Northland DHB expects to end year with surplus

At the Northland District Health Board (NDHB) meeting last week chief financial officer Meng Cheong said there was chance of a surplus, thought to be about $150,000, at the end of the financial year.

The chief number cruncher at the Northland health board has been praised for delivering a small surplus despite a busy and challenging year.

At the Northland District Health Board (NDHB) meeting last week chief financial officer Meng Cheong said there was chance of a surplus, thought to be about $150,000, at the end of the financial year. The surplus would not be confirmed until after the annual audit.

"Needless to say it has been a very challenging year clinically for Northland District Health Board," Mr Cheong said. "A challenging clinical year leads to challenging financial outcomes."

The latest figures showed NDHB had budgeted for 24,697 case weights for the 11 months to May, but in reality had 26,144 - or 5.9 per cent extra.

Case weights reflect the relative complexity of the treatment. For example, cataract operations will receive a case weight of approximately 0.5, while a hip replacement will receive 4 case weights.

Board member Greg Gent told Mr Cheong it was impressive there was a surplus. "You landed a jumbo jet on a pin with that one," Mr Gent said.

Board chair Tony Norman said: "I think we should all as a board congratulate the management team for delivering that result in these circumstances."

The biggest increase was in the number of acute cases, people who injure themselves or come down with an unexpected illness. NDHB had budgeted for 18,004 acute cases in the year to May, but in reality had 19,298 - or 7.2 per cent extra. The number of elective cases was also slightly higher than the 6693 budgeted for, with 6846 in reality - a 2.3 per cent increase.

Those figures from May were the latest available and did not account for the last month of the financial year.

In his report Mr Cheong said activity levels reflected a busy winter in 2014, plus a requirement to perform elective surgeries faster. The start of 2015 was also busy with the emergency department at Whangarei Hospital recording its busiest ever day on January 2, with 150 people admitted.

Mr Cheong said "significant" cost-saving initiatives were put in place over the past year, such as a reduction in the vehicle fleet, retendering of the security services and cheaper utilities.

The surplus was also attributed to an extra $2.1 million from the Ministry of Health to help with the elective surgeries.