Owning hospital works well

Clutha Health First  in October 2012. Photo by ODT.
Clutha Health First in October 2012. Photo by ODT.
Ray Anton.
Ray Anton.

The possibility of the Queenstown Lakes Community being asked to take over ownership of health facilities at the Lakes District Hospital, might surprise locals, but it is common in the province. The Southern District Health Board cannot upgrade the Frankton facility and fund a $100 million Dunedin regional hospital rebuild, and was looking at options such as trust ownership. There are various ownership options of health facilities in Otago.

Having the community take responsibility for its health services has worked in South Otago,

Clutha Health First chief executive Ray Anton says.

The Balclutha not-for-profit community-owned company operates a 15-bed acute medical ward, a primary maternity unit, outpatient clinics, community services and hosts a visiting surgery bus providing surgery services.

It is also the largest provider of general practitioner services in the Clutha district, serving nearly 8000 people.

The Southern District Health Board has told Lakes District Health staff in Queenstown it cannot afford to upgrade the Frankton Hospital, raising the possibility a trust could be formed to run the facility and manage health services.

Mr Anton said people might perceive the announcement this week as the DHB foregoing its responsibility, but the experience in Clutha offered another take.

''I can imagine how that could be seen: `The Government is responsible for health services, so why should a community absolve the Government of its responsibility?', he said.

''You can take that approach to it, or you can say: `Actually, we probably can do it better than you.' ''And there are examples of many organisations in the South that have done it much better than them.

''We can change tack quicker, we can make decisions - from the time the decision was made that we should buy a GP practice to the time we bought it was months instead of years.''

After much community unrest in the mid-1990s when the Balclutha hospital closed, a $4.6 million rural hospital opened in 1998, owned by Clutha Health Inc, the trust that runs Clutha Health First.

With a $2.6 million government loan (now paid off) and a commercial loan of $2.1 million, services returned to the area.

A $2.6 million refurbishment to the building - largely covered by the trust's accumulated reserves - to accommodate six GPs was completed in May 2013.

''We've been able to do that because we're unshackled by the politics of health that don't allow you to do those kinds of innovative things,'' Mr Anton said. ''There are all kinds of reasons why the health system doesn't let you take risks, make the right decisions for your local community.

''I don't have to answer to the minister of health,'' he said.

A 10-person board runs Clutha Health Inc, with five elected by the community every three years, three employees of Clutha Health First, appointed by the chief executive every three years, one is appointed by the Clutha District Council and one is appointed by the local iwi.

The trust appoints a seven-member skill-based board to run the company - Clutha Health First.

''When somebody says it doesn't work, I say `bull...','' Mr Anton said.

''It works really well - communities have a lot more at stake to see that their health services work for them, we benefit from donations from the community, support from the community. There's a much more coherent system when a community owns and supports its practice.''

 

WAITAKI DISTRICT

A community-owned company provides health services in the Waitaki district and operates Oamaru Hospital under contract to the Southern District Health Board.

All shares in the company are held by the Waitaki District Council and surpluses are returned to the community by way of extra health services or provided to the Waitaki Health Services Charitable Trust which now has assets of more than $5 million.

The trust assists the company - for example it purchased a CT scanner which is leased to Oamaru Hospital.

Part of company's role is to investigate and provide for future health needs in the district - at present it is preparing a business case for the proposed Observatory retirement village complex on a 7.9ha site on Hospital Hill in Oamaru, built over three stages and at an initial estimate of more than $21 million.

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