Bharatpur: The BP Koirala Memorial Cancer Hospital is grappling with significant financial challenges as it struggles to sustain operations while offering predominantly free services. The government hospital, which is the central hub for cancer treatment in the country, has expanded its services extensively, yet this has led to severe financial constraints.
According to National News Agency Nepal, a substantial backlog of payments from various government entities has exacerbated the hospital’s financial woes. Executive Director Dr. Shivaji Paudel revealed that a staggering Rs 416 million 750 thousand is still owed to the hospital by several government agencies. The Health Insurance Board owes the largest portion, amounting to Rs 258.8 million, while Rs 126.7 million is pending from the federal government for treatments provided to the impoverished.
Additional dues include Rs 6 million 225 thousand from Bagmati Province, Rs 9 million 918 thousand from Lumbini Province, and Rs 1 million 59 thousand from Gandaki Province, all under the category of treatment for the impoverished. Because of these pending payments, the hospital also faces its own liabilities. Dr. Paudel mentioned that the hospital still owes Rs 191 million 715 thousand for salaries, employee provident fund contributions, civil investment trust, and other regular maintenance costs.
Furthermore, the hospital has an outstanding payment of Rs 97.7 million for medicines procured from the pharmacy. It has also been unable to fulfill the Rs 45.7 million contribution requirement for 18 employees who retired this fiscal year. Presently, the hospital holds Rs 82.8 million in its current account, which is just enough to cover salaries and three months of employee dues, as well as deposits for the Citizen Investment Trust and the Employees Provident Fund.
Dr. Paudel emphasized the difficulty of maintaining regular hospital operations due to these financial constraints, impacting routine maintenance, urgent purchases, and medicine procurement. The hospital’s monthly salary and allowances total around Rs 50 million, with a workforce of 713 staff members, including 95 doctors.
In the current fiscal year, the government allocated Rs 241.78 million from the tax fund to support the hospital’s operations. However, the annual expenditure solely for salaries and allowances surpasses Rs 600 million. Consequently, the hospital has been relying on its internal income to manage the remaining expenses.