In a special presentation to the hospital advisory committee, patient services medical director Dick Bunton said the board was being ''bombarded'' with negative media coverage.
It faced a difficult situation, including whether it could sustain rural hospitals in neighbouring areas; the viability of 24/7 specialists in Dunedin; and the need for two acute base hospitals (Invercargill and Dunedin).
Public perception was that the board made decisions to satisfy the bottom line in a ''self-centred and slightly biased'' way.
Something ''very fundamental'' had to change, which involved working together, rather than viewpoints such as rural and urban being opposed. The theme of ''failure'' was strong in the talk.
Members were urged to consider failure's role in showing the way to success.
The ''fault'' for the board's situation was ascribed to an eminent New Zealander, the late Michael Joseph Savage, because he established cradle-to-grave welfare. Mr Bunton said the welfare system encouraged people to believe they did not need to look after themselves because the state would.
The board had effectively ''self-harmed'' for the past 15 to 20 years through cost-cutting, and needed to reach a point where it was not always in crisis management mode.
It compared well with other health boards in terms of national health targets, meaning its ''failure'' was financial rather than clinical.
When the presentation finished, chief executive Carole Heatly said she had been ''honoured'' to attend public meetings in Central Otago called in response to the rural hospital cuts.
People needed to understand service reductions in rural hospitals meant they would receive care closer to their homes. They should not become too ''hung up on the functionality of buildings'', Ms Heatly said.
Board member Richard Thomson likened the board's situation to when Cherry Farm closed. One resident had taken 18 months to adjust to the fact his most precious belongings did not need to be locked up in the office.
Mr Thomson said too much focus was placed on physical health facilities and not enough on health benefit.
