Cheap Maori healthcare in jeopardy

A group providing cheap health care for Rotorua Maori faces an uncertain future after it misspent more than $100,000 of Government funds.

A report commissioned by the Lakes District Health Board showed Primary Health Organisation (PHO) Te Kupenga A Kahu had used $102,000 of funding earmarked for health services on operational costs.

The health board is attempting to recover the money but The Daily Post understands that unless it is repaid, the board will pull Te Kupenga A Kahu's funding.

That would signal the end of the PHO which is already reeling from the departure of one of its key providers.

Korowai Aroha, which has been providing GP and nursing services in Rotorua for the past 12 years, left the PHO last month - taking 5500 patients with it.

Its manager, Ngaire Whata, has previously criticised Te Kupenga A Kahu, saying she was unhappy about "carrying" the PHO's other two smaller health providers, Tipu Ora and Te Runanga O Ngati Pikiao.

This week, Mrs Whata said funding and management issues had prompted her to pull Korowai Aroha out of the PHO.

"I will protect this organisation any way I know how.

"My major concern is keeping Korowai safe."

The three groups formed Te Kupenga A Kahu in April last year, appointing Pihopa (Bishop) Kingi as chairman.

His son Matapihi Kingi manages Tipu Ora.

Other trustees include Hakopa Paul, who unsuccessfully ran for the health board in October. His wife, Te Orohi Paul, is the PHO's chief executive.

Like the district's other PHOs -- Health Rotorua and Lake Taupo PHO -- Te Kupenga was set up using Government money aimed at slashing the cost of doctors' visits.

The Government subsidises visits to each organisation, based on patient numbers.

Concerns about Te Kupenga A Kahu's spending were revealed in April when an audit identified the group had used $60,000 of health funding on management and administration.

In July the health board contracted Rotorua accountant John McRae as a consultant to investigate the PHO's finances, before attempting to recover the money.

His report, recently presented to the board, shows the PHO continued to use health funding on administration, misspending about $102,000.

It also criticised the PHO's leadership and described the group's financial management as "inept".

It showed the PHO could not afford to pay staff and was under threat of insolvency unless it contained its costs.

Te Kupenga A Kahu was given options for repaying the money, which included regular instalments and asking iwi for a loan.

The board initially gave Te Kupenga until December 10 to repay the money but extended the deadline so further arrangements could be made.

The board's chief executive Cathy Cooney said she hoped to resolve the issue before Christmas.

"We're waiting to hear from the board of Te Kupenga about when the money will be repaid," she said.

Pihopa Kingi declined to comment.

- DAILY POST (ROTORUA)