A surplus of $1.9 million is being forecast by the South Canterbury District Health Board (SCDHB) for this financial year.
That surplus, equivalent to 1 per cent of the board's revenue, was based on July and August results, chief executive Nigel Trainor said yesterday.
"There are risks to this forecast in that there are a number of expenditure lines that are demand-driven, such things as services for older people, pharmaceuticals and services provided at other hospitals."
However, he said the surplus forecast was "very good" for the SCDHB because of its large capital investment programme, which includes the hospital redevelopment and information systems.
"SCDHB is required to break even, but at the same time we must ensure that we are provisioned sufficiently for asset replacements and this surplus assists with this. The staff of SCDHB are excellent at working within their budgets and ensuring that the services delivered are of high quality, and that we live within our means."
At yesterday's DHB meeting, board member Peter Binns expressed concern at the forecast.
"It's a pretty high forecast for this stage," he said.
Mr Trainor said that when the budget was set, the board was "well aware" that it could end up with a surplus.
He said that at this stage it was "tracking okay".
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