ROTORUA - Lakeland Health is predicting a $5 million deficit by the end of the financial year and attempts to convince the Ministry of Health of Lakeland's desperate need for more funding have so far been fruitless.
New Lakes District Health Board directors have called the present funding situation ""financially unsustainable" if Lakeland Health was to continue
providing all the services it currently does.
At the first public meeting of the board yesterday, which six members of the public attended, board director and chairman on the finance and audit
sub-committee Steve Ruru called the projected deficit ""unacceptable".
In a report from chief financial officer Nigel Dewar, the deficit at the end of January was $1.6 million, but that was expected to rise to $5 million by the
end of the financial year on June 30.
The projected deficit was because of "a requirement to increase current levels of service and cost pressures", Mr Dewar said.
A planned independent study of services and the necessary funding to sustain them, co-ordinated by both the Ministry of Health and Lakeland Health, has been
signed off by Minister of Health Annette King.
However, officials at the Ministry have so far refused to begin the study and board directors yesterday vented their frustration and anger at the lack of movement on the project.
The study would likely show how much Lakeland Health was underfunded and perhaps give the organisation a chance at being allocated more financial help,
Mr Ruru said.
He said it was "incredibly frustrating that this is getting bogged down with bureaucracy in Wellington".
If more funding was not forthcoming in the next fiscal envelope which would show how much money was to be allocated to the board for the next financial
year, it would limit the services Lakeland Health provided, Mr Ruru said.
The fiscal envelope was due on March 12.
- DAILY POST (ROTORUA)
Lakeland Health predicts huge deficit
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