Deficits still likely to blow out

Extra funding for district health boards announced in the Budget falls well short of the sector's needs, CTU economist Bill Rosenberg says.

Boards received an extra $320 million in Budget 2015, about $120 million short of the amount needed for rising costs, Mr Rosenberg said.

All up, health was $260 million short of what it needed, based on the CTU's preliminary analysis of the Budget.

It meant continued pressure on wage negotiations and restricted health services.

''It will probably mean some further blow-out in deficits.''

''It will certainly mean greater pressures on DHBs to save money somewhere by constraining services in some way.''

Mr Rosenberg said increases in health worker wages had lagged other sectors since the financial crisis.

Population growth and the ageing population were fuelling cost increases.

The Southern District Health Board, which is in cost-cutting mode, had a ''significant deficit'', and had clearly been told to ''solve that problem''.

The coming year would see more of the same pressures on Southern, Mr Rosenberg believed.

Also announced in the Budget was $12.4 million to extend the bowel cancer screening pilot at Waitemata District Health Board by two years to December 2017.

The move has bitterly disappointed bowel cancer campaigners who are pushing for a national screening programme.

Bowel Cancer New Zealand executive committee member Sarah Derrett described the extension as ''nothing more than a stalling tactic''.

Health Minister Dr Jonathan Coleman said the Government was considering the next steps for introducing a national screening programme, but the biggest issue was having the workforce to do the colonoscopies.

Dr Coleman said the health budget would reach $15.9 billion in the coming year.

The Budget invested about $1.7 billion over four years in new initiatives and to meet cost pressures and population growth.

''District health boards will have around $320 million available next year for extra services and to help meet cost pressures and population changes.''

An extra $98 million for elective surgery and orthopaedic conditions comprised $48 million over four years to increase elective surgeries by an average of 4000 a year, and $50 million over three years for orthopaedic and general surgeries.

It included $6 million to set up early intervention orthopaedic teams.

Hospices received a $76.1 million boost over four years. It would allow the recruitment of 60 new nurse specialists, palliative care educators and other roles at hospices.

eileen.goodwin@odt.co.nz

 


 

Health

• Spending hits $15.9 billion

• Two-year extension of bowel cancer screening pilot

• $98 million for elective surgery and orthopaedic treatment and prevention

• $76.1 million for hospices

• $320 million for DHBs 


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