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District Health Boards face $90 million deficit

David Clark

Wellington, May 8, 2017

New Zealand’s District Health Boards are now facing a budget deficit of nearly $90 million, a significant blowout on what was forecast.

Labour believes that health funding must grow to avoid further cuts to the sector. Instead, this visionless Government seems content to allow death by a 1000 ‘service reductions’ with stretched DHB funding putting further stress on an already stretched health workforce.

Financial Strain

Add into this the fact DHBs will be responsible for $11 million of funding under the new Pharmac spending programme, and these financial strains will get worse.

The government’s own predicted budget deficit for the DHBs this financial year was $59 million. Eleven DHBs are now in a deficit hole.

Canterbury and Capital and Coast are among the worst but the smaller DHBs like Northland and Wairarapa are also struggling.

Northland says its having to spend more money with the growth in cancer treatment and the Wairarapa is facing significant cost increases due to mental health.

Underfunded DHBs

The latest Treasury report on DHBs’ financial performance believes that some DHBs are underfunding repairs and maintenance to help balance their books.

The Government is facing the consequences of a $1.7 billion financial hole that has developed over the last six years.

David Clark is Member of Parliament elected from Dunedin North and Labour Party Spokesman for Health.

Ministry of Health figures:

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