Bay of Plenty District Health Board will focus on saving money through better purchasing power after rejecting elective surgery cuts.
The board is facing a $10 million funding shortfall.
Chief executive Ron Dunham said today the board agreed with management's recommendation to reject all options except efforts to improve purchasing power by combining with four other central North Island boards - Waikato, Rotorua, Taranaki and Gisborne.
Mr Dunham, in Hamilton today to meet the other boards' chief executives, said a "significant reduction" in the predicted deficit was likely with joint savings in areas such as supplies, pharmaceuticals, information technology and electricity.
If there was a shortfall, the rejected options could be revised and included in the board's business plan due by August.
However any cuts would require Health Minister Annette King's approval, he said.
Bay of Plenty MP Tony Ryall yesterday released Mr Dunham's report to the board.
Other rejected options included downgrading specialist services, reducing rural services, downgrading Whakatane Hospital, freezing wages, and exiting some services including gynaecology and emergency medicine.
Mrs King said boards had been asked to identify efficiency initiatives and possible service re-configuration for the 2001/02 year.
She said the level of elective surgery in Bay of Plenty would remain constant because funding for it had remained the same.
While Bay of Plenty District Health Board gained $2 million more in the recent budget for the year from July 1, bringing its annual funding to $137 million, it effectively faced a reduction in funding of $10 million because of increased demand and inflation.
But Mr Dunham said population-based funding would begin in July 2002, which should reflect the Bay of Plenty's population growth.
- BAY OF PLENTY TIMES
Elective surgery cuts not on agenda: BOP Health
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