Health Minister Tony Ryall accepts that delaying cuts to housework help to some elderly people in Otago and Southland will mean the district health boards will take longer to balance their books.
In an email statement to the Otago Daily Times yesterday, he said the safety of the older people receiving these home support services was his first concern.
"If looking after them means the DHB has to take a bit longer than planned to make their changes, then that is fine."
The Government had inherited $20 million worth of unfunded services in Otago and Southland, and that could not be "fixed overnight".
The Government had always said it would take time for the two boards to begin living within their means, he said.
Last month, Mr Ryall said he had made it "very clear" to the Otago board he expected an improvement in its financial management in the next month.
Since then, the Otago board's expected end-of-year deficit had fallen from an end-of-December forecast of $10.9 million to almost $9 million.
This figure was still about $2 million above the original budgeted deficit, and included extra savings from community support to the elderly of an estimated $800,000.
Yesterday, boards' chief executive Brian Rousseau said it was not yet known what impact delays announced this week to the introduction of the home support cuts would have on the end-of-year result.
When the controversial cuts were announced last month, it was estimated they would save the two boards a total of about $4 million over a full year.
Mr Rousseau said it was hard to give details of the financial impact without knowing how much slower the changes would be.
He was hopeful some of the board's other savings initiatives would deliver savings sooner or greater than planned to help balance the books.
Asked if Otago's much-needed capital works funding might be under threat from delays to the savings, Mr Rousseau said he hoped Mr Ryall would recognise the board's commitment to achieve the savings.
"The quantum of savings will still be achieved, but not in this financial year."
He noted that the February result for both boards was better than forecast so "this may save our bacon".
