CHITWAN: The BP Koirala Memorial Cancer Hospital in Bharatpur is grappling with a severe financial crisis, primarily driven by its commitment to providing free services and the failure of government agencies to settle outstanding payments.
The hospital, which serves as Nepal’s central hub for cancer treatment, has reached a point where it is struggling to pay its staff and settle liabilities for retired employees.
Executive Director Dr. Shivaji Paudel revealed that various government bodies owe the hospital a staggering Rs 416.75 million. The largest portion of this debt, Rs 258.8 million, is pending from the Health Insurance Board. Additionally, the federal government owes Rs 126.7 million for the treatment of impoverished patients, while provincial governments—including Bagmati, Lumbini, and Gandaki—owe millions more under similar headings.
This lack of liquidity has paralyzed the hospital’s internal finances. Currently, the hospital’s liabilities stand at Rs 191.7 million, covering unpaid salaries, employee provident funds, and regular maintenance costs. Furthermore, the hospital owes Rs 97.7 million for medicine procurement and has been unable to pay Rs 45.7 million in benefits to 18 employees who retired this fiscal year.
With only Rs 82.8 million remaining in its current account, the hospital can barely cover salaries and employee dues for the next three months. “Regular operations have become difficult,” Dr. Paudel stated, noting that routine equipment maintenance and urgent medicine purchases are now at risk.
The financial strain is exacerbated by the gap between government funding and actual costs. While the government allocated Rs 241.78 million from the tax fund this year, the hospital’s annual expenditure on salaries and allowances alone exceeds Rs 600 million.
For a facility with 713 staff members, including 95 doctors, the monthly payroll exceeds Rs 50 million, leaving the hospital heavily dependent on internal income and timely government reimbursements that have yet to arrive.
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