The new funding agreement reached with the Southern District Health Board should allow services at Dunstan Hospital to cope with the growing population of its area, Central Otago Health Services Ltd chairman Russell McGeorge says.
Last year Central Otago Health Services Ltd, which runs Dunstan Hospital in Clyde, compromised on a 2% funding cut from the board.
The board originally wanted a 5% cut, whereas the health company sought a 5% funding increase to cater for an increasing population in the area.
The hospital has 24 beds and covers Wanaka and Central Otago.
Mr McGeorge said it was happy with the new funding agreement reached with the board for the next year.
He declined to give specifics, but said the hospital would receive a slight increase in funding.
The deal met its requirements for "being able to maintain services'', he said.
"It was achieved very amicably.''
While it took just more than 2% in financial cuts last year, it did other things which meant the cut was more in the 5% range, he said.
"We said at the time we were able to adjust our operation so we didn't have to make a cut to services, and that has been the case.''
This year's funding would allow the hospital to meet the growing needs of the areas it served, he said.
"We're happy with the agreement we've reached, and that will cover our needs for this year.''
In June last year, the 11-member board was replaced with a team of commissioners.
They had been "out and about and talking to people'', Mr McGeorge said.
"They are working hard to provide services for the wider region.''
Last year, a series of meetings the health company held to highlight the issue, in Alexandra, Cromwell and Wanaka, attracted an attendance of about 1700.
At that time a petition opposing funding cuts for the hospital, signed by 7577 people, was presented to Minister of Health Jonathan Coleman.
Last year Maniototo Health Services Limited, which runs the Maniototo Hospital in Ranfurly, reached a settlement with the health board for a 5% cut in funding, but it negotiated a five-year contract.
