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Group of hospitals runs up deficit of HK$60m

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Public hospitals in New Territories West overspent by HK$60 million in the past financial year, drawing criticism of poor budget control by management and a lack of transparency on how the Hospital Authority spends taxpayers' money.

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The deficit - 1.5 per cent of the HK$4 billion annual budget of the Hospital Authority for the New Territories West group of hospitals - is one of the biggest run up by a hospital group. Deficits racked up by other groups in the past have been HK$20 million to HK$30 million.

The authority said the New Territories West deficit was 'within an acceptable range' and the amount was covered by the head office. 'We allow clusters to have a minor variation in their budget spending,' the authority spokesman said.

The chief executive of the New Territories West group of hospitals, Dr Albert Lo Chi-yuen, admitted the deficit was 'the largest' since he took up the job in 2005. 'If anyone needs to be responsible for the over-budget, it would be me,' Lo said.

The financial head of the group - which comprises Tuen Mun, Castle Peak, Pok O and Siu Lam hospitals - left his post last month after the deficit was spotted, but Lo said his departure was normal because his contract had ended.

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He said the group had spent about HK$50 million stocking up on drugs for the growing number of patients, and another HK$10 million on maintenance of medical equipment.

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