CountiesManukau DHB deficit could reach $53.5m
WELLINGTON: The embattled Counties Manukau District Health Board has revealed it is facing a projected deficit of $53.5 million for the current financial year.
That is more than double the $19.8 million deficit of the 201718 financial year.
Counties Manukau DHB chairman Vui Mark Gosche and members of the executive leadership team appeared before the health select committee at Parliament yesterday for its annual review.
Chief financial officer Margaret White said, in response to a question from National health spokesman Michael Woodhouse, the DHB’s projected deficit for the 201819 year was $53.5 million.
She also confirmed the DHB’s annual plan had not yet had formal feedback from Health Minister David Clark.
‘‘So you’re into the ninth month of the financial year and you’re working on a trajectory that’s not supported by an approved annual plan?’’ Mr Woodhouse said.
He asked whether, six months in, the deficit was tracking higher or lower than the projected figure.
‘‘We are delivering at a better rate than forecast. Our plan when we submitted was $53.5 million deficit. We are heading to a forecast position of $45 million deficit,’’ Ms White told the committee.
‘‘We’ve been working together with the Ministry [of Health], together with the Crown monitor, from the very first month of our new financial year.’’
Ms White said the majority of the costs were associated with additional capacity, particularly extra doctors and nurses.
Mr Gosche said, after the committee hearing, the DHB was working hard to get the projected deficit lower.
‘‘A lot of it is about the work that’s been going on around making the hospital more efficient.’’
Dr Clark installed Crown monitor Ken Whelan at Counties Manukau DHB in April last year following revelations about the state of the buildings across its Middlemore, Kidz First and Manukau SuperClinic sites.
In November, the Government announced an $80 million injection, in addition to earlier funding, to help fix infrastructure issues at the DHB.
The country’s 20 district health boards ended the last financial year with a combined deficit of $240 million, more than double the $119 million predicted a year earlier. — NZME