The Hospital Authority expects a balanced budget for the 2006-07 year, with expenditure of $29.4 billion, and will not appeal against the High Court judgment on doctors' overtime and holiday claims.

Hospital Authority Board Chairman Anthony Wu said today the board endorsed the authority's 2006-07 budget. With estimated revenues totalling $2 billion, together with the Government's allocation of about $27 billion, a balanced budget can be achieved.

Mr Wu said raising natal charges for Mainland women and other fees will be considered, but he emphasised that the primary reason for raising charges is to avoid abuse.

The board also endorsed the plan to rebuild Prince of Wales Hospital, which has insufficient bed space and obsolete facilities. Works will be conducted in phases over 15 years so services are not affected. The first phase, costing $1.75 billion, will be completed by 2010.

Mr Wu said the authority is also considering energy saving as a means to cut expenditure, and there will not be any plan to increase manpower. He said there is little room to cut expenses further.

Doctors' overtime

On the court judgment on doctors' overtime and holiday claims, Mr Wu said the board will not lodge an appeal to avoid a lose-lose situation. He said compensation for doctors under the litigation will be provided in the 2005-06 accounts, which already have an operating deficit of $670 million. However, he added that the authority will discuss with doctors the amount of compensation and way of payment first, before getting the necessary funding.

He said the authority is aware of frontline doctors' concerns about working conditions, adding it will work towards having most doctors working no more than 65 hours a week within three years.

Court of First Instance Judge William Stone handed down on March 1 the judgment on 165 public hospital doctors' claims on overtime, rest days and holidays. He ruled the claims for lost rest days as well as statutory and public holidays have succeeded for the full six-year period, while the claim for overtime, in whatever form, stands dismissed.