It was revealed during discussions at this week’s council meeting that Oamaru Hospital had run a deficit of more than $3 million over the past year.
Waitaki District Health Services Ltd chief executive Keith Marshall confirmed that the accounts had not yet been audited this year but that no substantive change would occur after they were examined by the Office of the Auditor-general.
Mr Marshall is set to hold talks before Christmas with Te Whata Ora about the funding levels of Waitaki District Health Services Ltd.
The health services trust is in a unique position in New Zealand as it is a council-owned organisation with the responsibility of providing health services to the benefit of ratepayers in North Otago.
With concerns rising that Te Whata Ora will not provide adequate funding to maintain the level of services promised, Mr Kircher said continued local ownership of the hospital would not be feasible.
But he did not think that would happen.
"It would be a brave government that would allow it to not keep on going.
"The question is whether they fund it in its present form or whether they take it back, because essentially that’s the point where we are at.
"They need to pay the proper amount for the service that’s actually being delivered or they need to look after it themselves."
Mr Kircher said if they did run it themselves, he did not think they would run it any more efficiently than the Waitaki Health Services Ltd, but they needed to put in more money to actually deliver the health services needed.
Mr Marshall told councillors that staff had been pulling double shifts just to provide cover at Oamaru Hospital and its community services.
However, Mr Marshall said negotiations with Te Whatu Ora were going well, but his team needed to conclude funding discussions with the Crown in time to report back to the council in February.
National MP for Waitaki, Jacqui Dean said the hospital service provided a level of health services that would not be covered if the district relied on Dunedin Hospital to provide them.
"This funding issue is not just about the hospital but right across the community and places people in a very vulnerable position."
She said it was a very serious matter.
She was hoping that Te Whatu Ora would supply the level of funding required.
"I thought this was what the health reforms were all about but it’s starting to look like we’ve been sold a lemon," Mrs Dean said.
Te Whatu Ora was contacted yesterday but was unable to respond before deadline.
