Obsolete equipment reducing services

A growing list of equipment at Dunedin Hospital which is near obsolete and constantly breaking down is forcing cuts to some services as the Otago District Health Board works to re-prioritise spending.

The radiology service has been sending letters of apology to patients who have been affected by breakdowns of the department's CT scanner more than once, while the gastroenterology service is working with equipment described as "almost obsolete".

Chief executive Brian Rousseau said the lack of capital expenditure was "very concerning" and had reached a point where it could no longer be put off.

"It is beyond the point of having a debate about it being a nice thing to do. It is becoming an essential thing to do, so something has got to give."

Access to some services was well above national average levels, Mr Rousseau said. He cited disability support services for the elderly and spending on community pharmaceuticals as examples, saying $16 million could be saved on those services alone.

"It is not a new issue."

The board had been reluctant to reduce services in the past and, as a result, there had been a lack of capital replacement, he said.

Reports to the board's hospital advisory committee said "several days" of appointments had been postponed, caused by CT scanner breakdowns, which had become a major issue.

The digital subtraction angiography (DSA) machine, which has an average lifespan of five to seven years, was nearly 10 years old and its replacement had been "deferred a number of times". It needs $250,000 of work done.

The board is still struggling to rein in budget deficits and the latest forecast for this year has blown out to a $12.6 million deficit.

Board managers have been given until Friday to come up with ideas on how they could make 5% savings on next year's budget.


ODHB deficit

Otago District Health Board says its deficit is mainly due to:
• Delivering 11% more elective surgery than the national average.
• Community medicine bills which are $7.6m above the population-based funding (PBF).
• Mental health spending which is $7.8m higher than would be expected with PBF.
• Access to care for the elderly $10m higher than the national average.
• High cost of rural hospitals, above national pricing.

Information given to Health Select Committee

- edith.schofield@odt.co.nz

 

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