plastic surgery clinic in Bermuda.

And the location is expected to be a guest property or hotel within 15 minutes of King Edward VII Memorial Hospital.

The decision by the Bermuda Ocean Surgical Society to move its operation off site from the hospital was a mutual decision between it and the Bermuda Hospitals Board, BOSS spokeswoman Joanne MacPhee said yesterday.

"BOSS's plans to build a pioneering offshore plastic surgery unit in Bermuda have not been dropped, but rather enhanced, by the mutually agreed decision to move their operation off-site from KEMH,'' she said.

Ms MacPhee said negotiations had been ongoing between the two groups.

She added: "As recently as October 9, the board, in a letter to BOSS, acknowledged that should `BOSS decide to move the BOSS operation off the hospital site, BHB will not oppose it'.'' BOSS chief executive officer Richard Rymland said: "BOSS will be functioning in Bermuda in another venue with expanded facilities for the patients as requested by our many member physicians.'' BHB spokeswoman Kendaree Burgess-Fairn said the board had "no idea they (BOSS) were forced to consider other strategies''.

"Time and time again, BOSS stressed their commitment to us and the facility,'' she added.

BHB chairman Robert Tucker said: "BOSS has indicated the expectation at some undefined future date of creating a free-standing surgical clinic in Bermuda.

"The BHB regards this expectation as highly speculative. However, in the event BOSS is able to present a detailed, specific, financially sound scheme -- the BHB would consider providing services if practicable on a basis to be negotiated.'' A number of alternate sites are being studied and a final decision is expected shortly, said Mr. Rymland.

He would not disclose which properties were being looked at but said the new location would provide operating suites and offices along with staff accommodation.

And he said: "The move to a larger site will actually enhance our product.

"In addition to affording us the opportunity to expand our surgical suites, we will be able to include a health spa and other sought after and related hospitality services.'' Mr. Rymland revealed that the site chosen would be no more than 15 minutes away from the hospital in the case of a medical emergency.

Most surgeons across the US operated in suites connected to their own offices -- not in a hospital environment, he said.

New plastic surgery clinic plan revealed But there was a statistical need with one-third of one percent of patients requiring intense hospitalisation so the facility had to be close to the hospital.

BOSS originally planned to have contracts in place with the BHB at least a year before groundbreaking to allow them time to enlist board certified physicians.

"When the BHB did not sign their agreements until August 31 -- over seven weeks after the groundbreaking -- BOSS were forced to consider other strategies,'' said Mr. Rymland.

He said BOSS wished to have the contracts in place so it could market the idea to surgeons across the US and get them to sign on.

They would not have signed without the contracts being in place.

When the BHB needed BOSS' share of the cash to meet its obligation, BOSS was left with two choices, he said.

The investors could pump more of their own money into the project or secure a loan which would "`corrode their bottom line'' over the first five years of operation.

Or they could hold off and speak to the doctors in more detail and reevaluate the situation which was what they chose to do, said Mr. Rymland.

"The BHB examined BOSS' financial statements more than a year ago and were well aware of our capabilities, otherwise they would not have proceeded past that point,'' he continued.

"The decision not to post the board's request for $2.5 million at this time was based on appropriate corporate planning which we believe will lead to enhanced potential for the company.'' Ms MacPhee said: "Response to the initial marketing strategies has been outstanding and BOSS remains committed to creating a world class medical facility in Bermuda, which they are confident will greatly enhance Bermuda's tourism industry and overall economy.'' `BOSS will be functioning in Bermuda in another venue with expanded facilities for the patients as requested by our many member physicians.' -- BOSS chief executive Richard Rymland