Despite progress on moves to save money on community care for the elderly, the Otago District Health Board still expects to be over budget in this area by $2.3 million this financial year.
Its projected budget blowout on disability support services is now expected to be $800,000 lower by year's end, reports for tomorrow's board meeting show.
Last month's forecast was that annual expenditure would be $85.3 million in this area, but the new forecast shows it is now expected to be $84.6 million.
The board wants to cut this by a further $2.1 million next year.
The board's end-of-year forecast has improved since the beginning of the year, with the overall deficit expected to be $8.9 million compared with the earlier forecast of $10.9 million.
The original budget had a $7 million deficit.
Regional chief financial officer Robert Mackway-Jones said the improved forecast was due to initiatives within board services, including the way leave is managed - expected to save $1.5 million - and 800,000 extra savings in care for the elderly.
An allowance for transition costs to the new primary health organisation would offset some of this, he said.
