Hospital fees have been hiked in an effort to improve the hospitals' financial situation, Health Minister Nelson Bascome told the House of Assembly on Friday.

Shadow Health Minister Michael Dunkley questioned the increase in fees, saying that last year fees were increased by four percent while this year they have been increased by five percent.

Mr. Dunkley said he wanted to know specifically how the fee structure was arrived at and how the move will impact the hospitals' financial position.

Mr. Bascome, who said last year fees were hiked by four percent in some areas and 2.8 percent in others, said that increase still left the hospital in a financial deficit.

Referring to pictures produced by Mr. Dunkley during the Budget debate on areas in the hospital in need of renovation, he said the money would be going towards significant hospital renovations.

The increased fees are also to pay for increased salaries and medical supplies, amongst other things. "We all know the situation needs improvement," he said.