Health boards in healthier financial state

District health boards (DHBs) are in a healthier financial condition with deficit levels better than expected by more than $73 million -- mainly due to delays in implementing programmes.

The Health Ministry's financial manager of DHBs funding and performance, John Hazeldine, said this was evidence that boards were "generally managing their financial performance well".

The total planned deficit for the financial year to June was $88.7 million while the actual deficit was $15.2 m -- a difference of $73.5m.

A one-off Government payment of $11.4m for asbestos removal during the redevelopment of Auckland City Hospital provided part of the explanation.

However, the bulk of the difference could be explained by "underspending" due to delays in putting place new programmes in several DHBs, Mr Hazeldine said.

"The delays occur while DHBs plan to ensure that new programmes are well set up; that they have recruited the required staff and the programmes are sustainable."

Some of the reduced deficit was explained by a small number of DHBs "prudently making provision" for planned major capital expenditure, or taking "a conservative position" on spending until extra funding was provided for holiday pay costs.

There was also a "carry-forward" of $7.3m of mental health funding from the previous year, which was unspent.

Mr Hazeldine said the Ministry continued to work closely with boards to reduce deficits.

- NZPA