In a report to the board to be discussed at its meeting on Wednesday, Mr Climo said the situation was serious because the board's overall ministry performance monitoring status was at risk.
"The potential for a downgrade based on a languishing acute six-hour target has been signalled by the ministry," Mr Climo said.
A downgrade would result in in loss of revenue through funding being paid in arrears rather than in advance and through monthly instead of six-monthly payments.
It's not clear exactly how much funding the DHB could lose, but in a blog to staff and a concentrated campaign Mr Climo has called for their help.
"We don't want to lose funding or suffer reputational damage, and I ask the people who can assist in achieving the target to do so.
"If we don't hit the bullseye on this target we face serious consequences and penalties."
In an urgent memo to all staff this month as part of the six-hour target acute care campaign, Mr Climo outlined a 60-day plan to get Waikato back on track.
It included a weekly meeting of managers and clinicians to drive improved performance, weekly progress updates for staff, and a "wait-loss" discussion sheet being introduced so managers and staff can write down suggestions and tips.
The Ministry's "target champion" for shorter emergency department stays, Mike Ardagh, said the Wakato figure was disappointing.
The poor performance had prompted Minister of Health Tony Ryall to speak to board chairman Graeme Milne.
The board is about to hit the peak stage of its $430 million Waikato and Thames hospital campus upgrade, which is expected to push up costs.
At its meeting on Wednesday the board will be asked to approve a $7 million information and communication technology budget for the yet to built $130 million Meade Clinical Centre.
