A review on public medical fees is underway, targeting Government subsidies to patients and services most in need, Secretary for Health, Welfare & Food Dr York Chow says.

Dr Chow told lawmakers today the Government is also redressing the imbalance between public and private services.

He said while the review may involve an increase in medical fees, no decision has been made on the allocation of the additional income that may be generated.

Regarding accident and emergency service charges introduced in November 2002 and for drugs at specialist outpatient clinics in May 2003, and the fees revision in April 2003, Dr Chow said the following will not be subvention-deductible:

* 50% of the income from the new charges on a permanent basis; and,

* 100% of the income from increases in existing fees for two years (i.e. 2003-04 and 2004-05).

He said accordingly, the dollar amounts of net additional income available to the authority are about $25.6 million for 2002-03, $271.7 million for 2003-04 and $387.4 million for 2004-05.