Holding out means 10% snip for hospital

Other rural hospitals accepted the health board funding cut last year but Oamaru held out, meaning it has to take a 10% cut when its three-year contract ends, Clutha Health First (CHF) chief executive Ray Anton says.

"What's happened in Oamaru is they're trying to do a catch-up.''

Mr Anton said CHF accepted the 5% cut but it ended up totalling only 3.6%.

This was because the hospital relinquished a needs-assessment service because of the funding cut, and the board took it back in-house and then paid CHF to provide that service.

"And they bought it back from us for the same amount ... but the funding was centralised.''

Mr Anton said CHF was fortunate to be "diversified'' through its general-practice service, partly insulating it from the health board's difficulties.

The GP service provides 40% of its income.

The funding cut had made life harder financially for the hospital but it sympathised with the board's financial plight, Mr Anton said.

Central Otago Health Services Ltd (COHSL) runs Dunstan Hospital and chairman Russell McGeorge said it was about to enter into talks with the board about funding for the 2016-17 year.

"Based on a letter we received at the end of last year from the commissioners, I'm not anticipating us facing cuts in funding,'' he said.

COHSL agreed to a 2% funding cut for the 2015-16 year rather than the 5% sought by the district health board.

At the time the contract was settled in June, COHSL said a funding contract for 2016-17 would include the health board making an annual contribution to inflationary pressures and recognising Dunstan's population growth.

Maniototo Health Services Ltd general manager Geoff Foster said he was confident the Maniototo health company would not face another funding cut for the coming financial year.

It reached a settlement with the health board last year agreeing to a 5% cut in funding that year but it negotiated a five-year contract.

The funding for Maniototo Health, which runs the Maniototo Hospital and Chalet Rest Home, would be inflation-adjusted and would not decrease, Mr Foster said.

Add a Comment