Haggling over the first joint Otago and Southland district health boards' annual plan has begun, with the Ministry of Health questioning the level of deficit proposed for next year.
Otago and future Southern board chairman Errol Millar said he was unable to divulge what the projected deficit was in the first version of the plan submitted to the ministry recently.
The boards expect to end this financial year with combined deficits totalling almost $20 million.
While some savings are expected from the move to one board, these could take some time to realise.
Asked if people should brace themselves for service cuts, Mr Millar said the board was "desperately trying to get the message across that we're not cutting things".
What was likely, however, was that eligibility for some services would be tightened up.
"We're talking reconfiguration of services, rather than knocking services on the head."
The board was "desperately hoping" it could avoid service cuts.
Some services had been delivered at a level above national averages in the past, which had been wonderful for people, but board funding meant it could not afford to keep doing that.
Among the areas where the board hopes to make savings are primary health organisations, where one PHO is being established to replace nine, provision of community medicines, and community services to the elderly.
Both Otago and Southland boards have embarked on a programme of considering the future of rural hospital services and how changes may be made to ensure they are sustainable.
Mr Millar said it was hoped the efficiency of having one rather than two board service providers would also result in some savings, because it would cut out some duplication, but he did not think these would be "astronomical" and they could take some time to achieve.
He is keen to see further work done within the new board on reducing waste using "lean thinking" methods, but it was important that this was driven by people "at the coal face".
Staff would not be inclined to take notice of "edicts" from the chairman on the issue, he said.
This financial year, the Otago and Southland boards received $28.5 million in extra funding from the Government, but Health Minister Tony Ryall has warned such increases will not be matched in the Budget for the next financial year.
