Treasury has identified further savings for the cash-strapped Southern District Health Board, which is expected to make ''concrete changes'' over the next year, Health Minister Tony Ryall's letter of approval for the 2012-13 annual plan says.
Mr Ryall's letter, received by the board last month, said he and Finance Minister Bill English had signed off the SDHB's annual plan.
Mr Ryall has approved an $11 million deficit against revenue of $849.2 million.
The board is not expected to break even until 2015-16.
''Your DHB is the only board that is planning a deficit position over the three-year period, and is the reason why I have only provided approval for a single year.
''I expect concrete changes to your DHB's business over the next year to give me confidence your DHB is on track to a sustainable financial position.
''I note that the Treasury considers that stronger changes could be made to ensure your DHB can live within its means.
''I would like to reinforce the National Health Board's messages that your DHB cannot expect Crown capital funding for major capital projects until it shows that it can deliver sustained financial performance,'' Mr Ryall said.
The annual plan mentions expected savings of $38 million over three years. This appears to be an increase from the $30 million over three years the board had identified last year with the help of PricewaterhouseCoopers, for which it had paid the business services company $410,000 at last count.
The Otago Daily Times has requested a copy of the Treasury's advice under the Official Information Act.
