A small surplus has been reported by community-owned company Waitaki District Health Services Ltd, which runs Oamaru Hospital and provides health services for the Waitaki district.
But the company is facing increasing pressure on its finances, particularly this year, with a continued decline in Accident Compensation Corporation-related revenue, changes to contracting methods by the Southern District Health Board and a persistent centralisation of services, despite the board's expressed intent to devolve services to rural hospitals.
Despite that, the company remains in a strong financial position, with retained earnings of almost $5.8 million.
In addition, the Waitaki District Health Services Trust, part of the group, has $5.431 million.
The company, wholly owned by the Waitaki District Council, reported a pre-tax operating surplus of $35,991 for 2013-14, compared with $1429 in the previous financial year.
Income was $11.989 million, compared with $11.915 million the previous financial year; expenditure was $11.953 million compared with $11.913 million in 2012-13.
However, added to the accounts was $112,563 spent so far investigating its proposal for the $21 million Observatory Hill retirement village.
That resulted in a deficit of $76,572, which may not be recovered if the company decides against going ahead with the project.
The company's directors had spent a significant amount of time on the project, which was now at the stage of detailed design so definitive costs could be obtained.
''The directors consider the growing needs of elderly residents in the Waitaki district do require the project to proceed,'' company chairman George Berry said in the annual report.
He did not believe there would be any undue impact on existing rest-home owners because the project would fill an unmet demand for independent living facilities.
The funding difficulties and shortfalls of the district health board, which contributed $9.75 million of the company's income in 2013-14, continued to be of concern to rural hospitals dependent on it for the quality and range of services provided to their communities.
The board's draft strategic health plan was to provide for better delivery of health services closer to communities and patients which, the company believed, could be provided on a more efficient and cost-effective basis.
Operationally, the hospital and community health services had continued to deliver the required quality and range of services to the Waitaki community required by the board's and other contracts.
The services contract with the board had been renewed, but with a provision for review dependent on the strategic health plan.
The statistics 2013-14
6721 medical beds occupied
1327 AT&R* beds occupied
93 births
165 postnatal services
7667 emergency department attendances
235 minor operations
9 mobile surgical bus visits
11,004 meals on wheels
9236 district nursing visits
436 day chemotherapy treatments
9937 primary referred radiology procedures
348 occupational therapy assessments
1949 physiotherapy treatments
203 AT&R day services
370 AT&R outpatients
898 AT&R home visits
*AT&R: assessment, treatment and rehabilitation.
