The Southern District Health Board should not be hoarding cash that might be used to provide needed improvements to services, chairman Joe Butterfield says.
At this month's board meeting in Invercargill, he said he did not want to make a " song and dance" about the issue but he was keen to gain a greater understanding of the timing of the peak demand on cash held and how low it dipped.
He said one of the reasons he was "digging into this" was that there were some pressure points on board services, including the emergency department (ED) waiting times in Dunedin.
This would require capital expenditure not in this year's budget.
At the earlier hospitals' advisory committee meeting, a preliminary report on a special unit to better cater for ED patients was considered in the closed session.
Mr Butterfield said some of the reports in the board's closed session showed there was a gap between what "we think we can spend and what we should be spending".
Finance and funding general manager Robert Mackway-Jones said a cash buffer was needed in case the operating budget got into trouble.
It was possible it could be run a bit tighter.
The monthly financial report showed the board's cash at $16.7 million, more than $3 million ahead of budget.
One of the reasons for this was that capital expenditure was below planned levels.
Mr Mackway-Jones was asked to provide more information on the issue for next month's meeting.
The board, which has annual revenue of more than $800 million, has budgeted for an almost $15 million deficit this year, but at this stage forecasts a $10.2 million deficit at the end of the financial year in June.
In response to another question from Mr Butterfield, Mr Mackway-Jones indicated the $14 million deficit support from the Government, built into the budget and expected to be paid at the end of the year, would be lower if the deficit was lower than expected.
