Chairman's Report August 2010

­­­­­­­­­­­­­­­­­­­­­­I have just returned from Jerusalem.  This report is very overdue but, as my last visit was expected in April and was cancelled because of the Icelandic volcanic activity, I thought it best to delay my report to you until after this trip.

Hospital activity

We have still not wholly resolved the problems with the Palestinian Authority (PA).  You will recall that in September 2009 the PA, without warning, reduced its referrals to all the hospitals and clinics in our Group.  The lack of referrals has eased but has not returned to the level it was at before September.  All hospitals in east Jerusalem have been affected, as have private practitioners throughout the West Bank.  In our Group, Hebron in particular has suffered (see below).

Despite this difficulty, and contrary to expectation, there has been a remarkable surge in patients attending for treatment throughout the Group, except in Hebron.  There has been a consequent increase in income from patients, although not in proportion to the numbers seen.  This is because many of the patients claim refugee status and are subject to exemptions.  When funded by UNWRA, we get only a very small proportion of the true cost of patient treatment.  Nevertheless, this is a very encouraging trend.  We are exploring ways in which we can offer more treatment to patients through a Patient Relief Scheme, although this would imply yet another demand on the already overstretched voluntary donations.

Hebron Hospital

The Hebron Hospital has been remarkably successful since it was opened in 2005.  However, last year we noted a 10% drop in attendances, dating from the time the PA opened an eye department in their hospital in the city, and this trend has been maintained this year.  The PA unit is well staffed, mostly by St. John trained doctors.  Patients are offered free treatment and therefore have little choice but to seek treatment there and, in any case, the PA refers all its local patients to their own unit.  Patient activity, both in outpatients and theatre, has been affected.  As both this Hospital and our clinic in Anabta are approximately 50% funded from the Group as a whole, this is putting a considerable strain on our finances, particularly at a time when voluntary income is reduced.  Although it is to be hoped that this situation will ease in the second half of 2010, the Board may have to take tough action over the future of this Hospital.

Anabta Clinic

In contrast to the difficulty in Hebron, the Anabta clinic remains very strong.  Activity is high and shows no sign of being similarly affected.  We have a very good relationship with the Palestinian Red Crescent Society (PRCS) who own the building and who occupy the ground floor.  Indeed the PRCS are keen that we should build another floor containing an operating theatre.  The Board is, at present, attempting to evaluate the risk of doing so, in the light of the response of the PA in opening its eye clinic in Hebron – it is possible that they would do the same in a neighbouring town to Anabta.

Fund raising

There is a disturbing reduction in voluntary donations so far in 2010.  Last year was exceptional but in 2010 it seems that the voluntary income deficit may be around £600,000.

There are some encouraging trends, however.  Through the mediation of a prominent Palestinian politician, who asks to remain anonymous, we have already received $500,000 as a most generous personal gift of the King of Jordan.  Our mediator remains optimistic and there are some signs that we may receive other large donations from other Middle East countries.  I will keep you posted about this.

I have, or am about to, visit most of the Priories.  It is extraordinarily encouraging to encounter such warmth towards our Hospital, and to me personally.  I would like to express my warm gratitude to those who have shown wonderful hospitality, as well as giving me an opportunity to tell Priory members about the Hospital's activities.  There are hopeful signs that Priory income, on which we have relied for so many years, is now beginning to grow.

Administration

As part of a major review of the London office, following an internal audit report, some important changes have taken place.  The London office is now predominantly a fund-raising department.  Most general administrative functions will now take place in Jerusalem and the post of Executive Officer in London will disappear.  Sadly, this has meant that Sylvia Holmes has left us and I would like to pay tribute to her 23 years of devoted and loyal service to the charity.

John Talbot July  2010