11. Dr PAUL HUTCHISON (National—Hunua) Link to this
to the Minister of Health
What reports has he received on the financial health of district health boards?
Hon TONY RYALL (Minister of Health) Link to this
I have received several reports. I regret to advise the House that, in total, these reports reveal that the new Government has inherited district health boards that are on track to financial crisis. The outgoing Labour Government told New Zealanders that district health board deficits were expected to grow to $111 million in this financial year. One of my first actions as Minister was to personally require district health boards to provide information on their true financial situations. Their responses have revealed that district health board deficits are expected to be around $160 million this year. The Labour Government’s legacy includes 18 of 21 boards with worsening financial deficits.
Dr Paul Hutchison Link to this
What is the latest advice the Minister has received in relation to district health board deficits?
I have received fresh advice this week from the Crown Health Financing Agency. The agency expects district health board deficits to be well in excess of $200 million in 2009-10. It is a matter of very serious concern that the agency also expects seven further district health boards to be classified as at risk, meaning 14 of our 21 district health boards will be at risk according to the Crown Health Financing Agency.
Hon Ruth DysonDid the former chairperson of the Otago District Health Board show any commitment to resolving issues of that board’s deficit, as compared with, say, the chairperson of the Hawke’s Bay District Health Board, who said publicly, in relation to his board’s deficit, that its predicted $500 million savings were never real and were presented only to pacify the Minister?
The former Minister will be interested to know that the Otago District Health Board’s deficit has worsened from $9 million to $13.2 million.
The blowout in deficits to $160 million is very concerning for this year, but as serious or more serious is the crisis track in relation to resources for important capital works like new hospitals. In 2008, over $200 million in capital requests were unable to be funded, and in 2009, requests of over $400 million have already been received—a total of over $600 million in capital needs from district health boards. The Labour Government left very little provision for any of these demands.