Cash crisis threatens hospital services

Press, 18 December 1976, Page 22

Cash crisis threatens hospital services

The North Canterbury Hospital Board could reduce its! spending only by curtailing some of its services and stopping the admission of some patients to hospital, according to the board’s finance committee. Committee members have been told by the treasurer (Mr F. R. Harrison) that, for the first eight months of its financial year, the board had overspent its maintenance account by about $588,000. At the corresponding time last month overspending was about $340;000. The medical superintendent in chief (Dr L. McH. Berry), said the only way to reduce; spending would be to curtail! services such as the making! and applying of artificial; limbs. Stopping intravenous! drips or blood transfusions! would reduce costs, but was; just “not on,’’ said Dr Berry, j The board had managed last year, but staff had faced! hardships, and although these! had been borne, they had been unrealistic. The growth! allowance to the board was)

inadequate to provide ser- ; vices, he said. To provide services, the board had to have money. It could not do so on what it received, which was less than any surrounding hospital board, said Dr Berry. Professor D. W. Beaven said that on a per capita (basis the board was not get- ; ting its fair share of the cake. If the board had to curtail services it would be because .it did not have an adequate (share of the money to maintain them, he said. Staff had had a difficult task over the last few months making finance (■spread out, said Mrs L. C. Gardiner, and they had done ! their best. They could not go lon any longer and the effect, ■could be disastrous on staff (and patients, she said I Mr Harrison said it was surprising that there could be (a. $240,000 increase in just one month. It could not be • sustained indefinitely. Most of the extra money was spent on medical salaries, mainly for junior mediical officers receiving such

-payments as holiday pay; I supplies and expenses and c: administrative services: and ■ the generation of steam inti eluding the cost of coal; s' domicilliary services; trans--1 port of patients; and stock increases in the supply den' partment. a The areas where the great--jest problems lay -were prac- !. tically impossible to control. !1 said die board chairman (Mr e T. C. Grigg). In the salaries e and wages area, the board - was under its budget so was (acting responsibly in the t areas it could control. v Mr D. H. Lawrence said it e was important the board do !. everything possible not to e overspend. It should be 5 made known the board was t concerned, he said. fl Last month a 42-page sub- [ mission from the board, asks ing the Health Department sjfor a S3M incr_u.se in its alti location, was presented to e[the National Allocations Adivisory Committee. A subfl committee from the board -i will meet Health Department - officers on Monday, for more i (discussions on the claim.