“We have one acute care hospital, and we must ensure its stability in serving the needs of the people of Bermuda.” A Government spokesman today reaffirmed that an increase to the Standard Premium Rate (SPR), as signaled in the 2025 Budget Statement, will be implemented in April 2026, to ensure the Bermuda Hospitals Board (BHB) has the funding required to deliver higher-quality, sustainable healthcare for all residents.

The spokesman continued: “This increase is also necessary to support the recently negotiated salary uplift and cost-of-living allowance (COLA) for nurses, clinicians, technicians, and support teams represented by the Bermuda Public Services Union (BPSU). These dedicated healthcare professionals provide essential frontline services, and ensuring they are fairly compensated is vital to maintaining a strong healthcare system.”

“While a multi-year payment schedule was originally anticipated, our healthcare professionals can be assured that the retroactive payments (totaling $38m) owed to BPSU staff will be fully met by the required deadline of 30 April 2026. To date, $11 million has already been allocated, with the remaining balance to be met through a combination of Government reprioritization and the SPR increase.”

This SPR increase is part of the previously announced plan to provide adequate and stable funding for the hospital amid rising global medical costs. Medical inflation, forecast to exceed 10% this year, has significantly increased the cost of care, equipment, and pharmaceuticals.

“Through the tough economic aftermath of the pandemic, the Government dictated that there would be no traditional increases to the SPR. The rate has been frozen for four years, since November 2021, during which the Government used allocated funds from the Excess Borrowing Fund to shield residents from increases. With costs continuing to rise, and with the new union agreement now requiring permanent funding, maintaining the SPR freeze is no longer sustainable.”