$209m deficit forecast for DHBs this year

Nurses’ deal may add $16m

WELLINGTON: Health officials are warning district health board deficits could hit $225 million if nurses accept a proposed deal.

The latest monthly financial update for the 20 DHBs, published by the Health Ministry online yesterday, reveals they expect to have a total combined deficit of $189 million this financial year.

For the eight months until February, they had a combined deficit of $73 million — $27 million worse than expected.

The forecast financial yearend deficit was listed at $189 million.

The ministry said it believed the deficit would increase to approximately $209 million by June 30.

However, it went further: ‘‘In addition, the new nurses Meca [multiemployer employment agreement] settlement proposal could, if accepted, also impact on DHBs’ financial results with an additional $16 million proposed be incurred in 201718.

‘‘Therefore, we have increased our forecast for 201718 to a sector deficit of $225 million.’’

Nurses rejected the second proposed pay deal from their DHB employers on March 26 and are now considering whether an independent panel could resolve a pay impasse.

All but three DHBs did worse than they budgeted for in the eight months to February.

They were: Southern $4.9 million worse than budget; Tairawhiti $3.7 million; Bay of Plenty $3.2 million; Taranaki $3.2 million; Canterbury $2.7 million; Waikato $2.2 million; MidCentral $2 million; Hawke’s Bay $1.6 million; Hutt Valley $1.4 million; Nelson Marlborough $1.2 million; Wairarapa $1 million; Auckland $596,000; Waitemata $556,000; Northland $552,000; Whanganui $$520,000; West Coast $93,000; and Lakes $43,000.

The ministry said the deficit forecast was largely consistent with information provided to Treasury as part of the Budget Economic Fiscal Update, or BEFU process.

Wellington’s Capital and Coast DHB performed better than it budgeted for last month, to the tune of $1.9 million; Counties $454,000; and South Canterbury $354,000.

The update said average fulltime DHB staff numbers were 421 below budget.

Of interest amid concern about delayed maintenance and substandard hospital buildings is capital expenditure at $225 million in the year to February — $140 million below budget.

Fourteen DHBs had annual plans for the 201718 year approved by the end of February.

Still unapproved were Canterbury; Capital and Coast, Counties Manukau; Southern, Tairawhiti and Waikato.