The Southern District Health Board is applying to carry out a programme of works to maintain the buildings until a new hospital is built.
Health Minister and Dunedin North MP David Clark is showing some urgency in his actions towards the rebuild, recently appointing his predecessor and mentor Pete Hodgson to oversee the building of the new hospital. A new hospital cannot come quickly enough. Both Labour and National signed up to a rebuild of the hospital before the election along with New Zealand First leader Winston Peters giving his support at a pre-election meeting in the city.
Whatever happens, the new hospital is some years away, possibly seven to 10. A site is close to being identified north of the Octagon but whether it is easily accessible by those involved in the planning of the new facility is yet to be confirmed.
The seriousness of the situation cannot be underestimated. According to health board chief executive Chris Fleming the spending is essential. The hospital must be kept running. Every dollar spent in the existing facility is a dollar to be regretted in the long term but the money needs to be spent.
Health funding is the most difficult area for any government to maintain. New Zealand is faced with ageing baby-boomers who require different services than they needed a decade or so ago. The health budget is huge and it needs to be monitored to ensure it is not only enough, but also that it is being well spent.
The total health budget for New Zealand is more than $16 billion and yet people keep calling for more. How can it be assured this money is well spent?
The Waikato District Health Board is now rife with allegations of overspending and a lack of oversight.
The Deputy Auditor-general Greg Schollum is to launch an investigation into the board’s procurement of HealthTap, the information technology company that powers its virtual health app SmartHealth.
The $15 million purchase of services from the American-based company was largely driven by former DHB chief Dr Nigel Murray and former board chairman Bob Simcock, who both resigned following an investigation into Dr Murray’s irregular expenses, which totalled $218,000 over three years.
The former Otago board was not immune from scandal. Michael Swann, the board’s former chief information officer, and Kerry Harford, a Queenstown surveyor, were found guilty of defrauding the Otago District Health Board of nearly $17 million.
In Dunedin, an upgrade of the emergency department is a priority and an extra operating theatre may be built, although the detail has not yet been worked out.
Dunedin Hospital is not keeping up with its surgery demands and Mr Fleming wants to avoid straight outsourcing where possible. He prefers to find other places for some services but relocate DHB staff to provide them.
The Southern board is not alone in wanting and needing more funding and the health industry continues to call for more. But the money supply is not bottomless. Taxpayers and government borrowings fund this country’s services and, at some stage, enough will be enough.
It is possible the Government will tell the Southern board to fund all or part of the work itself from existing budgets, an almost impossible task without the severe curtailing of services.
Labour accused National of underfunding health and on the surface, that appears true. National did not cut health funding, but it did not put in as much as other political parties and lobbyists demanded.
As 2017 ends and Dr Clark, also an Associate Finance Minister, consults with Finance Minister Grant Robertson about the demands of health, it is hoped the two men with strong Dunedin connections can understand the need for the urgent top-up of funds for the Southern board.
The $100 million is a significant sum, but it is essential funding for a hospital under pressure.
