Surplus by provider of health services

George Berry
George Berry
A small surplus for the first six months of this financial year has been achieved by Waitaki District Health Services Ltd in providing health services for the Waitaki district and operating the Oamaru Hospital.

The company is wholly owned by the Waitaki District Council and is part of a group that includes the Waitaki District Health Services Trust, which holds and invests bequests, donations and company surpluses.

Company chairman George Berry, in his half year report to December 31, said satisfactory trading results had been achieved, a surplus recorded and directors expected, if budgets continued to be met, the year end result at June 20 should be an overall trading surplus.

In the first six months, the company had an operating surplus of $67,046 for the hospital and health services. However, after a $116,170 expenditure allowance for a retirement complex being investigated for the Hospital Hill, the company finished the half year with a deficit of $49,124.

When the Waitaki District Health Services Trust was taken into account as part of the group, there was an $86,510 surplus.

''The directors consider the current position and trading outlook of the company and trust to be, in all respects, satisfactory,'' he said.

The company is funded through the Southern District Health Board (SDHB), but the board's failure to fully pass on government revenue increases was a continuing concern because increases in costs, particularly wages, were not being matched by the board.

There had also been a decline in revenue from other sources, mainly the Accident Compensation Commission, which was being closely monitored.

''Otherwise, the half year has involved business as usual and the hospital and community services we provide,'' he said.

A nursing staff review had been completed and recommended changes implemented, no significant health nor safety issues had arisen, the Takaro Lodge unit had generally been fully occupied, and audits and related requirements satisfactorily completed with no significant issues.

The half year report will be considered by the council's finance, audit and risk committee on Wednesday.

david.bruce@odt.co.nz


The figures
Waitaki District Health Services Ltd figures - Half year result to December 31 

• Income $5.903 million
• Expenses $5.836 million
• Operating surplus $67,046
• Observatory Village cost $116,170
• Deficit $49,124.
• Net assets $12.568 million.


Add a Comment