Formula could hit board

Press, 30 October 1981, Page 1

Formula could hit board

The Government’s- decision to postpone implementation of a controversial hospital funding formula has met a mixed reaction by the North Canterbury Hospital Board. The Minister of Health (Mr Gair) said yesterday that a population-based formula of finance for hospital boards would not be considered for implementation for at least 12 months.

The formula, based on the findings of the report, “Equitable Distribution of

Finance to Hospital Boards," would have meant an estimated $3 million cut in the allocation of Government funds to the North Canterbury Hospital Board. Although implementation of the formula had been pigeon-holed, Mr Gair said that data from the funding exercise would be used to determine how spending restraints should apply to hospital board funding in ' the 1982-83 financial year This data had indicated

that some boards, including North Canterbury, were over-funded, while others were under-funded. Those which were over-funded could expect cutbacks of up to 1 per cent next year. The chairman of the North Canterbury Hospital Board. Mr T. C. Grigg, said last evening that although he was pleased that implementation of the formula had been shelved, he was concerned that the board faced further cuts.

Mr Grigg had telephoned Mr Gair yesterday and obtained an undertaking that the size of the board’s cut for the next financial year would be subject to negotiation, and would not necessarily be as high as the 1 per cent quoted. “I am convinced that the board is not over-funded, and that after negotiations concerning next year’s allocation. 1 hope that the cut that we will suffer will not be so great that we have to drastically prune our services.”