period.

Plastic surgery wing dropped A design option for the new $17 million wing was developed and BOSS agreed to pay $2.5 million for their share of the construction costs and for the equipment and furnishings for the clinic.

Mr. Tucker added: "The board now regrets that this unique venture was not successfully concluded. However it believes that the decision was made in the best interest of the public of Bermuda.'' And he ruled out the possibility of the board resuming negotiations with BOSS if the organisation was able to find the necessary funds as it was "too late''.

Mr. Tucker said the board had decided to implement the original plans for the space and would pick up the cost of construction BOSS was originally supposed to pay for.

He said two options under consideration for the space were a new clinical laboratory and pharmacy as both needed major upgrading and renovation and were part of the master plan.

Meanwhile construction of the surgical suite, diagnostic imaging clinic and diabetes education centre continued as planned, he said.

And the space which was previously designated for lease to BOSS as their reception and office area will now be available for lease to retail businesses which will complement the health care services.

GOING UP -- Work continues on the new wing at the King Edward VII Memorial Hospital despite the end of the agreement between the Bermuda Hospitals Board and the Bermuda Ocean Surgical Society.