More funding for health authorities planned
Updated at 6.45pm: The government would allocate more funds to health authorities over the next few years to improve medical services, Financial Secretary Henry Tang Ying-yen said on Wednesday in his budget speech.
Mr Tang said a $650 million one-off grant the government offered to the Hospital Authority last year would be converted to recurrent funding.
The government would also provide additional recurrent funds, rising by some $300 million per annum, over the next three years.
Mr Tang said the increased funds were aimed at improving the authority's financial position and medical services.
The financial secretary also said the government was studying new financial arrangements for healthcare services as it was now heavily subsidised and placed a great burden on government finances.
'The Health, Welfare and Food Bureau will conduct a public consultation later in the year. In finalising an overall package, we will consider whether to provide a tax deduction for contributions to private medical insurance schemes,' he said.
After the announcement of the increased funding, Hospital Authority chairman Anthony Wu Ting-yuk said he welcomed the decision.
'We are encouraged by the government's allocation for the coming fiscal year. The increase in funding not only reflects the continuous support and confidence from the government, but also indicates that there will not be any further reduction in future allocation,' Mr Wu said.
