Squeeze predicted for health

Public health system managers warned last night of service cuts in the wake of a budget squeeze on their funding.

While the Government will spend $330 million more on health, most of this will barely maintain current elective surgery, mental health and public hospital services.

Far from a reduction in waiting lists, the chief executive of Auckland District Health Board, Graeme Edmond, last night warned the funding would increase his organisation's deficit and squeeze an already pressed health service.

The health vote warranted only seven lines in the 14-page Budget speech, and the Minister of Health, Annette King, was almost apologetic that more could not be spent on the area.

In total, the Government will spend $7.47 billion on health.

Mrs King said the Government would like to spend more, but it had to balance that wish against a determination to be fiscally responsible.

She said more than 185,000 acute and elective surgical procedures would be undertaken during the 2000-2001 financial year, and the budgeted funding would allow similar numbers in 2001-2002.

"The health sector has worked hard to meet the Government's commitment that all patients should have certainty of treatment within six months of assessment, or a plan of care to be managed by their general practitioner or specialist," said Mrs King.

Buried in budget documents, the Government held out the prospect of more public health spending in the future. The economic and fiscal update said its primary health care strategy aimed to reduce the cost of obtaining primary health care services.

However, it said the details of the strategy had yet to be decided.

But Mr Edmond said the new emphasis on primary and preventive health announced in the Budget would shift the focus away from hospital services.

Hospital services funding would not match increases in costs and demand, and the Auckland District Health Board deficit of $19 million would increase as a result of the Budget.

The board had received a 1.7 per cent increase for hospital-based services, but it had to cope with a 2.5 per cent population increase, and salary and wage increases of 4 per cent.

"The impact this has on hospital staff in the short-term is enormous," he said.

"As chief executive officer that causes me considerable concern because our staff are already challenged, over-worked and coping with key shortages."

The Opposition health spokesman, Roger Sowry, said the funding the Government was putting into health barely kept up with inflation.

"This is the smallest increase to health and its essential services since 1992 and makes a mockery of Helen Clark's comments that health is one of the Government's top priorities," he said.

The executive director of the Association of Salaried Medical Specialists, Mr Ian Powell, said the Budget was bad news for public hospitals.

Much of the extra funding announced was soaked up by rolling over current funding, unavoidable demand-driven services and new services, leaving "peanuts" to maintain existing services.

"Public hospitals have two choices - either they will have to reduce patient services and sacrifice the quality of patient care or they will have to increase their deficits," he said.

Mrs King said that of the $330 million announced yesterday, $46.7 million would be spent on hospital services, $23.5 million on primary care, $44.6 million on disability support services, $84.39 million on care for an ageing population and $84.4 million on elective services.

An additional $7.4 million would go on child and youth mental health, forensic services and alcohol and drug services.

She said that $12 million of the additional funds would be spent on health sector changes and district health board services.

The increase in primary care of $23.5 million would be spent on forecast growth in the cost of pharmaceuticals, laboratories, general medical services, immunisation and independent health service providers.

www.nzherald.co.nz/budget

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