With less than two weeks to go in the current financial year it looks as though the hospitals will defeat all the odds, closing 2003/2004 with a surplus of $3 million.

The surplus is all the more remarkable because at this time last year the hospitals were facing a $3.5 million loss.

Hospital financial statements show that in 200002 the Bermuda Hospitals Board (BHB), which controls and manages the King Edward VII Memorial Hospital (KEMH) and St. Brendan?s Hospital, lost a total of $180,345. In 2002/2003, with expenses jumping across the board, that loss leapt to $3,509,699.

?The BHB had some costs that did result in a deficit (in 2002/2003),? BHB chairman Jonathan Brewin said yesterday.

?Firstly, it established its Chargemaster payment system with assistance from a specialist consultant at Ernst & Young. Chargemaster will allow us to bill our clients far more fairly for the services they use. We feel this is important as part of our commitment to transparent and fiscally responsible processes.

?Secondly, the BHB made significant provisions for employee health insurance. As an employer, it is our duty to allocate adequate resources to cover our staff, and with health insurance costs rising, this measure was appropriate.

?With the current financial year nearing its close, the BHB has been able, through strong financial management, to achieve a surplus of approximately $3 million.

?This surplus ? along with tight cash flow management ? puts us in a far more favourable position to meet the challenges of healthcare in the coming years.?

Mr. Brewin trusted matters would not change significantly as the financial year came to a close. However, he added, some of the money has already been spent. ?We have already been able to channel some of this year?s surplus into refurbishment of our facilities to provide better services to our patients.

?As a nation with a relatively small population and high demands for healthcare standards of an international level, the cost of providing healthcare in Bermuda gives the BHB ? and the community it serves ? a challenge,? Mr. Brewin continued.

?As with other countries, as the services the community demands become more sophisticated, so there is an impact on healthcare costs. The BHB has increasingly placed a great emphasis on the importance of operating efficiently, using its resources to give the best services available.?