Health budget blasted by union
A medical union has accused the Government of ‘‘continued neglect’’ for health services, despite an extra $31 million funding boost announced for the Southern District Health Board yesterday.
Association of Salaried Medical Specialists (ASMS) executive director Ian Powell said despite the increases announced for DHBs, a preliminary analysis of the health budget figures exposed a nationwide shortfall of $300 million.
ASMS represented the interests of about 90 per cent of specialists and other senior medical and dental officers working in the public hospital system, a membership that was ‘‘very disappointed’’ at the anticipated funding gap, Powell said.
‘‘The Government’s decision not to fund public healthcare to the level needed is a serious blow for New Zealand’s communities.
‘‘This was an opportunity for the Government to respond to the significant challenges facing New Zealand’s health system, and they failed to do so. This is just a continuation of the years of underresourcing of public health, and it is very disappointing for our dedicated health workforce and their patients.’’
On Thursday, the Government announced a total budget for district health boards - including money for new initiatives - of $12.683 billion.
That entailed a funding shortfall for DHBs of about $163 million simply in order to ‘‘tread water,’’ Powell said.
Average budgetary increases for each DHB of $22 million a year over the next four years failed to address existing deficits for many health boards, including the Southern DHB.
’’The question of funding is a live issue for Southland. Everything is getting squeezed, so it becomes a question of what might DHBs focus on in terms of retrenchment,’’ Powell said.
Belt tightening was likely to occur ‘‘across the board,’’ he believed, with small, rural health centres hardest hit.
‘‘Due to economies of scale, it’s disproportionately more difficult for smaller centres to cope with the loss of a staff member. They have fewer options due to their size,’’ Powell said.
Any further funding constraints were likely to compound the difficulties already faced by southern health providers such as the Lumsden Maternity Centre, which has been fighting closure for the past several months.
Operator the Northern Southland Medical Trust - whose Southern DHB contract for running the centre must be renewed by July 31 if it is to remain open - said there was no evidence it would receive increased funding for the centre.
‘‘Until we see the detail, the situation regarding the centre remains the same,’’ trustee John Douglas said.
‘‘Bearing in mind the DHB is already working at a deficit, we don’t expect to see an increase above the one per cent that’s already been discussed.’’
That meant fresh thinking might be required.
‘‘We’re hopeful that by altering contract specifications, it might allow us to operate on a more sustainable basis. Dialogue with the SDHB is open, and it remains an ongoing process, although we’ll want to know where we’re going before June ends,’’ Douglas said.
Southern DHB chief executive Chris Fleming was sanguine about the governmental budget announcement.
‘‘We are delighted to see health as a priority in this budget and always welcome new money into the system,’’ he said.
‘‘We will be sitting down to work out the implications for us and how we can make best use of the resources for our communities.’’
However, ASMS executive director Powell said the Government continued to ‘‘short-change’’ the health of New Zealanders.
‘‘It’s disappointing the Government has chosen to short-change public health care, thereby adding to the burden of neglect on the sector. We said a few days ago that the Government faced a stark choice between stepping up and doing what was morally and fiscally responsible, and the alternative of letting even more people languish in pain as they try to access surgery and other treatment.
‘‘With Thursday’s Budget announcements, the Government has made its choice clear.’’