Hospital may start charging to clear deficit

Hospital patients in Hawkes Bay may face part-payments for surgery and urgent medical help as the Bay District Health Board tries to slash its budget by $10 million.

The board revealed the proposals in its 2002-2003 annual plan, which has been signed off by Health Minister Annette King and released more than five months into the financial year. The plan details how the health board could break even within three years, as the Ministry of Health requires.

Without action, the board's deficit would swell to $10 million by 2005. Savings, which would be "extremely difficult", could be achieved by a combination of greater efficiency, changes to the way health services are delivered and service cuts or co-payments.

Efficiency savings, which include slashing management and administration jobs and sharing laundry services with neighbouring health boards, would total $3.2 million.

That leaves $6.8 million to be saved by service cuts and reconfigurations. Services that could be reconfigured included transport and accommodation for patients travelling to other hospitals, laboratory testing, diabetes, child health, maternity, rural health, Maori health and asthma.

Once all other savings had been made, the only remaining option was to cut services or introduce part-payments, the report said.

The board would explore co-payments for elective (non-urgent) surgery, laboratory testing, transport and accommodation, urgent medical attention and drugs.

While co-payments went against Government policy, the board believed they were preferable to service cuts.

The main proposed cuts were in elective surgery and specialist outpatient visits, but that could lead to an increase in emergency treatment or have other flow-on effects.

Health board chairman Kevin Atkinson said work had started on cutting overheads, but consultation on the proposed service cuts - delayed for five months until the plan was signed off - could now begin.

" I can't face cutting elective surgery any further, so we're going to push the ministry into allowing us to charge some kind of co-payment."

Co-payments would not apply to all surgery, and Community Services Card holders would be exempt.

In a letter to the health board, Mrs King warned about cutting spending on patient travel and accommodation, saying it had to be careful not to create inequities between Hawkes Bay and other districts.

She also said the board would need her permission before it could cut services or introduce co-payments. She later said she would not agree to such a scheme.

The district health board expects to lose $6.7 million this year. Its total budget is $192 million, growing to $204 million by 2005.

- NZPA

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