Nepal

BP Koirala Cancer Hospital Faces Severe Financial Crisis

By Rastriya Samchar Samiti

This photo shows the BP Koirala Memorial Cancer Hospital in Bharatpur, Chitwan, on Wednesday, April 20, 2016. Photo: Tilak Rimal/ THT

KATHMANDU, APRIL 13 The BP Koirala Memorial Cancer Hospital is facing a severe financial crisis, raising concerns over its ability to sustain regular operations. The government-run hospital, which has significantly expanded its services largely free of cost, is now under mounting financial pressure. Due to the ongoing fiscal constraints, retired employees have reportedly been unable to receive their benefits. The hospital has been providing free beds and meals to patients and has expanded its capacity to meet rising demand. However, despite being the country's leading cancer treatment centre, it is struggling financially, partly due to unpaid dues from various government entities. Executive Director Dr Shivaji Paudel said that a total of Rs 416.75 million remains outstanding from multiple government agencies. Of the total amount, Rs 258.8 million is yet to be received from the Health Insurance Board Nepal. Similarly, Rs 126.7 million is pending from the federal government for treatment provided to underprivileged patients. Other dues include Rs 6.225 million from Bagmati Province, Rs 9.918 million from Lumbini Province, and Rs 1.059 million from Gandaki Province under the same category. Due to delayed payments, the hospital's liabilities have also accumulated. According to Dr Paudel, the institution still owes Rs 191.715 million towards salaries, employee provident fund contributions, deposits to the Citizen Investment Trust, routine maintenance, and payments to various agencies. In addition, Rs 97.7 million remains unpaid for medicines procured through the hospital pharmacy. The hospital has also been unable to disburse Rs 45.7 million in retirement benefits to 18 employees who retired in the current fiscal year. Currently, the hospital has Rs 82.8 million in its account, an amount sufficient only to cover staff salaries, around three months of employee-related liabilities, and mandatory deposits in the Citizen Investment Trust and the Employees Provident Fund Nepal. Dr Paudel said that regular hospital operations have been adversely affected due to the inability to clear outstanding payments. He added that maintaining routine functions such as equipment maintenance, emergency procurement, and medicine supply has become increasingly difficult. The hospital's monthly expenditure on salaries and allowances stands at approximately Rs 50 million. It employs a total of 713 staff members, including 95 doctors. In the current fiscal year, the government has allocated Rs 241.78 million from tax revenues for the hospital's operation. However, the annual expenditure on salaries and allowances alone exceeds Rs 600 million. The hospital has been managing the remaining expenses through its internal income.