Financial pressure on the Southern District Health Board is
affecting its ability to buy equipment, the board's 2013-14
annual plan says.
Released yesterday, it said the board found it difficult to
replace equipment within ''normal'' time frames.
''Many assets are currently utilised well beyond their
technical-use lives, with replacements effectively happening
based on when the item breaks or loses complete
Finances would need to improve before the board could afford
to replace equipment proactively.
''Consequently, the DHB currently carries a degree of risk
with its asset base and servicing ability.''
The board found $11.5 million savings in 2013-14 as part of a
financial recovery plan.
A $9 million deficit was forecast, but meeting it was still a
Building work was severely restricted by the financial
situation, but $3.4 million had been allocated for a
dedicated education/administration block, the proposed
location of which was not given.
At present, there are several ''non-compliant''
Because of facility constraints, particularly in Dunedin,
beds in rural hospitals would be better utilised.
The board had 3670 full-time equivalent employees, and had
workforce pressures because of service demands.
These would be partly addressed through a ''fundamental
change in the relationship'' with the GP care sector.
A burgeoning ''alliance'' body led by University of Otago
Prof Robin Gauld would deliver a first work plan next month.
This would include plans to shift some minor surgery into the
community, and give GPs better access to radiology services
and specialist advice.
In his formal letter of approval, Health Minister Tony Ryall
said his approval was subject to an acceptable cost-saving
plan being submitted to the National Health Board by October
''I will be watching with keen interest your management of
financial performance during 2013-14, including the delivery
of the specific improvement initiatives supporting your
planned net result.''