Speculation has swirled since last month's DHB election that the Timaru chartered accountant would replace Errol Millar.
After the announcement yesterday, a spokesman for Health Minister Tony Ryall said Mr Butterfield had more than 45 years' experience as a chartered accountant, was an established company director and had led the South Canterbury District Health Board for nine years, during which time the board's finances and performance were "turned around".
Mr Ryall also announced yesterday elected member Paul Menzies, of Winton, would continue as deputy chairman.
Reappointed to the board were Tim Ward, of Invercargill, and Tahu Potiki, of Dunedin.
Dunedin's Stuart McLauchlan was reappointed Crown monitor.
A final appointment is yet to be announced.
All appointments take effect when the new board term begins on December 6.
Mr Butterfield looked forward to getting to grips with the issues and did not expect to be totally familiar with the detail until Christmas at the earliest.
"The board certainly has got problems, which is one of the reasons I've been put there to look at it ... the problems have been identified to me as a significant deficit which needs to be fixed."
He valued consensus and would not be a "dictator", nor a "receiver or liquidator".
"While my style at times has been suggested to be somewhat abrupt, I want to make damn sure I take people with me."
He hoped to turn around the board's $14.9 million deficit, ideally as a surplus the board could reinvest.
He could not be drawn on the specifics of how he planned to cut costs, but it would involve efficiencies through the May merger of the Otago and Southland boards, and would not reduce services.
Asked how he would cope with the vast geographical size of the DHB from his home in Timaru, Mr Butterfield said that was a "personal" question, but he had taken into account drive times to Invercargill and Dunedin.
He was not keen on using technological links in place of attending meetings, and said that if he could drive from Timaru to Invercargill or Dunedin for meetings, he hoped board members would be able to attend in person as well.
Mr Menzies said the new board's major challenges were regionalising clinical services, battling the deficit, and the future organisation of Wakatipu health services.
He was sad to see Mr Millar go, as he had put so much effort into his role, and he looked forward to seeing what Mr Butterfield made of the board's issues.
"It will be interesting to see what a pair of fresh eyes will have to say about the position we think we're in."
