If the Otago District Health Board had not been defrauded of $16.9 million, deficits would have been reduced rather than additional services provided, board chairman Richard Thomson says.
The notion that there was a $16.9 million "chunk of work" the board had not done because of the fraud was simplistic.
Because the fraud had occurred over a number of years "it would have reduced the deficit rather than necessarily being available for additional spending".
If there was any "bright side" to the situation in which the board found itself, it was that it had received deficit support from the Government during some of the years of the ongoing fraud, and would effectively get some of that money twice if it received anything through reparation, civil action or insurance cover.
It is unclear how much the board might recover, but Mr Thomson has previously speculated it could be less than $6 million.
The board, told last week it could be over budget by about $13 million by the end of the year, is one of several facing deficits totalling more than $150 million.
Health Minister Tony Ryall gave the national estimate when he addressed board chairmen this week, saying that the prediction was up from $42 million last year.
He issued a press statement about the deficit blowouts yesterday, after which Mr Thomson was approached for comment.
Mr Ryall also said his ministry had $435 million in capital requests this year and $182 million available, a shortfall of $250 million.
This is of particular concern for Otago - Mr Thomson says it has high capital needs to upgrade existing substandard facilities.
"We increasingly will have to look at what is sustainable for us long term," Mr Thomson said.
The position the board was in was not cyclical.
"We can't say it is a bad year this year and we will sort it out next year."
Board management is trying to find ways the board could break even over the next few years.
Public consultation on future service provision is expected in the New Year
