Doctors' pay blowout

Joe Butterfield.
Joe Butterfield.
Southern District Health Board hospital doctors' salaries were $865,000 over budget in February, despite a warning from DHB chairman Joe Butterfield to get them under control.

The hospitals' advisory committee will consider senior business analyst Bron Anderson's financial report at its meeting today in Queenstown.

When combined with locum costs, which were less than expected, the overspending was $680,000.

Year-to-date doctors' salaries were $2.4 million more than budgeted for, $1.8 million taking locum costs into account.

Ms Anderson's report cited additional recruitment of doctors and higher-than-expected rates of overtime for the overspending, the same reasons given last time.

Nursing salaries, which in January were less than budgeted for, were $24,000 more than expected in February, but year-to-date were still favourable by $1.7 million.

The DHB's provider arm returned a $73,000 deficit in February, rather than the projected surplus of $1.1 million.

At the board's last hospitals' advisory committee meeting, in late February, Mr Butterfield said overspending $597,000 on doctors was "a bit of a shock".

It must not be repeated, he said.

"I just hope like hell you've done your work properly," he said at that meeting.

Taken with locum costs, the overspending was $563,000 in January.

While the board's provider arm is costing more than expected, the contracted-out sector was better than expected, a financial report to tomorrow's full board meeting said.

Savings in mental health ($1.6 million), primary health ($900,000) and home support ($600,000) are reducing the year-end expected deficit.

The DHB deficit was expected to finish the year $4.4 million better than its budgeted $10.9 million deficit, finance and funding general manager Robert Mackway-Jones said in his report.

eileen.goodwin@odt.co.nz

 

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