Health boards sink further into red

District health boards were $64 million in the red by last December, the latest statistics show.

Statistics New Zealand said the 21 boards' combined seasonally adjusted operating deficit for the last three months of 2002 was up $17.2 million on the September quarter deficit of $46.8 million and $9.9 million more than in the previous December quarter.

The deficit was due to increased spending and reduced revenue, Government statistician Brian Pink said yesterday.

Compared with the September 2002 quarter, total seasonally adjusted revenue fell $5.5 million or 0.5 per cent to $1014.3 million.

However, revenue increased $59.3 million or 6.2 per cent compared with the December 2001 quarter.

Government revenue decreased in the December 2002 quarter by $4.9 million or 0.5 per cent to $939.4 million.

Mr Pink said this was the first fall in Government revenue since the September 2001 quarter.

Medical charges and all other income decreased $1.2 million or 1.6 per cent to $400,000.

Total seasonally adjusted operating expenditure increased 1.1 per cent in the latest quarter, up $11.7 million compared with the previous quarter, bringing the total to $1.08 billion.

This was $69.2 million or 6.9 per cent ahead of spending during the same quarter a year earlier.

The increase in seasonally adjusted total operating expenditure was driven by a rise in employee costs of 2.2 per cent or $13.9 million to $655.5 million (it was $616.6 million the previous December quarter) and depreciation, up $1.2 million - 2.6 per cent - to $47.1 million (it was $44.4 million the previous December quarter).

Increases were partly offset by a fall in medical supply costs and other expenses, and the value of assets increased.

Total debt was made up of current liabilities ($903.2 million), long-term loans ($942.9 million), and other term liabilities ($59.3 million).

- NZPA