The Southern District Health Board could end the year with a deficit $10.5 million less than expected.
Board members will tomorrow consider a report showing the latest deficit forecast for the end of June is $4.4 million, compared with the budgeted figure of $14.9 million.
The board received more than $5 million in extra revenue in the 10 months to the end of April.
Among the reasons for the improved position are the receipt of $900,000 for elective surgery done the previous year, $1.9 million for upgrading linear accelerators' software, $1.4 million less spent on mental health because of unfilled positions, $2 million less spent on infrastructure and $1.9 million lower costs for medicines.
Acting chief executive Lexie O'Shea reported rest-home care was still the main item unfavourable to the budget, at $3.571 million higher than planned.
The board, which has annual revenue of more than $808 million, has been under pressure to reduce its deficit and is expected to break even by 2013-14. Last year, Health Minister Tony Ryall approved only a one-year plan for the board because of its ongoing deficits.
The board's draft plan for the next financial year and a draft financial model feature in the 12 items on the closed part of tomorrow's board agenda.
The reason given for the confidentiality is that the annual plan is subject to ministerial approval. This is also given as the reason for discussing the Maori health action plan in private session.
