SDHB positive despite challenges

Commissioner Kathy Grant. Photo by Peter McIntosh
Kathy Grant
A $25.9million budget deficit was a "significant challenge" but Southern District Health Board commissioner Kathy Grant has told Parliament she believes the organisation is on sound foundations for the future.

"Perhaps progress was slower than we might have hoped for, but we continue to feel positive."

Speaking at the SDHB's annual review hearing before the health select committee, Mrs Grant - who was appointed by then health minister Jonathan Coleman in 2015 to replace the elected SDHB - asked to make some observations on her time as commissioner.

"I think that it is fair to say that the appointment of a commissioner at Southern was a welcome circuit breaker," Mrs Grant, who will be replaced by a newly-elected SDHB board after this year's local government elections, said.

"Our goal was never to take a short-term approach of cutting services and eliminating the deficit in that way.

"That could have seen some kind of financial results but really would have done nothing to improve the services in our community, or even less in terms of positioning the DHB for the future demands of our ageing population."

Mrs Grant told the meeting, held in Wellington on Wednesday the SDHB had focused achieving sustainable clinical and policy outcomes, building a stable workforce and serving the community.

"I think that we are confident about the steps we have taken in putting that framework in place.

"I think that we have achieved a stronger and more positive organisational culture upon which organisational change can be delivered."

National health spokesman Michael Woodhouse asked how confident the SDHB was that it could meet its end of year financial target of a $22.3million deficit, given its year-to-date deficit was already $25.9million.

SDHB chief executive Chris Fleming said the organisation was "very challenged" but a positive was that new cost management initiatives over the past two months had been effective.

"The last two months have been on plan. It would be irresponsible to extrapolate a December year to date figure and assume that is your forecast."

Mr Woodhouse also asked Mrs Grant if any discussions had been held about how the transition from a commissioner back to an elected health board for Southern would be achieved.

Mrs Grant said the DHB, the ministry and the minister of health were all aware of the issues raised by Mr Woodhouse.

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