HOSPITAL FINANCE

Nelson Evening Mail, Volume LXI, 29 October 1928, Page 8

HOSPITAL FINANCE

NEW METHODS PROPOSED

(By Telegraph—Special to “The Mail")

WELLINGTON, 27th October

Recognising that the present system of financing hospitals is not ideal, the Hospital Boards of the Dominion will have before them at their next conference proposals that new methods should be adopted to obtain the necessary money. It is possible that more than one course wilt be proposed ,to lighten the burden upon rural communities, but that which will receive most attention is a project for the. cessation of hospital local rates and the introduction of a contributory system. This is the general principle which will he placed before the representatives of the Boards and if it meets with their approval steps will be taken to introduce amendments to the Municipal Corporations Act and the Hospitals A lit. If the change is made the Dominion will be adopting an extension of and improvement upon tlio Australian methods of hospital finance. The proposals are that the contributions should bo universal and collected by employers from their employees by means of wage stamps, or a similar levy. An alternative proposal which is likely to be submitted is that the Government should be asked to make the hospital ta.X a special levy to. be collected with the income tax. T’h6 advantage claimed, for this method is that it is easier and less" expensive to collect, the machinery is less cumbrous and tlie return mqre calculable.

The suggested contributory system, which is in reality a method of universal health insurance, meets with the approval of large employers in Wellington who have been consulted and is also endorsed by. ratepayers’ associations. ' It is a considerably more equitable method of. collection,' said a large manufacturer when discussing the matter today. “And it' seems likely to meet with the support of business men. There niay he some opposition, raised by the proposal that the employers should make the collection, but that should not be serious. The necessity of a satisfactory method of hospital finance is most apparent, and this proposal seems a likely solution.. Certainly it should receive .very earnest- consideration by. all concerned.”