Doctors warn of risks in more health squeezing

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Senior doctors warn that signalled funding cuts to the health boards will compromise patient safety and care, and access to public hospitals.

However, the Government denies reports of looming health cuts – though it says some programmes will be "stopped, scaled or slowed" with savings shifted to front-line services.

The executive director of the Association of Salaried Medical Specialists, Ian Powell, who represents senior doctors, said a proposal by Auckland District Health Board to shave 5 to 10 per cent off its contracts was a sign public hospitals were under pressure.

While the health budget had doubled in size in a decade to $12 billion, most new money had been channelled into cheaper GP visits and building upgrades. Direct funding to hospitals had increased by only about 3 per cent a year – about half the rate of inflation.

Further cutbacks risked compromising patient access to public hospitals, the quality of care, and patient safety. "Funding cuts don't actually save money. They will end up costing more through, for example, increased chronic illnesses and emergency admissions."

Health was the big winner in this year's Budget, grabbing half of all new spending – a cash injection of $750 million. However, Health Minister Tony Ryall and Finance Minister Bill English have said funding would flatten off in the next couple of years, which equates to cuts in real terms.

Auckland DHB chairman Pat Snedden said like every board, Auckland was scrutinising all contracts, from rest home providers to clinical services. It was possible to make savings without hurting front-line services he said. He denied cuts would be anything like the $150 million reported.

"We have to stay within our means, we can't not break even."

Capital and Coast chief executive Ken Whelan said the Wellington board – which ended the year $66m in the red – was "fully aware that the years ahead will contain financial challenges for the sector". It would be premature to discuss potential implications of next year's Budget before the minister had announced it.

Hutt Valley's acting chief executive Michael Hundleby said the board was working on the basis of a gap "in the order of $10 million".

"With that in mind we have already been talking to our own clinical staff, to some GPs, to Capital and Coast DHB and to Wairarapa DHB, about coming up with clinically-led changes."

Mr Ryall said there was no firm Budget for next year. All boards would get some increase but certainly "less of an increase" than this year.

"We've said all along that district health boards have to shift money out of low quality spending and back office functions and into front-line services."

Labour health spokeswoman Ruth Dyson said a funding freeze was likely to mean no pay increases for doctors and nurses, which would exacerbate workforce crises.

- © Fairfax NZ News