The Southern District Health Board has rejigged top staff
to allow two senior executives to focus solely on cost
A new director of operations has been created for at least
three months to free up patient services director Lexie
O'Shea to oversee financial targets.
Chief executive Carole Heatly told health board staff last
week she was also now taking a closer interest in board
In an emailed appeal to staff, she said the 2013-14 deficit
would be ''well above'' the forecast $9 million shortfall.
''As part of this action I will be taking a much stronger
oversight of the financials, together with the executive
directors of finance and patient services, until such time as
I am satisfied we are tracking to our budgets, and delivering
our savings plans for 2014-15,'' Ms Heatly said in the email
obtained by the Otago Daily Times.
The ODT reported yesterday that non-clinical
recruitment would be frozen for three months, and some travel
''If we are going to provide improved services to patients
and the community then we must find a way to live within our
means as a DHB.
''Until we can do this, we will struggle to afford the new
buildings we so desperately need,'' the email said.
Finance head Peter Beirne would also work exclusively on cost
reduction and financial targets.
The director of operations was appointed internally, the role
to be reviewed in three months. Head of nursing and
midwifery, Leanne Samuel, would temporarily take on IT,
estates, human resources, and quality.
Mrs Samuel would receive extra support in her nursing and
In an interview with the Otago Daily Times yesterday,
Ms Heatly said extra cost created by the changes was minimal.
Sharon Mason, the new director of operations, would receive
an allowance for ''acting up'' in the role.
Ms Heatly hoped the changes helped the financial situation in
the last couple of weeks of the financial year, as well as
next year's targets.
Mrs O'Shea and Mr Beirne would look at ''everything'' to find
savings, but it would not affect patient services.
The ''big prize'' for staff from cost-cutting was putting the
board in a position to afford the capital development funding
needed for the Dunedin Hospital rebuild.
Asked if she had not been paying enough attention previously
to the board's finances, Ms Heatly said no.
''I'm Scottish and I always take an interest in finances.
It's part of our culture.''
The role of chief executive was extremely broad, but the
financial component now required more attention to provide
leadership from the top.
The senior doctors union was unimpressed by the move.
Association of Salaried Medical Specialists executive
director Ian Powell said a narrow focus on short-term cost
cuts risked unintended consequences.
It was now somewhat ''old fashioned'' to split financial
management from overall healthcare management, he suggested.
Freezing non-clinical recruitment pressured the clinical
''The last thing you want is specialists being their own
The move was further evidence of the huge financial pressure
on health boards, Mr Powell said.