Central Otago Health Services Ltd (COHSL) reached agreement last week with the Southern District Health Board (SDHB) and revealed the main contract details yesterday.
The board sought a 5% cut but the health company asked for a 5% increase, to allow for population growth.
Outpatients and ward capacity would be maintained at the current level for the next year, which was an ''absolute priority'' for the community served by the hospital, company general manager Karyn Penno said.
The deal gave the health company some time to develop a new service purchase and delivery model with the Ministry of Health and the SDHB and secure a longer-term contract.
''The whole health system is under tremendous pressure at the moment, trying to cope with rising cost of service delivery, ageing population, consumer demands, pressure to reduce costs, etc,'' COHSL chairman Russell McGeorge said.
''Dunstan, given our position - rapidly growing and ageing population, high rurality, distance from base hospital services, the `Dunstan model' with no ED [emergency department], and an unstable DHB that doesn't have the confidence of the minister - finds itself at the leading edge of these pressures.''
Conversations with the ministry about how Dunstan might become part of an integrated network across the region were already under way and a visit to the hospital by ministry officials was planned in early July.
''We will need to work hard to pull this new model together within 12 months, but I know that we can do it - we have already proven that we are innovative, resilient and committed to delivering the best care possible.''
Over the next year, capital spending would be kept to a minimum, staff training would be ... mandatory-only, grounds maintenance would be done by volunteers rather than contracted out and other efficiency measures designed by staff implemented, Ms Penno said. Clutha Health First signed a five-year contract with the SDHB last week, accepting a 3.6% ($198,000) budget cut.
