Deficit down: The Hospital Authority recorded a deficit of $338 million for 2004-05, down 9.6% over 2003-04.

The Hospital Authority recorded a deficit of $338 million for 2004-05, down 9.6% on 2003-04, with spending at $30.6 billion and income of $30.3 billion. The amount of revenue reserve stood at $679 million.

Releasing its annual report today, the authority said about 94% of its income came from Government subvention, followed by medical fee income accounting for about 4.6%. For expenditure, staff costs accounted for 76.5% and medical supplies equipment 9.6%.

The authority's net assets amounted to $7.9 billion while drug inventories were $416 million. The average stock holding period for drugs was about 11 weeks.

In terms of hospital and clinic fees and charges, the amount of provision for doubtful debts in 2004-05 was about $47.8 million, $4.5 million less than 2003-04. The provision was assessed based on aging and the recoverability rate of outstanding hospital fees and charges as at the financial year-end.

The total hospital and clinic fees and charges levied for the year was $1.96 billion. Excluding fees written-off, changes in the provision for doubtful debts and fees waived, the net fees and charges was $1.34 billion.

The authority said a new infectious disease centre is being built at the Princess Margaret Hospital for completion in June 2007, with an estimated cost of $538.3 million. The cost for developing Chinese medicine clinics at hospitals will be about $71.5 million.