Cash crisis shows health system reform flaws says MP

A budget blowout that has forced the Capital and Coast District Health Board to prepare spending cuts proves that the Government's health system is not working, says National MP Lynda Scott.

In a memo circulated to staff this week, board chief executive Margot Mains described the blowout as serious.


She said that the board was $5 million in the red after six months of its financial year.

It has an annual operating budget of $468 million.

Dr Scott said the proposed cuts proved that Labour's "ideologically driven" health system reform was leading to more bureaucracy rather than better service.

"It's the same old story.

"Officials, well-briefed in the Government's spin, publicly deny there will be cutbacks, then talk to staff privately about saving money," she said. "Big deficits inevitably lead to cuts right across the board."

Ms Mains said Health Minister Annette King had been briefed on the situation, and the board had drawn up a timetable of 17 briefings with staff and unions to discuss cuts.

She was confident no patient services would be cut to reduce costs.

An eight-page "action plan" circulated to staff outlined measures the board planned to reduce the deficit.

These included reviewing the use of casual nurses and locum doctors, increasing the level of approval required to create new positions or fill vacancies, restricting the number of people with buying authority and deferring some planned capital projects.

- NZPA