Home support providers have told the Southern District Health
Board they cannot provide the service within current funding.
Three large providers based in the North Island replaced an
array of home support providers in a controversial shake-up
Southern District Health Board planning and funding director
Sharon Boardman told last Thursday's board meeting staff were
reviewing information about client demand that had determined
what providers were paid. The process was expected to take a
couple of weeks.
''[There is a] financial impact on them that they have
indicated they can't sustain,'' she said.
Asked if the old providers had had economies of scale to
provide the service more cheaply, Ms Boardman suggested to
the Otago Daily Times by email this was not the case.
''Southern District Health Board changed the basis of payment
for home and community support services from one based on fee
for service, to a bulk-funded model, which aims to maximise
user independence. ''This is the first stage in a new process
which delivers improved service to the community and it is
natural that there has to be some change to funding as it
''The changes are not related to the size or number of
providers but are related to the needs of users.''
It was unclear whether the board would recompense providers,
but members were warned home support was one of the items
contributing to a potentially worse-than-expected deficit
this financial year.