TDHB in red at start of year

Just one month into the new financial year, the Taranaki District Health Board's hospital services are already $460,000 in the red.

The July result was announced at the board's meeting in New Plymouth and comes on the heels of a $7.88 million loss the previous year.

That loss contributed to an overall deficit of $2.84m for the year to June 30 and prompted the Ministry of Health to step up its monitoring of the board.

The hospital services' July deficit was offset by surpluses elsewhere and the board ended the month with an overall deficit of $182,000.

General manager of finance and corporate services George Thomas said the overall July result was slightly better than expected but showed the hospital services arm was unable to break the previous year's trend.

"The hospital services operations deficit has a major negative influence on the consolidated financial result," he said.

"This remains a serious concern and presents a significant challenge to budgeting and financial management."

Keeping a lid on the deficit would be the top priority in the coming months, Mr Thomas said.

"The financial outlook for 2010-11 is extremely challenging, with all indications that it is expected to become even more challenging in the short and medium term."

- © Fairfax NZ News