Ashburn bid to bolster finances

Ashburn Clinic, in Dunedin, is to start fundraising in the hope of securing about $500,000 a year to help shore up its financial position.

The private psychiatric hospital, which cut staff in 2010 to deal with a $900,000 shortfall, was not facing further staff cuts, but did need to increase revenue, board chairman Bruce Smaill said.

Ashburn would post a financial loss in 2011-12, but Mr Smaill did not want to publicly release the preliminary figure until it was settled.

Staff losses were "not on the table", although the clinic wanted to trim operational costs, in areas such as the kitchen.

It was the first time the clinic had fundraised, but it had always accepted informal donations.

The recession has not been kind to Ashburn, which had to cope with the loss of paying patients, and lucrative public sector contracts.

The clinic would pitch itself to funders as a unique Dunedin institution with a special approach to clinical practice.

"It's been going since 1882 and none of us who are now involved - and I've been involved since 1978 - want to see the place have to either close, or to reduce in operation, or whatever, simply because there's no money."

There was no set amount, but $500,000 or so a year would be "tremendous".

Fundraising in Dunedin seemed "relatively easy", he said.

Staff planned to meet Otago Community Trust representatives to discuss an application, and planned approaches to other funding bodies, including gaming trusts.

An additional staff member might be hired to manage the process, which would be kept in-house to minimise overheads.

While most community funders did not give out money for wages, Ashburn had high operational costs for which grants could be used, including maintaining its substantial grounds.

"We can't wait around and rely on the Ministry of Health and the Government to provide us with operating funds in whatever way they elect to do it. We know the mental health system and the Government is under stress funding-wise ... "

However, Ashburn remained "fundamentally dependent" on the Government.

"If the Ministry of Health and the Government do not want Ashburn and do not continue to provide at least the funding they're providing now - and we need it to be increased marginally - then the place won't operate."

The clinic expected to learn in the next month its level of government funding.

Ashburn was working closely with the Southern DHB, an example being when it stepped in this year to provide accommodation for Hulme House residents when the High St building was evacuated because of earthquake risk.

Ashburn was likely to tender for the Hulme House accommodation contract since the DHB had decided to outsource it, provided the terms of the tender proposal were acceptable.

The clinic's website says Ashburn, more relaxed than a traditional hospital, encouraged a high level of patient input, both into their treatment, and how the facility was run.

eileen.goodwin@odt.co.nz

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