Hospitals would be subsidized for increased costs when electricity rates are hiked on Oct. 16, the Ministry of Health and Welfare (MOHW) said on Wednesday.
Electricity costs are set to rise by an average of 12.5 percent for industrial users and the medical community has been asking about subsidies to help it cope with the increase, the ministry said.
Prices increased 11 percent on average in April and were set to increase again by 14 percent this month following a resolution by the Ministry of Economic Affairs.
Photo: Lin Hui-chin, Taipei Times
However, after taking into account domestic demand and a decline in industrial output, increases for some users were halved or frozen, resulting in an average increase of 12.5 percent, the economic ministry said.
In a news release issued in response to concerns by hospitals and clinics, Taiwan Power Co (Taipower) said that the increase would not apply to clinics that use only as much power as a small business.
Regional hospitals would face an increase, but would be subsidized by the government as per normal practice, Taipower said.
Hospitals and large medical centers would assist with energy-saving measures to reduce the burden of electricity costs, it said.
“The Executive Yuan will fully subsidize regional hospitals for the price hike, which is expected to total about NT$300 million” (US$9.39 million), MOHW Department of Medical Affairs Deputy Director-General Liu Yu-ching (劉玉菁) said.
“That will come from the NT$100 billion budgeted annually for Taipower,” she added.
As the money would come from funds allocated by the Executive Yuan to subsidize Taipower, the health ministry would still need to discuss the reallocation with the Executive Yuan, Liu said, adding that National Health Insurance expenditure would factor into the discussion.
Regardless of what hospitals have asked for, the subsidies are guaranteed in the Electricity Act (電業法), she said.
For example, the Social and Family Affairs Administration could prepare a budget in accordance with the law to cover the additional expenses caused by any increase in electricity prices, Liu said.
“However, the act does not stipulate medical institutions. Unless the law is revised to include them, implementing such a special budget might be difficult in practice,” she said.
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