The future of the Oamaru Hospital has been secured — bringing expected pay parity for its staff — with a funding boost of more than 30% for the company which runs the hospital.
Waitaki District Health Services (WDHS) announced yesterday a new funding contract with Te Whatu Ora Health New Zealand for the provision of health services based at Oamaru Hospital.
The new contract provides a significant funding increase of $3.5 million per annum over the previous levels of about $11 million per annum. Oamaru Hospital has 22 inpatient beds, an emergency department, radiology services, including a CT scanner and maternity services, and runs outpatient clinics.
WDHS chairwoman Helen Algar said it was a great result.
"Our new contract with Te Whatu Ora provides much needed and ongoing funding security for Oamaru Hospital. This ... gives us certainty around the continuity of health-care services for our Waitaki community," she said.
WDHS chief executive Keith Marshall praised the dedication of staff at the hospital.
"There are an amazing group of people working at Oamaru Hospital, who have continued to provide a high level of health care through many years of demanding circumstances, and everyone can be very proud of their ongoing commitment to our community. I know I am.
"The priority for WDHS is to address the significant pay gaps faced by all our staff so that we can properly ensure the future of Oamaru Hospital."
Nurses working at Oamaru Hospital receive pay rates well below those who work in public hospitals. That extends to other jobs such as orderlies, kitchen staff and cleaners.
The union had been contacted about the funding boost and had given initial support, Mr Marshall said.
Oamaru Hospital had about 160 staff working throughout the operation and there were always vacancies, he said.
"We have had staff who have really gone beyond the limit, have worked double shifts, covered others to keep everything going. They have been wonderful."
He said there was never a worst-case scenario of the hospital closing over funding but it had been running a deficit since 2015-16.
The company, which is 100% owned by the Waitaki District Council, had reported its annual result to the council yesterday and recorded a $4.7 million surplus but that was because of the Observatory Village retirement development had to be included in its accounts.
Mr Marshall said it could not differentiate between the two but the hospital had an underlying deficit of more than $3 million. There had been a full forensic review of finances in the past year, showing the situation was worse than previously understood.
Financial management had been stabilised and a detailed budget had been completed to fully understand all cost structures.
Waitaki Mayor Gary Kircher said Oamaru Hospital was an essential cornerstone of the community and that was why the council had backed it so strongly over the years.
Mr Kircher had previously threatened the council would walk away from health responsibilities if Te Whatu Ora did not come to the party.
"The new funding contract that has been secured with Te Whatu Ora is a great result for all concerned, not the least the people of Waitaki," he said.
