Health boards take knife to deficits for quarter

District Health Boards (DHBs) fared financially better in the September quarter, with a lower combined deficit.

Statistics New Zealand issued figures yesterday showing the combined deficit for the quarter was $5.1 million - $38 million down on the $43.1 million deficit recorded in the June quarter.

The deficit for the September quarter last year was $46.8 million.

Statistician Brian Pink said the figures were due largely to a $64.9 million increase in Health Ministry funding.

Total DHB revenue rose to $1,727,300,000, but operating costs were also up to $1,732,300,000.

The two major contributors to the increased costs were the direct provision of public hospital and health services. This accounted for $1.1 billion, while the purchase of medical services from non-Government providers and inter-DHB services cost $609.3 million.

Employee costs had risen 4.4 per cent to $670 million.

Total DHB investment in fixed assets was down on the $135.8 million spent in the June quarter, however, Mr Pink said it remained high.

For the year to September, DHBs spent $439.6 million on additions to fixed assets, up 20.6 per cent.

Opposition parties criticised the Government for not doing more to reduce the DHBs' deficits, while the Government maintained that the plan to have them all in the black was on track.

- NZPA