Financial matters were briefly discussed at this week's Southern District Health Board meeting in Invercargill during the 40 minutes the public were allowed to attend.
Chairman Joe Butterfield said it was "inevitable" the financial situation, which includes a $3.1 million blowout on doctors' wages contributing to a forecast $9.2 million deficit, would be discussed with the public excluded.
Speaking after the meeting, Mr Butterfield told the Otago Daily Times he had been able to assure board members there had been no "gross mismanagement" of funds, a question he raised at last month's meeting in Queenstown in frustration at cost overruns.
He said the board must find cheaper ways to provide services, which might mean moving some things from hospitals to primary care.
However, any such change must not affect service quality, he added.
At the meeting, board member Richard Thomson said that with three months remaining before the end of the year, the financial impact of leave not taken could worsen.
That could mean being as much as $1.5 million over budget, he suggested.
Finance staff hope that once counted, Easter softens the annual leave provision. April's figures are yet to be reported.
Finance and funding general manager Robert Mackway-Jones said a forecast was always an estimate, rather than an exact figure.
The issue was also discussed at Wednesday's hospitals' advisory committee.
At that meeting, Southland chief operating officer Lexie O'Shea suggested staff in departments which had vacancies were less likely to take leave.
