07282016 business

Page 1

THURSDAY, JULY 28, 2016

business@tribunemedia.net

economy NHI threatens 20% Bahamian ‘as low as it can go’ rise in doctor costs By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

Rival proposals to boost care efficiency, quality

The Government’s proposed National Health Insurance (NHI) scheme threatens to increase doctors’ costs by “at least 20 per cent”, amid competing proposals to reform the profession’s relationship with insurers and the Government. With the Christie administration desperate for progress on its longpromised heathcare reforms prior to the general election, rival groups are proposing that private doctors/physicians form themselves into an Independent Practice (Provider) Association. Such an Association, or IPA, would negotiate insurance contracts with both the Government’s NHI Authority and private sector providers on behalf of its members, allowing those doctors to focus on the quality of patient care and the latter’s experience, as opposed to managing costs and administrative

Doctor: Bahamas not getting ‘value for money’ Govt targets NHI Bill to Parliament next month

Dr Conville S Brown

issues. Tribune Business has obtained both the competing proposals, one from a Partnership of Healthcare Providers (PHP), a Bahamian grouping, which appears to be based on presentations by the JPIA Network. That is an organisation of international Independent Provider Associations (IPAs) that provides services to 300,000 independent doctors in the See pg b7

‘Tragedy’ for regulation to force business closure

Harbour Island’s ‘extreme damage’ from power woes

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

Tribune Business Reporter

The Chamber of Commerce’s chief executive yesterday said it was “a tragedy” if government regulations forced business closures, as he again called for “market forces to prevail” over price controls. Edison Sumner told Tribune Business that the impending closure of Paul W. Albury & Sons, the Champion tomato paste manufacturer, after a more than 60-year history “speaks to the challenges we’re facing across the country with the economy”. The company, in a letter to consumers, said the costs it would incur to remain in business were just too great, after sustaining significant losses over the past 18 months. It blamed this on a combination of price controls, which allowed it just a 12 per cent mark-up on 70 per cent of its products, plus in-

Chamber ‘grieved’, especially if ‘avoidable’ Concern on reasons for manufacturer’s shut-down Calls for market forces to ‘prevail’ over price control creased taxes and the weak economy. With revenues constrained, and costs rising, Paul W. Albury & Sons is set to close on August, joining other historic brands, such as City Markets and John S George, in ceasing trading over the past few years. Promising that he would “reach out” to See pg b6 TURN-KEY INVESTMENT

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nmckenzie@tribunemedia.net Harbour Island’s power outage woes have caused “extreme damage” to its reputation as a tourism idyll, Tribune Business was told yesterday, with resident businesses renewing demands for the island to have its own power plant. Dr Leatendore Percentie, who operates the Tingum Village Guesthouse, said: “The power issue is destroying a lot of businesses. We all know that Harbour Island has some of the most elite visitors in the world who have many destinations to choose from. “Even though many of them favour Harbour Island, we have lost business because they have gone elsewhere due to the inability of the island to give reliable service. “A lot of the services are interconnected, such as Internet and water. The marinas all feed off of Ba-

Businesses renew calls for island’s own power plant hamas Power and Light as well. When the electricity is off, a lot of the mega yachts will simply leave. Whenever things start happening there is a ripple effect throughout the community, the food stores, the hotels and the restaurants.” Bahamas Power & Light (BPL) chief executive, Pam Hill, reportedly met with a small group of Harbour Island tourism and business stakeholders on Tuesday night, following an especially bad week for power outages and surges across Eleuthera. While not commenting on the details of that meeting Dean Spychalla, vicepresident and managing director of Valentine’s Residences Resort and Marina, told Tribune See pg b4

The Bahamian economy has “gone as low as it can go”, with the Chamber’s chief executive yesterday conceding that progress on improving the ‘ease of doing business’ was not happening “as fast as we’d like”. Edison Sumner told Tribune Business that the business community’s “vexing concerns” had to be addressed by a Governmentprivate sector partnership if the Bahamas was to develop a “thriving” economy. He identified price controls; the need for companies to present Tax Compliance Certificates (TCCs) to obtain payment from government agencies; ValueAdded Tax (VAT) refunds; and the new Customs Management regulations impacting the transportation/ logistics industry as being among the Chamber’s primary issues to address. “At this point in time, it’s not an easy economy to work through,” Mr Sumner told Tribune Business. “We believe at the Chamber that we’ve seen probably seen the bottom of the economy, and that it’s gone as low as it can go, unless there’s something adverse that happens that has not been forecast.” He added: “We hope that we’ve seen this bottom, that the economy has bottomed out, and that we can bounce back and rebound from this. “It’s going to require some work from the Government, the Chamber and private sector to develop the kind of economy that causes business to thrive and grow.” Acknowledging the numerous impediments to the smooth conduct of business in the Bahamas, Mr Sumner said the Chamber had been due to meet senior Ministry of Finance officials, plus the head of the Inland Revenue Department, yesterday afternoon. “We are making progress, but not at the pace See pg b7

Chamber chief hopes it has ‘bottomed out’

Ease of business progress ‘not as fast as we’d like’ Tax Certificates, VAT refunds ‘vexing concerns’

Edison Sumner

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