Hospital arm of SDHB overspends by $157,000

GWYNETH HYNDMAN
Last updated 05:00 06/09/2012

Relevant offers

The Southern District Health Board's hospital arm is $157,000 over budget at the start of the financial year, a health board committee was told yesterday.

Health board chairman Joe Butterfield asked, at yesterday's Hospital Advisory Committee meeting, if the money was already "down the tube" in the first month of the new financial year.

The result comes after a disastrous close to the previous financial year. The result, still being audited, is predicted to be a $12.7 million deficit. That result takes in the board's funding and provider arms.

The board is expected to discuss the July financial report for both arms this morning.

The report shows overall, both arms are favourable for the month by $500,000.

In the latest report prepared by senior business analyst Grant Paris, the provider arm's $157,000 unfavourable variance was attributed to personnel, outsourced medical costs to cover vacancies, clinical supplies and infrastructure.

It was unclear how much of this figure was the timing of how certain costs - such as staff taking annual leave - had hit the July budget.

Mr Butterfield's main question - "will it be recouped" - was difficult for Mr Paris and manager of funding and finance Robert Mackway-Jones to answer.

"Some of it is permanent; some of it is timing," Mr Paris said.

Mr Butterfield said he was struggling to understand what the unfavourable balance indicated for the coming year.

Committee member Richard Thomson said the board faced a similar situation last year.

Mr Thomson asked for further data that would keep the board "clued in so better questions of staff could be asked" and if the board should "challenge harder, earlier" when finances are troubling.

Ad Feedback

- The Southland Times

Comments

Special offers
Opinion poll

Should April Miller be allowed to play in the presidents grade rugby competition?

Yes, if she can keep up with the other players, why not?

No, it's against the rules and it's not safe for her

Vote Result

Related story: Southland woman banned from men's rugby side

Featured Promotions

Sponsored Content

Social Media
The Southland Times on Facebook

Subscribe to a digital replica of The Southland Times.

Digital edition

Subscribe to a digital replica of The Southland Times.

Click here to read our free community newspapers from around the region.

Community newspapers

Click here to read our free community newspapers from around the region online.

Southland Times subscriber news and information.

Subscriber services

Southland Times subscriber news and information.

Click here for information about advertising with The Southland Times.

Advertise

Click here for information about advertising with The Southland Times.