Southern health board urged to do better

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The Southern District Health Board has good management and financial information control, but needs to do better at explaining and measuring what it does, Auditor-general Lyn Provost's annual audit report shows.

It is not alone. No boards scored well for their provision of service performance information and associated systems and controls last financial year.

Southern was one of eight boards rated as poor in that regard in the report presented to Parliament yesterday. In the South Island, the West Coast board was also in this category, while the other three boards joined nine others classed as needing improvement.

The report said most boards were still not good at explaining the services they deliver, although there had been some improvement.

Most were reporting more "though not necessarily better" performance information. Many did not have main measures of outcomes.

For many, there was also inadequate performance information about all significant services, with concern about the failure to describe outputs concisely, but with enough detail.

"There is a lack of comparative performance information, especially trends," the report says.

While many boards, including Southern, have a good rating for their management and financial information systems and control, the report expresses disappointment that results in this area have not altered much during the last four years.

Most state-owned enterprises and other crown entities have achieved the top rating of " very good" in that time, while no health boards are in that category.

As expected, the report shows Southern had the second- highest deficit in the country last year at $14.8 million, topped only by Capital and Coast on $47.5 million. However, when the deficit as a percentage of revenue was considered, Southern's 1.8% result was fifth-highest, equal with Mid Central district health board.

The West Coast's $7.7 million deficit was the highest in this regard, showing as 6.1% of its revenue, followed by Capital and Coast on 5.6%.

Six boards recorded surpluses for the year, with South Canterbury ($400,000) the only South Island board to do so.

The total deficit for all boards was $102.1 million. But while the overall deficit figure was more than $50 million lower than the previous year, the number of boards in deficit had increased by one to 14.

This year the total deficit is expected to reduce to $76.5 million, next year to $39.9 million and the following year to $17 million.

Southern is one of four boards receiving intensive monitoring because of its financial performance, and one of three with a crown monitor.

- elspeth.mclean@odt.co.nz

 

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