Health boards upset at record debt levels

District health board unaudited deficits increased to $237 million in the last financial year, compared with Government predictions of $210 million.

The Health Ministry says in its annual report to June 30, tabled in Parliament yesterday, that the figures are based on the unaudited financial statements of the 21 boards.

Twenty boards have provisionally reported deficits for the June year.

The figures have now hit the highest level since they started being collated in 1993.

Boards are unhappy with their funding levels, the report notes.

This caused long delays in providing important financial information, which was a major factor in boards' failure to meet all "key milestones" in the annual funding cycle, the report says.

"Major work is needed to ensure reconciliation of financial resources and expected service levels, and an amended financial framework also needed to be agreed with Government and DHBs."

A paper drawn up to outline a population-based funding formula was held up by the election.

It was to have been presented by June 30.

Deficit figures in the report take in a one-off $66 million writedown at Capital and Coast Health for a new hospital.

They also include a $10 million adjustment to reflect audited results for 2000-2001.

Health Minister Annette King told a parliamentary committee last month that the total deficit was expected to be about $175 million for the 2002-2003 year, a reduction of $62 million compared with the 2001-2002 figures.

She predicted that many boards would be able to handle their deficits in three years.

- NZPA