Hospitals remain wary of funding position

Ray Anton.
Ray Anton.
Negotiations over proposed across-the-board 5% funding cuts might not be going as well as Southern District Health Board chief executive Carole Heatly believes.

She told audiences at public meetings on the health cuts in Alexandra and Cromwell this week the board had reached agreement with Gore, Maniototo and Balclutha hospitals.

But Clutha Health First chief executive Ray Anton said yesterday that was not quite the case, as far as his company was concerned anyway.

''I think that was misinformation, actually.''

Clutha Health First made the DHB a counter-offer to the proposed cuts on May 14.

And though the DHB's executive director of planning and funding, Sandra Boardman, told him over a coffee the DHB was ''in principle in agreement with [the] counter'', Mr Anton said that did not, to his mind, indicate an end to negotiations and, as far as he was concerned, the two organisations were still in discussions.

''That's not enough for me. Let me see your letter of response, so I can see it clearly.

''If it says everything exactly the way I want it said, then I would take it to my board immediately ... ''

Mr Anton said he was optimistic that Clutha Health First would not ''go down the track of Central [Otago Health Services Ltd]'' with public health meetings, although the community would be updated at the company's annual community meeting, tentatively called for June 10.

Asked if it was misinformation that an agreement had been reached, Ms Heatly stuck to her guns yesterday.

''After concluding constructive negotiations, we have an agreement in principle with Clutha Health First which now has to be ratified by our respective boards,'' she said.

She had no further comment.

Gore Hospital could not be reached, but Maniototo Hospital Services Ltd general manager Geoff Foster said it had reached a settlement with the DHB for a 5% cut in funding on a contract for an extended term.

Mr Foster said the value of the contract was subject to annual review and Maniototo Health, which runs the Maniototo Hospital and Chalet Rest Home, would continue to provide the same level of services.

''While the reduction in contract value impacts upon our ability to develop our facility and achieve further efficiencies, as well as increasing the financial risk from any reduction in our variable income streams, we believe ... are well positioned to advance the regional strategic direction being advanced by the SDHB, with whom we are meeting to discuss possible additional future revenue streams,'' Mr Foster said.

Meanwhile, a Cromwell GP has joined the list of those concerned about proposed funding cuts that would affect Dunstan Hospital.

Dr Greg White, a rural GP with 15 years experience in Central Otago, copied the ODT into a letter he sent the DHB and others yesterday saying the ''stark reality'' that had not been stated clearly so far was ''the fact people may die due to the proposed cuts'' because of the distance they would have to travel for other care if beds were closed at Dunstan Hospital due to funding reductions.

The DHB's chief medical officer David Tulloch yesterday responded to Dr White's letter: ''I can reassure the community that patient safety is our highest priority and we will not be asking Central Otago Health [Services] Ltd to agree to anything which affects this.''

A process to see where savings could be made was being worked through and the DHB did not want to see a reduction in the core health services Dunstan Hospital provided, he said.

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