The Waitaki District Council-owned company that owns and operates Oamaru Hospital has been in talks with the health board about funding and service levels for the past several months.
The company's contract with the health board stipulates what services are to be provided and service levels. The company then provides those services with the required resources, such as staffing and buildings.
Waitaki District Health Services chairman Chris Swann said the largest aspect of the negotiations was centred on funding.
He said while discussion about the amount of funding the company might receive from the health board for the coming financial year was confidential, those discussions were "well-advanced" and would be completed soon.
In the 2017-18 period, the company received $10.489million in health board funding, compared with $9.809million in the 2016-17 financial year.
He declined to say whether the company would potentially get another funding boost this year.
"Obviously the contract negotiations are around the contract in totality and in terms of funding, the largest aspect of it. But there are other things that come into it as well. It's operational things, how we work together and what resources are available to us through the DHB."
Aspects of a joint review between the company and the health board, undertaken in 2016, also form part of the negotiations.
The review recommended how best to provide sustainable health services for the district and was in the process of being implemented.
Mr Swann said the negotiation process was not affected by the review as such, but aspects of the review would play a part.
"Obviously, the implementation of the model of care, which is ongoing at the moment, and the alignment of the hospital with the SDHB community and primary care strategy is part of the negotiation ... and the funding that is required to complete those things."
