increase, Government said yesterday.

The proposal came in a report to Government on the state of Bermuda's health which was debated in the House of Assembly yesterday.

But Health and Social Services Minister Clarence Terceira warned that tough rules governing the running of private sector homes would be put in place to ensure high standards of care.

And he said there would continue to be a role for the King Edward VII Memorial Hospital's Extended Care Unit, even though the annual cost of care there is higher.

He added he saw a role for both rest homes, for residents capable of looking after themselves to a great extent, and nursing homes, which would cater for the more dependent resident.

Private care for elderly to rise And he said that it was hoped to extend insurance cover to pay for day care so the elderly had the option of living at home without a member of the family having to be there all the time.

He added: "That would be a lot cheaper than putting them in a ward at the hospital.'' He said the insurance companies were currently studying the recommendations of the report, but they had yet to get back to Government.

He explained Bermuda's ageing population meant more and more elderly people were having to be put in the mainstream hospital, at a cost of around $200,000 per year per patient.

But he said: "They are really in more of a chronic condition and they don't need all the expertise of the nurses and doctors.

"If we were to take them out of acute wards, the savings would be about $5 million a year, which is a substantial amount of money.'' Dr. Terceira added that the annual cost of care for a patient in one nursing home was around $26,000 a year, compared to $78,000 a year in the Extended Care Unit.

And he said that the sector was already expanding to meet anticipated demand.

But he added: "One of the things which hasn't caught on here to the same extent as elsewhere is nursing home care.'' He said: "I think there is room for this -- but one of the things we have to be sure of is getting regulations for standards.

"In every country, there is always a problem if there is no clear set of standards rigorously applied.'' But he said he saw a private/public system complementing each other rather than competing.

He explained: "I think there would be a mix -- you can't just close down the Extended Care Unit. It works well, especially for respite care allowing people who care for the elderly and get a break.'' And Dr. Terceira added there would continue to be a need for the expertise on tap in the ECU.

He said: "It has a valuable training role where experts can help elderly people to help themselves.'' SENIORS SR