A Southern District Health Board multimillion-dollar savings
initiative mostly comprises depreciation changes and
targeting staff annual leave, the hospital advisory committee
heard this week.
Senior business analyst Grant Paris' report said the final
six months of 2012-13 would be challenging, as many savings
initiatives took effect. More than 80% of $8.457 million in
targeted savings between October 2012 and the end of the
financial year would be achieved by adjusting depreciation
rates to reflect the board's holding period of assets, and
increasing annual leave uptake.
The board's annual leave liability stood at $26.2 million at
the end of December. It was expected to improve once January
was counted, and also because of ongoing encouragement to
staff to take leave.
Mr Paris' report did not specify the other savings
initiatives for the rest of the money. Board member Richard
Thomson queried why spending on telecommunications was
$249,000 over budget in the first six months of the year,
especially as it was a competitive market. Mr Paris said he
was expecting a report on the matter which he would supply to
the board's next meeting.
Mr Paris said December was ''very good'' financially, with
the board spending less on hospital services than planned,
partly because of no elective surgery outsourcing.