Board’s allowance cut by error

Press, 28 May 1981, Page 4

Board’s allowance cut by error

? A Health Department accounting error means that the North Canterbury Hospital Board has less money to spend this year than it thought.

Less than two hours after the board’s estimates for the financial year and its annual report were published, the department notified board staff that it had “over-allo-cated" $370,201 to the board.

The board’s treasurer, Mr F. R. Harrison, told the annual meeting yesterday that the mistake would affect all hospital boards.

■ The estimates would have to be adjusted to compensate for the lower allocation, but the cuts would be spread as .evenly as possible, said Mr Harrison.

i The total allocation for the board is $l3O million, an i increase of $lO million on spending last year.

r Mr ’ Harrison said in his report that the board was facing an effective cut of 0.75 per cent in its allocation this year. For each of the previous two years the reduction was 0.5 per cent.

The board's chairman, Mr T. C. Grigg, said that there had been a trend during the last two years for increasing patient numbers while staff levels remained the same.

Actual board spending had increased by $2O million from March, 1980. to March, 1981.

■'A total of $14.5 million of the increase was in direct payments for wages and salaries but we have not employed one extra pair of hands," he said.

"In spite of the huge increase (since March; 1980) in real terms there has been a 1 per cent cut and this year

the board has to budget for a 0.75 per cent cut," Mr Grigg said. There was much more that could be done in the health field to improve the lives of people in the board’s area and the Government should be asked to give health services their “fair share” of .funds, he said. But Mr Grigg thought that in spite of cuts in allocations New Zealand health services had been “treated reasonably well" compared with some other countries.

The chairman of the finance committee, Mr D. H. Lawrence, said that he did not think it was the board’s

job continually to ask the Government for more money. It was frustrating and 'time-wasting for an already overworked staff. The board must see that an equitable distribution of funds for health services was established. There was a “depth of good will” in the board’s area which could be tapped and there were people whose services would be available without pay. Mr H. A. Clark disagreed with Mr Lawrence and said that he would “fight” against any proposal that would replace paid staff with voluntary labour while Christchurch had a serious

unemployment problem. The board’s chief executive, Mr R. I. Parker, said that although the board overspent by $71,000 last financial • year this represented only five hours of the board’s operation. Patients were no longer able to choose the best treatment at a time they wanted, said the board’s medical superintendent, Dr R. A. Fairgray, in his renort.

$ i Because ■ demands ex- ; '' ceeded resources within the health services, increased ; pressures had been put on staff at all levels. “Some patients, especially those with non-urgent, minor medical conditions, feel annoyed that treatment cannot be gained immediately,” he said. “Staff often feel frustrated

in being denied unlimited financial resources. Executive officers, and elected board members, are put under mounting strain as

they seek to determine priorities based on real medical need rather than on social or political pressures.”

Dr'.Fairgray said that in some parts of New Zealand wards or departments had bipen closed to ration health services. No service has been stopped in the board’s area, and savings were .-made by reminding staff of the need tq conserve time and -funds sb that as many patients as possible could be treated with the available resources The chief nursing officer, Miss B. C. Brankin, said in her report that she was concerned about the shortage of tutors in the School of Nursing, and the lack of interest in suitably qualified nurses in applying for administrative positions.

One reason for the situation was that nurses could lose money by being promoted, she said. By accepting an administrative position, with extra responsibility and regular hours, nurses lost the financial benefits of working unattractive hours and weekends. Most nurses conscientiously accepted shift duties as a way of life when they started training, she said.