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Can Island afford hospital project?

Bermudians need to be assured proposed redevelopments of the King Edward VII Memorial Hospital "is not just something we need or want, but something Bermuda can afford".

So said Opposition Whip John Barritt yesterday, as he spoke out about the plans released on Friday for the new hospital.

Contracts for the redevelopment of the new hospital will be signed next month and construction is expected to begin as early as December.

The building has a projected cost of $315 million and will be fitted with an atrium and offer oncology, dialysis and diabetes services and have 90 single patient rooms.

The facility will be designed, built, financed and maintained for the next 30 years by Paget Health Services.

Mr. Barritt praised the Bermuda Hospitals Board (BHB) and Paget Health Services for their hard work, but said he would keep a "watchful and helpful eye" on the project.

"I am aware that, aside from interest and concerns people might have about the construction, there is a residual concern about the cost, specifically whether Bermuda can afford this," he said.

"A public-private partnership of this magnitude may be new to Bermuda but it has been employed elsewhere, say the UK for example, and the experiences have not all been good ones.

"I am aware that the BHB did a thorough job in the tender process, particularly in the review of the final three bids and selection of the eventual winner."

He continued: "They employed a template that commends itself to other publicly-funded projects. I understand that the three final bids were reviewed and evaluated in such a way that the various persons did not know which bidder they were recommending until after the final decision was made by the board.

"Still, there is a lot of money at stake here — $315 million for the entire KEMH redevelopment. All of us will be interested to know the terms of repayment.

"There will also be questions and concerns over whether Bermudian sub-contractors will get to work the site, and what work and on what terms. They will quite rightly want to be empowered."

Mr. Barritt said the project warrants "continued close examination and evaluation every step of the way".

He also gave three reasons as to why the question needs to be asked whether or not Bermuda can afford the new project.

"People need to be assured that this is not just something we need or want, but something Bermuda can afford and the question is a fair one, bearing in mind that the Government has already incurred a billion-dollar debt in our names, which will need to be paid down pretty smartly (along with plans to trim Government costs going forward, about which we have heard nothing or seen any evidence of); we have a struggling economy which could get worse before it gets better; and ever-increasing health care costs, quite apart from the cost of a new hospital."

The veteran MP also expressed his concerns that the new hospital plan does not include a continuing care unit for seniors.

"As most people know, seniors are the fastest growing demographic group and the infrastructure in place (or not) to care for them is in serious need of an overhaul. This represents an equally serious cost challenge."

And unless Bermuda addresses the increasing costs of affordable health care it will become beyond the reach of more and more people, he added.

"What impressed me each time was the enormity of the undertaking and the importance of getting it right, not just in terms of the physical plant and environmental impact but in terms of the overall cost particularly," he said of the BHB's efforts to date.

"I am pleased the BHB continues to take the proposal and plans to the people of Bermuda. I am also aware, as one of the MPs for residents of the area, that there have been a series of prior meetings with neighbours to keep them informed.

"I think the people of Bermuda need to be engaged, ought to be engaged in what's proposed, given the scope of the project and the impact it will have on health care costs and, by extension, the cost of living generally in Bermuda."