Rotorua Hospital. Photo / Felix Desmarais / LDR
"Momentous."
That's how the Lakes District Health Board chairman describes the organisation's projected $2.1 million surplus at financial year-end, the first surplus in eight years.
Reasons for the positive projection included fewer exchanges of patients with other DHBs and changes to the timing of projects. But it also came in spite of higher demand during the year.
The end of May will mark the dissolution of Lakes DHB as it becomes part of the new Health NZ.
The organisation's financial results were presented to district health board members at its monthly meeting on Friday.
It showed the year-to-date performance at the end of March was a surplus of almost $7.2 million, against a budgeted surplus of $23,000. At the same time last year, the surplus was $1.5m.
The financial year-end budget was for a $2.3m deficit, but a $2.1m surplus was projected.
In the meeting, board chairman Dr Jim Mather said it was a "momentous performance".
"This is not a primary measure of success but one of many we're expected to achieve, a very positive financial outcome."
Member Rees Tapsell asked chief financial officer Alan Mountfort how confident he was of retaining the surplus at year-end, and Mountfort said the organisation was "holding [its] breath".
He said in the final quarter of the year the budget was usually on a "downward trajectory" but that did not appear to be the case this year. A surplus was projected.
"There's still a bit of uncertainty … at this stage, it's our best guess."
Board member Lyall Thurston said the result was "extraordinary".
"It also highlights the fact that come the handover on June 30, this community is handing over two amazingly high-performing hospitals."
Board member Dr Johann Morreau said it was not just a financial but also clinically a "positive situation".
He said the organisation's culture was "positive" and this would "drive the health of the organisation in the future".
The DHB moved a motion thanking staff for their contribution to the financial result.
On Tuesday, Lakes DHB chief executive Nick Saville-Wood said 2014 was the last year the DHB achieved a surplus, but he was hesitant to pop the champagne prematurely.
"It is very important to note that we are not yet at the full year and there is a risk that we may have adjustments that could negatively impact this still to come through."
He said the year-to-date surplus was impacted by some prior year adjustments, such as a reduction in the exchange of patients to other DHBs – which has funding impacts - and timing on information systems projects.
"Having said this, we have experienced higher acute demand this year than contracted for - no additional funding is provided for this - and despite this we have managed to keep our costs in line with what was budgeted."
The DHB will be disestablished on July 1, along with all 19 other DHBs.
It will merge functions into Health NZ, which will lead the day-to-day running of the country's health system, in partnership with the Māori Health Authority.
Local Democracy Reporting is public interest journalism funded by NZ On Air
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