Health Minister Tony Ryall accepts that delaying cuts to
housework help to some elderly people in Otago and Southland
will mean the district health boards will take longer to
balance their books.
In an email statement to the Otago Daily Times
yesterday, he said the safety of the older people receiving
these home support services was his first concern.
"If looking after them means the DHB has to take a bit longer
than planned to make their changes, then that is fine."
The Government had inherited $20 million worth of unfunded
services in Otago and Southland, and that could not be "fixed
overnight".
The Government had always said it would take time for the two
boards to begin living within their means, he said.
Last month, Mr Ryall said he had made it "very clear" to the
Otago board he expected an improvement in its financial
management in the next month.
Since then, the Otago board's expected end-of-year deficit
had fallen from an end-of-December forecast of $10.9 million
to almost $9 million.
This figure was still about $2 million above the original
budgeted deficit, and included extra savings from community
support to the elderly of an estimated $800,000.
Yesterday, boards' chief executive Brian Rousseau said it was
not yet known what impact delays announced this week to the
introduction of the home support cuts would have on the
end-of-year result.
When the controversial cuts were announced last month, it was
estimated they would save the two boards a total of about $4
million over a full year.
Mr Rousseau said it was hard to give details of the financial
impact without knowing how much slower the changes would be.
He was hopeful some of the board's other savings initiatives
would deliver savings sooner or greater than planned to help
balance the books.
Asked if Otago's much-needed capital works funding might be
under threat from delays to the savings, Mr Rousseau said he
hoped Mr Ryall would recognise the board's commitment to
achieve the savings.
"The quantum of savings will still be achieved, but not in
this financial year."
He noted that the February result for both boards was better
than forecast so "this may save our bacon".
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