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~ Low tariffs, unpaid bills smothering hospital ~
CAY HILL--St. Maarten Medical Center (SMMC) is experiencing dire financial straits, which potentially threatens the future health of the institution if not remedied soon.
SMMC General Director Kees Klarenbeek told The Daily Herald in an exclusive interview on Thursday that the institution is currently operating in the red, with its accounts some NAf. 5 million in deficit although a number of cost-cutting measures have been employed over the past year.
SMMC's 2012 financial report, completed about two weeks ago, shows a deficit of NAf. 2.7 million. This was attributed partly to a huge investment SMMC had made some years ago in a new information communications technology (ICT) system that developed issues and had to be discontinued.
Klarenbeek said a deficit also was expected to be recorded in the 2013 and 2014 financial reports, of which the former is currently being finalised and the latter being worked on. He was unable to estimate the amount of the deficit expected without the reports being completed. The 2012 report has been sent to government.
According to Klarenbeek, the two main areas of concern when it comes to SMMC finances are the tariffs, which do not correspond with the actual rising medical cost and the huge unpaid bills from patients who use the hospital services.
The current tariffs are some 25 per cent below actual cost. According to Klarenbeek, SMMC already was operating at a disadvantage prior to the dismantling of the Netherlands Antilles in October 2010, when it had been receiving 70 per cent of the tariffs compared to St. Elisabeth Hospital in Curaçao.
St. Elisabeth, he added, was considered the main hospital at the time and SMMC was just considered a supporting hospital. The last time the tariffs had been adjusted was 24 years ago in 1991, he said. The tariffs are low across the board.
As it relates to unpaid bills, Klarenbeek said patients leave about NAf. 2.5 million in unpaid bills at SMMC annually. An estimated 60 per cent of this is from uninsured/unregistered patients.
SMMC has raised its concerns with government and requesting assistance to help solve this challenge.
A total of 13 letters on the matter had been sent to various ministers, including former Health Minister Cornelius de Weever, former Prime Minister Sarah Wescot-Williams and incumbent Justice Minister Dennis Richardson and Finance Minister Martin Hassink. Only one written response had been received from Hassink indicating that the matter would be tabled in a Council of Ministers meeting.
Members of Parliament (MPs) are also aware of the issues affecting the institution and promised to "bring it forward," Hassink said.
Klarenbeek said that while the unpaid bills continued to be a major concern, as a responsible hospital SMMC would not turn away patients in need of medical care. "SMMC is and will continue to deliver care to the people if they need it," he stressed.
Despite the bleak financial situation, SMMC is very optimistic.
In an effort to survive, the hospital has accrued a huge backlog in its taxes to government. "We had to do this to let the hospital survive. Society needs health care and we have to continue offering it," Klarenbeek said.
He said SMMC was there to serve the people of St. Maarten and he was willing to work with anyone to see to it that SMMC survived and would be in a good position to take care of the health of the resident and visiting population. He said he knew the situation at the medical institution was a challenging one, but he was confident that together with all hands on deck the issues could be resolved.
"I know it's hard, but it's a challenge for everyone," he said.
