Further cut for hospital boards

Press, 19 November 1981, Page 2

Further cut for hospital boards

PA Wellington Hospital board spending would be reduced by a further 1 per cent in ihe next financial year, said the Minister of 'Health (Mr Gair) yesterday. He said a review of hospital board financing. had shown that some boards were more generously funded than others. In that case, only those boards would have to make any reductions. Addressing the Institute of Health Administrators. Mr Gair noted that much hospital building had been carried out for more people than actually needed it. "We are starting to get over the hump, however . . . hospital capital works increased from $34 million in

1975 to a peak of $65 million in 1979-80. This year we have budgeted $57 million for hospital building projects. "From now on we should be able to concentrate less on designing new buildings, except for replacement projects.” Mr Gair said. One of the issues which the finance review had brought to the fore was the question of central reserves funds. In the past, hospital boards could have access to a number of these funds without affecting the boards' allocations. The review had recommended that these central funds be divided and distributed so that they could be administered as part of the boards’ allocations. Mr Gair said. Later, in an address to the

hospital works superintendents' conference. Mr Gair expanded on his comments about spending, on building. “Of the ■ projects programmed this year, about 77. with a total value of • $43 million, are expected to be complete over the next 12 months. A further 50 projects. valued al $69 million, are expected to start during the same period." Mr Gair said. “These figure do not include projects that are still under construction but will not be completed until after 1983. Six of these projects alone total $B7 million in today's dollar values." Mr Gair said. The total forward loan programme totalled about $575 million. Mr Gair said.