Minister considers replacing DHB with commissioner
Friend’s adviceice pays off
Health Minister Jonathan Coleman is considering replacing the financially struggling Southern District Health Board with a commissioner.
A May 28 letter by Coleman to health board chairman Joe Butterfield says Coleman has become increasingly concerned with the district health board’s deteriorating financial performance.
Despite intervention, the district health board’s financial position has continued to worsen.
‘‘[I am] considering replacing the board and appointing a commissioner,’’ Coleman’s letter says.
The commissioner would have all the powers and functions of the district health board under the New Zealand Public Health and Disability Act, except for pro- cedural aspects which relate to board meetings.
Coleman’s letter says he is giving the district health board an opportunity to comment on his concerns and his intention to consider appointing a commissioner.
‘‘I request that you respond to me in writing with your views by June 11,’’ his letter says.
The district health board was now forecasting a deficit of about $27 million in 2014-15, much more than the budgeted position of a $14.8m deficit.
‘‘In addition and of greater concern the DHB recently submitted draft financial positions ranging between $42m and $30m in deficit for 2015-16,’’ the letter says.
Coleman, in a statement yesterday afternoon, said no decision had yet been made about the governance structure of the district health board.
‘‘I will not be
making
any decisions until I have had time to carefully consider the board’s response which is expected in the next few days.’’
‘‘I am committed to the vital redevelopment of Dunedin Hospital and the provision of high quality health services to all the people of the southern region. The problems at Southern DHB are long standing and have been well documented,’’ Coleman said.
Butterfield, in a short statement yesterday afternoon, said he had every board.
‘‘I will be working through the process with the minister of health and I will not be commenting further until I have spoken to the minister.’’
Coleman’s letter to Butterfield says financial deficits have been a feature of the district health board’s performance for some years but the situation has
confidence
in
his worsened considerably in recent months. The district health board has been on intensive monitoring by the National Health Board because of its deficit and a number of things have been done to try and drive improvement in the DHB’s performance.
These include meetings between the minister and Butterfield, chief executive Carole Heatly and appointed board members, appointment of a crown monitor to work with the board and monthly monitoring and intervention framework meetings.
But despite the interventions the board’s financial position has worsened.
Coleman’s letter says he is aware the board recently developed its strategic plan that outlined what health services should look like over the next decade and how the health system would work together to get there. However, based on the board’s previous history of failure to deliver on its annual plan expectations, he did not have confidence the current governance arrangements were suitable for overseeing the strategic plan or delivering on the changes required in the Southern District Health Board.
The board and senior managers have worked to address financial issues and most of the options available to ministers have been tried over the years, Coleman’s letter to Butterfield says.
‘‘The crown monitor has advised that the changes required to lift SDHB’s performance are significant.’’
Coleman was, therefore, considering replacing the district health board with a commissioner.