HOSPITAL REFORM INQUIRY

Press, Volume LXXXIX, Issue 27075, 25 June 1953, Page 10

HOSPITAL REFORM INQUIRY

Future Of Private Units BIGGER SUBSIDY URGED (New Zealand Press Association) WELLINGTON, June 24. The secretary of the New Zealand Private Hospital Association (Mr C. R. Lee) outlined the difficulties New Zealand private hospitals have faced since 1946 when he gave evidence before the Consultative Committee on Hospital Reform today. During the 1946-49 period there was no doubt that many private units went out of service. he said. This was because in many cases the Price Tribunal refused to allow the hospitals to charge higher fees. “By the end of 1949 no private hospital in the country had reserves of any kind.” he said. “Depreciation was written off, but was swallowed up in losses.” Mr Lee gave an instance of a matron getting £25 a year and keep for running a four-bed maternity hospital. “In 1949 the Private Hospital Association convinced the Minister of Health (Mr J. T. Watts) that he should form a committee to look into the position.” Mr Lee said. The committee's report said that private hospitals were without reserves, buildings were dilapidated, and they had great staff difficulties. It made three recommendations. These were that some attempt should be made to equalise the amount of social security paid to public and private hospitals, that price control should be removed at once, and that capital should be made available to hospitals that needed it for improvements and expansion. Price control was removed at the end of last year, though maternity hospitals had to renew a contract with the Health Department when they increased their charges. This had had the effect of making some hospitals put off asking for an increase. Nearly 170 hospitals had benefited from the hospital subsidy, Mr Lee said. Without it many hospitals would have ceased to exist. Public hospitals were now so good that to compete with them private hospitals would have to provide better amenities at lower cost. * ‘Even over the last few years, when increases have been allowed and subsidies paid, about one-third of the country’s private units have closed,” said Mr Lee. “They closed because they were run down to the ground before 1949 and were never able to build up reserves. We have not seen the last of the closings by any means. The subsidy has saved many hospitals, but a bigger subsidy is needed.”

FINANCING OF WORKS RAISING OF LOANS DIFFICULT EVIDENCE BY HEALTH DEPARTMENT (New Zealand Press Association) WELLINGTON, June 24. “During the last year or so, hospital boards have, in common with other large borrowers, experienced increasing difficulty in raising loan finance, and m recent months an acute gosition has arisen.” said Dr. J. A. [eade, of the Department of Health, in submissions this morning to the Consultative Committee on Hospital Reform. Dr. Meade said that in some instances boards found themselves unable to meet actual or imminent claims for loan works in progress. In other instances boards found that because of loan moneys not being issued they were unable to accept tenders received. “A survey made in March showed that a total amount of about £1,000,000 would be needed to meet actual commitments on loan works up to the end of December,” said Dr. Meade. “Some of the larger boards,are taking steps to arrange public issues, and inquiries are proceeding in an endeavour to assist those boards for whom it is impracticable to launch public issues.” MERGER NOT FAVOURED GENERAL AND MENTAL HOSPITALS (New Zealand Press Association) WELLINGTON. June 24. No particular advantage in the amalgamation of control of general hospitals and mental hospitals can be seen by the Director of the Mental Hygiene Division of the Department of Health (Dr. R. G. T. Lewis). He said this when giving his submissions this morning to the Consultative Committee on Hospital Reform. Dr. Lewis said it was important that control and management of mental hospitals should be vested in those trained in and with experience of mental hospitals work. The approach to patients suffering psychiatric disorders was different from that made to patients suffering physical disorders. Difficulties would arise with the two types of hospital under one management. Even if regional boards should have psychiatric representatives on them, the preponderance of representation would be from the general medical side, and the psychiatric hospital might “get less than its share of the cake,” he said. Dr. Lewis also said that he did not think mental hospitals could ever be controlled by elected boards.

REORGANISATION OPPOSED

PATEA BOARD’S VIEW (New Zealand Press Association) WELLINGTON, June 24. Patea Hospital Board officials, in evidence to the Consultative Committee on Hospital Reform today, said that the present method of hospital control was the most economical. The board considered that the responsibilities thrown on the secretaries of base hospitals will lead to increased salaries, without reduction of administrative costs at subsidiary hospitals. Base hospitals would also require additional clerical assistance. Increased delay would probably occur in decisions for matters referred to the Department of Health. If the regionalisation scheme wanted by the department were adopted, there would be a grave risk of deterioration in the standard of equipment and facilities already existing in smaller hospitals, said the board’s spokesman. The board particularly considered this risk applicable to its own hospital, which, though comparatively small, had always been well equipped and maintained.