Plans to increase hospital fees to give King Edward VII Memorial Hospital greater financial stability were approved by the Senate yesterday.

Health Minister Philip Perinchief read a brief on the Bermuda Hospitals Board (Hospital Fees) Regulations 2007, in which he stated fees would rise by 7.5 percent.

Sen. Perinchief said the move would enable the hospital to remain competitive by increasing salaries to aid in recruitment of staff. The Bermuda Health Council, he said, had also noted there would likely by an increase in the cost of drugs and medical supplies, while other projects planned by the BHB would also send costs spiralling.

Sen. Perinchief said: “In total, the initiatives proposed by the BHB add approximately $10 million to the cost of operating the hospitals, and this represents an increase of 7.5 percent over last year’s operating budget.”