Readers' Forum
“To have and have not”
I refer to the Editorial Viewpoint ("To have and have not,” Parsiana, September 7-20, 2022 in which it is stated that The B. D. Petit Parsee General Hospital (PGH) making a loss.
It would be worthwhile to look at the improved financials of PGH over the last five years (see Tables 1 and 2 below) as well as the improved medical facilities and infrastructure at the Hospital. I have personally always believed that a trust with over a hundred crores in liquid assets and with a few hundred crores in immovable assets would never need a further Rs 160 crores by way of donations to survive. It would need a transformation in the way it works. And I believe such a transformation is visible at the PGH today both in the Hospital and in its financials.
But, having opposed the PGH deal with Medanta, my views may be prejudiced. I would therefore request that Parsiana independently verify the facts about the improved financials and medical infrastructure and inform readers about the same.
It would be worthwhile to look at the improved financials of PGH over the last five years (see Tables 1 and 2 below) as well as the improved medical facilities and infrastructure at the Hospital. I have personally always believed that a trust with over a hundred crores in liquid assets and with a few hundred crores in immovable assets would never need a further Rs 160 crores by way of donations to survive. It would need a transformation in the way it works. And I believe such a transformation is visible at the PGH today both in the Hospital and in its financials.
But, having opposed the PGH deal with Medanta, my views may be prejudiced. I would therefore request that Parsiana independently verify the facts about the improved financials and medical infrastructure and inform readers about the same.
ZORU BHATHENA
zoru@hotmail.com
zoru@hotmail.com
The editors reply:
A fairer assessment of PGH’s "loss making” is reflected in the income and expenditure statement (see Table 3 below). The Hospital’s balance sheet entry for March 31, 2022 shows an expenditure of Rs 37.43 crores (USD 4.6 million) while operating income from providing medical services and other miscellaneous items is Rs 23.21 crores (USD 2.6 million). The deficit of Rs 14.22 crores is covered by donations and interest earned from investments. The worry is while the community continues to dwindle, the inflow of donations and income will lessen while costs will continue to increase.
The proposal by donors Pervin and Jal Shroff was to set up a cosmopolitan, for profit hospital from whose turnover and lease fees PGH would have a long-term, sustainable source of revenue.
The Bombay Parsi Punchayet has an annual loss of Rs 14 crores and makes ends meet by auctioning charitable flats to the highest donor and by breaking fixed deposit receipts. They receive negligible donations and have no long-term solution to their financial woes. Once there are no buyers and the savings dry up, their future is in peril.
A fairer assessment of PGH’s "loss making” is reflected in the income and expenditure statement (see Table 3 below). The Hospital’s balance sheet entry for March 31, 2022 shows an expenditure of Rs 37.43 crores (USD 4.6 million) while operating income from providing medical services and other miscellaneous items is Rs 23.21 crores (USD 2.6 million). The deficit of Rs 14.22 crores is covered by donations and interest earned from investments. The worry is while the community continues to dwindle, the inflow of donations and income will lessen while costs will continue to increase.
The proposal by donors Pervin and Jal Shroff was to set up a cosmopolitan, for profit hospital from whose turnover and lease fees PGH would have a long-term, sustainable source of revenue.
The Bombay Parsi Punchayet has an annual loss of Rs 14 crores and makes ends meet by auctioning charitable flats to the highest donor and by breaking fixed deposit receipts. They receive negligible donations and have no long-term solution to their financial woes. Once there are no buyers and the savings dry up, their future is in peril.
Homa Petit, president of The B. D. Petit Parsee General Hospital, replies:
We would like to correct any impression that may be created that the The B. D. Petit Parsee General Hospital makes a surplus from its treatment of patients. The fact is that the Hospital has a huge recurring deficit (as shown in Table 3).
While every effort is made to control costs, we aim to provide the best medical treatment to members of the community and particularly the disadvantaged section. Deficits cannot be avoided or even reduced as more than two-thirds of the patients are treated entirely free of cost and a little over one-sixth are provided treatment at highly subsidized rates. The remaining patients being predominantly from the middle class, charges are intentionally kept lower than in comparative private hospitals. Daily, in the outpatient department, 25 to 30 patients are treated free or at highly subsidized rates.
The operating deficit is met from investment income, transfers from interest earned on the Munsiff Fund and in-aid donations (shown in Table 4 see below). The interest income is insufficient to meet the deficit which can keep on increasing because of inflation. The Hospital therefore continues to be dependent on generous donations from members of the community. If through donations the endowment funds could be increased and higher interest generated, there would be a more permanent source of revenue to meet the deficit.
It has been our endeavor to constantly improve the infrastructure to provide enhanced facilities to the community and have introduced a CT-Scan machine and started dialysis facilities for outpatients. Several other initiatives are under consideration but many are limited by the viability of the initiative given the small size of the community in Bombay.
We are confident that our endeavors will continue to enjoy the support of the community.
We would like to correct any impression that may be created that the The B. D. Petit Parsee General Hospital makes a surplus from its treatment of patients. The fact is that the Hospital has a huge recurring deficit (as shown in Table 3).
While every effort is made to control costs, we aim to provide the best medical treatment to members of the community and particularly the disadvantaged section. Deficits cannot be avoided or even reduced as more than two-thirds of the patients are treated entirely free of cost and a little over one-sixth are provided treatment at highly subsidized rates. The remaining patients being predominantly from the middle class, charges are intentionally kept lower than in comparative private hospitals. Daily, in the outpatient department, 25 to 30 patients are treated free or at highly subsidized rates.
The operating deficit is met from investment income, transfers from interest earned on the Munsiff Fund and in-aid donations (shown in Table 4 see below). The interest income is insufficient to meet the deficit which can keep on increasing because of inflation. The Hospital therefore continues to be dependent on generous donations from members of the community. If through donations the endowment funds could be increased and higher interest generated, there would be a more permanent source of revenue to meet the deficit.
It has been our endeavor to constantly improve the infrastructure to provide enhanced facilities to the community and have introduced a CT-Scan machine and started dialysis facilities for outpatients. Several other initiatives are under consideration but many are limited by the viability of the initiative given the small size of the community in Bombay.
We are confident that our endeavors will continue to enjoy the support of the community.
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