Hospitals to carry over unspent allocations?

Press, 25 November 1982, Page 15

Hospitals to carry over unspent allocations?

PA Timaru Hospital boards should be able to invest some of their underspent allocations, or carry some over to future years, says the Minister of Health, Mr Malcolm. He told the Hospital Boards’ Association of Government proposals made last month, covering that situation, according to minutes of the meeting released by the association president, Mr R. H. Kerr. Mr Malcolm said it was proposed that unpredicted under and over expenditure up to 1.5 per cent of a board’s allocation should be carried over. He said that a board should be allowed to handle that “in an entirely commercial fashion.” If it underspent I. per cent, it should retain the money and invest it. If over-expenditure happened, the board should be able to approach the same institution to obtain an overdraft.

“However, planned under or over-expenditure levels will have to have Government approval and there will be some restriction on where the money is invested,” Mr Malcolm told the board’s executive. Mr Kerr said that the measure, if introduced, would provide a great incentive for hospital boards.