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Health sector gets $540M
Concerns raised about $10 million per month spent on Ba and Lautoka hosital services

Health sector gets $540M

Concerns raised about $10 million per month spent on Ba and Lautoka hosital services

By Mikaele Liga , Vijay Narayan
28/06/2024

A total of $540 million has been allocated to the Health sector in the 2024/2025 National Budget of which $450 million will go to the Ministry of Health and $90 million for the operations and running of the Ba and Lautoka hospitals under the Public Private Partnership.

This is an increase of over $100 million from the previous Health Budget.

Deputy Prime Minister and Minister for Finance, Professor Biman Prasad says in a bid to improve service delivery, the Coalition Government in collaboration with the Australian Government have embarked on major technical work to put together a master plan for the redevelopment or relocation of CWM Hospital.

$15 million has been provided by the Australian Government towards this initiative and government is in discussion with multilateral partners like the Asian Development Bank and the World Bank for future funding options.

The Indian Government has also given a grant towards the construction and running of a 100 bed super specialty hospital in Nasinu.

Preparation and construction has started behind the FNU Nasinu Campus.

Professor Prasad also highlights that FNPF had not bid to be part of the Aspen project for Ba and Lautoka hospiatls, as the Fund was effectively ordered by the previous government to take an 80 percent stake in a new company called Health Care Fiji Pte Limited, or HCF.

He says FNPF took 80 percent of its shares with 20 percent for Aspen.

He adds FNPF was given no option, and it was given no chance to evaluate this investment for itself or to work out its economic return.

However Health Care Fiji has said to the government that it will work with them to reach a service agreement.

Professor Prasad says unfortunately, the services in the Ba and Lautoka Hospitals are costing about $10 million per month or about $120 million per year.

He says these two hospitals, alone, are consuming more than one-fifth of the entire national health budget.

Professor Prasad says it is important to remember that the Ministry of Health budget is not just about hospitals - it also has to cover administration, preventive health services, disease control and disaster preparation, health screening and many other things.

$4 million has been allocated to Sri Sathya Sai Sanjeevani Children's Hospital.

Professor Prasad further says that those under the social welfare schemes, free medicine scheme and receiving kidney dialysis subsidy get an automatic access without any further assessment or income verification.

He says they need to present their welfare or free medicine card at the participating general practitioners services.

Professor Prasad says they have paid $19 million to extend these services and in the budget and they are estimating an additional cost of $5 million to assist those on kidney dialysis, they have allocated $3 million for the continuation of the $180 per session subsidy for dialysis patients, which was increased from $150 to $180 int the last budget.

He says for the procurement of drugs and medical equipment, around $96 million is provided in the 2024-2025 Budget.

He says for procurement of bio-medical equipment, $15 million is provided and for capital construction and maintenance works, they are providing $12 million for the interior works at the Labasa Hospital, refurbishment and upgrade of our urban and sub-divisional hospitals, health centres and nursing stations, refurbishment of Savusavu health facility and the construction of a new rehabilitation centre in Tamavua.

2024-2025 Budget Address 2024-2025 Budget Supplement 2024-2025 Budget Estimates

Click here for more Budget 2024-2025 stories

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