ensure it is charging insurers realistic prices for services -- and getting value for money.

Chairwoman of the Bermuda Hospital's Board Ianthia Simmons-Wade said it was the first major monetary investigation to be carried out for some years, but said she hoped it would leave the Island's two hospitals on a better financial footing.

She revealed the details of the review after Shadow Health Minister Kim Young said Government should investigate why the board could not operate within its budget.

At the House of Assembly on Wednesday night, Mrs. Young said she had been led to believe the finances were in a "mess'' and that she had also heard whispers that the board was unable to pay bills on time.

Yesterday Mrs. Simmons-Wade admitted that the board always faced cash challenges, but said they were being overcome and all bills were paid.

She said this year, the board was particularly pleased with the way it had managed its finances.

However, she said a review had been launched to ensure the hospitals were not only getting paid the current rate for services, but also that it was getting value for money all round.

She said at present insurers were paying the same rate for somebody staying on a general ward as somebody staying in intensive care.

That, she said, was not realist charging, and there were many similar instances.

"Right now we are reviewing the actual charges that we ask of insurers to ensure we are charging appropriately for what we are providing,'' she said.

"We have many more advancements and better technology now, and there are also many more tests that we do, but we are charging the same as in the past.

BHB to carry out financial review She said if charges for services do increase, it will have a minimal impact on the public.

They may find their insurance premiums increasing by just a dollar or two a week, however, she said the board would notice a much more significant increase in the revenue it received.

Also under review are contracts and the purchase of material items.

She added: "We want to make sure that we get the best contract for the best price. We are looking at every single thing to make sure we are getting the best quality, the best service, and to make sure it is being charged for.

"We are very aggressively looking at all of these issues. We are doing the best we can to make sure we are able to provide the best services, have good physical plants, and have staff that feel compensated for their hard work and dedication.'' However, she said the board would also be going out into the community to look for funding because it was unrealistic to expect Government pay out.

She said the financial review should be complete by the end of the year.

Mrs. Young last night welcomed the investigation and said this was exactly the way the board should be going. She said the hospitals should be run as businesses.