The Southern District Health Board's financial outlook for
the next six months has slipped, with the board's finance
chief forecasting a $10 million deficit.
In November, finance and funding general manager Robert
Mackway-Jones hoped the DHB would be ahead of its budgeted
$10.5 million deficit by about $4 million, but a report to
tomorrow's meeting reveals that has changed.
In his report, Mr Mackway-Jones said that while the DHB's
year-to-date deficit of $1.1 million was $4.2 million better
than budget, its financial performance would deteriorate in
the final half of 2011-12.
Factors contributing to the worsening situation included
potential write-downs of building values due to them not
meeting the minimum building code (the old obstetrics
building at Southland Hospital, now used for storage;
Dunedin's Hulme House, from which occupants were moved last
month to Ashburn Clinic as an interim measure).
Other factors were less revenue from other DHBs
(inter-district flows); pharmaceutical revenue changes;
filling more mental health positions; elderly residential
care costs not declining as expected; medical costs
increasing; instrument and equipment costs increasing due to
commissioning major assets; increased repair and maintenance
costs.
Factors in the good year-to-date result included $1.3 million
mental health underspending; unspent primary health
organisation funds; between-DHB one-off payments;
below-budget hospital and pharmaceutical spending; lower
governance fees.
• At its meeting tomorrow, the board will discuss a new
mental health and addiction service plan.
In development for more than a year, the plan is the first of
its kind and will help determine how money is spent on
services.
In her report, acting chief executive Lexie O'Shea said
management sought approval to consult the public on the draft
plan, to start this month. The plan will also be considered
at today's shared disability support and community and public
health advisory committee, also in the public excluded
session.
eileen.goodwin@odt.co.nz
A name, residential address, and (preferably residential) telephone number is required from readers who comment on ODT Online. These details will not be visible to site visitors.