Hospital subsidies rose by 13 percent more than $15 million last year due to a rise in long-term patients and an increased utilisation of health services.

In 2009 the Bermuda Hospitals Board (BHB) estimated that subsidies for King Edward VII Memorial Hospital (KEMH) would be $85,620,150, but in Friday's Budget it was revealed that these costs rose to $100,620,429 — $15,000,279 more than the original estimate and the largest increase in hospital subsidies for four years.

A BHB spokesperson said the increase was directly related to utilisation, long-term patients who no longer need acute care but have nowhere to go, and services.

She said: "During this fiscal year one of the drivers of the subsidy total has been an increase in long stay patients.

"These are people who are unable to leave hospital as they do not have a safe environment in which to be released, even though they no longer need acute hospital care.

"These are quite often seniors, but can also be younger people who require special care. As these patients pay a per diem rate this has a cumulative pressure on subsidies.

"The hospital is looking to increase the number of services it provides on the Island. This helps reduce overall health care costs as there is less need for travel, which is expensive, but it will increase subsidies to the hospital over time as a new service in Bermuda."

The new services include vascular surgery, access to a new BHB robot, pre and post-treatment radiology consultations and a new prostate cancer clinic.

According to the budget, $8,044,080 more was spent on aged subsidies, $2,793,739 on youth subsidies and $479,450 on indigent subsidies.

More than $2 million was spent on outpatients and $374,060 more on Haemodialysis.

However, unlike in previous budgets where an overrun in subsidies has occurred and therefore a request for further funding the following year there was no increase requested.

The budget for hospital subsidies next year remains the same as 2009.

A BHB spokesperson said they hoped to tackle the subsidy by solutions for the long-term patients which would be developed in the coming year.

She said: "There are many variables when setting the estimate each year. You had asked specifically about our increase this fiscal year and we have stated that it is essentially down to increased utilisation, along with an increase in length of stay.

"We mentioned new on-Island services as this is one of the variables that essentially save health care dollars overall, but could have impacted an increase to the subsidy.

"The subsidy for next year will hopefully be controlled by reducing length of stay and lower utilisation (which is a variable).

"However, utilisation will drive the final figure — and this depends on the health of Bermuda. The estimate is not a set budget, but an estimate of possible costs.

"As we are bound by legislation to care for everyone who attends the hospital and cannot control if there is a spike in demand, we communicate to Government throughout the year on utilisation.

"This is why the estimate and actual subsidy varies each year. Last year was a larger than normal variance for the reasons outlined."