Hospital braces for $1.4m loss in funding
Concerns have been raised about future cuts to healthcare in Manawatu, with Midcentral District Health Board likely to miss out on $1.4 million of funding.
Midcentral had expected to receive a funding increase of $8.6m from the Government next year. However, demographic data changes for the region means it could instead end up receiving $7.2m.
Labour health spokeswoman Annette King was concerned how Midcentral would handle the loss, given it had already made cuts to services this year.
She highlighted the DHB’S attempt to cut off 96-year-old Trixie Cottingham’s home support as an example.
‘‘They are cuts, there is no other way to describe them. [Midcentral] will be under a lot of pressure this coming year to get their deficit under control.’’
King said there was nothing wrong with having a deficit but bringing it under control could not be allowed to hurt services.
The Government was putting pressure on DHBS to live within their means, she said.
‘‘Manawatu are in for some tough cuts next year.’’
A Midcentral DHB spokesman said that they could not comment on the impact of the funding reduction until the amount had been confirmed.
Midcentral had based its budget on Ministry of Health population forecasts laid out this year.
But early indications for 2017/2018 are that those will not align due to little population growth.
Midcentral chief executive Kathryn Cook addressed the issue at this month’s DHB meeting.
‘‘Early indications that arise from our population projections would suggest that the next year’s budget will be somewhat challenging.’’
Cook did not want to comment further on the issue, but said it was something Midcentral was well aware of.
‘‘We are being cautious in our approach to next year’s budget.’’
Cook said the Government’s expectations would be that ‘‘we live within our means’’.
Midcentral was in the midst of its annual planning process, she said.
The Ministry of Health may set ‘‘transitional funding’’ which would mean the reduction might not be as much as $1.4m.
In Cook’s chief executive report, put to this month’s meeting, she said Midcentral had had the fourth lowest population growth in the country, at about 0.88 per cent. The national average was 2.28 per cent.
Heath board funding was also determined by population age.
However, the Midcentral region was expected to only have a 1.1 per cent increase in people aged 65 and over.
Ministry of Health DHB funding and planning chief adviser John Hazeldine said the total 2017/18 funding for DHBS and the final allocation for each DHB will be determined as part of the 2017 Budget.
The Ministry provided an indicative funding signal for DHBS to help them prepare their 2017/18 annual plans, Hazeldine said.