Health board gets $7m to pay its bills

Jonathan Coleman
Jonathan Coleman
The financially stressed Southern District Health Board has been given a $7 million cash injection so it can pay its bills, Health Minister Dr Jonathan Coleman has confirmed.

Decisions on giving the board more money would not be made until a 2015-16 budget is agreed, Dr Coleman said in a statement.

''The appointment of a commissioner [to run the board] was based on the need to deal with the deteriorating financial issues, and to move the DHB to a more sustainable position over time to where we can plan for their overdue hospital rebuild,'' Dr Coleman said.

Deputy commissioner Richard Thomson said the commissioner team was working through issues to get its annual plan/yearly budget signed off by the Government.

The commissioner team needed to settle on an accurate figure for its expected shortfall, which is expected to be considerable.

However, Mr Thomson rejected a suggestion the team was under pressure to cut costs, and said there was pressure to identify an accurate figure.

''It's not so much pressure to put any particular figure in; it's pressure to get the figure right.''

Inevitably, the board would need another top up of cash at some stage, in addition to regular monthly funding.

''We're getting the support that we need to ensure that we can pay the bills.''

-eileen.goodwin@odt.co.nz

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