Physiotherapy services and outpatient clinics are likely to be affected as Dunstan Hospital moves to cut services in response to a funding shortfall.
Central Otago Health Services Ltd (COHSL) has just celebrated 10 years of delivering hospital services to Central Otago and chairman Russell McGeorge, of Wanaka, said health services were "not immune" to the recession.
The company receives the bulk of its funding from the Otago District Health Board (ODHB) and this year it will have a shortfall of up to $200,000.
"The amount we get has been capped and our population keeps growing and our costs keep increasing, so we have to safeguard the financial viability of our organisation, to keep on providing health services to Central Otago," Mr McGeorge said.
COHSL stepped in 10 years ago and took over running services from the hospital after the ODHB withdrew as provider.
"With huge community support, we were able to avoid the possibility of the hospital closing, so we're well aware it's critical to maintain that service for the public," he said.
The aim was to minimise the impact of the funding shortfall on Dunstan's patients and outpatients.
The hospital's general manager, Carol Horgan, said yesterday there was no suggestion of shutting down any part of the facility.
"Patients shouldn't notice any difference as a result of the funding cuts. We only have one ward and there's no way we would close that," Dr Horgan said.
The 24-bed ward was often full.
Non-clinical services were the first focus for cost-cutting.
She was confident there would be no staff redundancies but said several staff had already volunteered to reduce their hours.
Administration costs were being looked at closely.
There would be cuts in physiotherapy services, Dr Horgan said.
"Because of good fortune and good management, up until now we've been able to deliver more services than we get paid to deliver. Now though, we'll have to raise the threshold for free physiotherapy services, so the community will notice that."
Outpatient clinics would also be affected.
The cost of hosting specialists at the hospital had increased and COHSL would look at ways of possibly employing specialists directly, rather than through the ODHB, to make savings.
Rural health funding from the board was capped at $7.3 million and that figure was unlikely to change as the board was trying to reduce its own deficit.
Mr McGeorge said the area covered by Dunstan was one of the "most remote" of any hospital in the country.
"Our outpatient clinics are critical for rural people, to avoid them having to travel to Dunedin. We'll be looking at every possible angle to spin our dollars out with minimal impact on our community."
The area was also one of the fastest growing in the country.
The new Dunstan hospital was officially opened early in November 2005.
The building is owned by the ODHB but the equipment and chattels within the facility are owned by the community.
