Govt gives religious hospitals $120,000

Press, Volume CXV, Issue 34022, 11 December 1975, Page 18

Govt gives religious hospitals $120,000

Government grants to two Christchurch hospitals —SIOO.OOO to Calvary and 520,000 to St George’s—for the reduction of their bank overdrafts were announced by the Minister of Health (Mr McGuigan) yesterday. Spokesmen for the hospitals were not able to say last evening when the

assistance would come. They! would not disclose the size of the overdrafts, but said that the grants would sub-! [Stantially reduce them. The Minister, in announcing the grants, said that Calvary Hospital needed to "take certain extra steps to secure its future,” Cedric Mentiplay reports from Wellington. HOSPITAL FULL The bed-occupancy rate needed improvement, and fees needed to be made com-: parable with other religious hospitals. A spokesman for Calvary’ Hospital was perplexed about the advice to improve bed occupancy. "I don’t know what the Minister means,” she said. “The place is full. We could not get any more in with-j out jamming facilities. The hospital always kept some beds vacant for patients! of doctors who might need sudden admission, but these were usually its only’ vacant beds. “The hospital had increased its fees to bring them toi levels charged by other religious hospitals. This would make no difference to the bedoccupancv rate." the Matron: said. The secretary-manager of St George’s (Mr D. R. Smith)! said that the grant of $20,000) would hold the bank overdraft at a “reasonablefigure.” MINISTER’S INITIATIVE The grants were given at)' the initiative of Mr Me- , Guigan. Mr Smith said. The -, hospital had earlier made re- ( iresentations for an increase , in the benefit, so that fees-, would not have to go up. Mr . McGuigan had complied with a S 3 increase per patient per ; day for surgical and mater- ( nity wards, bringing the subside’ rate up from $9 to Sl2. This done, he still felt thatr

(religious and charitable hospitals needed further assistance. and volunteered the ! grants that he had just announced. Mr Smith said. Mr McGuigan said as he announced the grants that both hospitals showed working losses in recent years and that these had resulted in their current accounts being in overdraft. The grants would substantially reduce the overdraft in each case !and allow the hospitals to 'continue W’orking with added financial stability.