Hospital funding formula studied

Press, 14 March 1985, Page 18

Hospital funding formula studied

PA Whangarei

The Government method of funding hospital boards was being reviewed, the. Minister of health, Dr Bassett, has said. Dr Bassett is attending the New Zealand Hospital Boards’ Association conference which opened in Whangarei on Tuesday. He told the chief executives representing the 29 hospital boards in New Zealand that it was time to review the population-based funding formula which had been used for two years. The review comes on the eve of the formation of area health boards and Dr Bassett discussed the two issues which, he said, were linked with the hospital executives. Dr Bassett said a committee to review funding had set up working groups to study problems. He said the populationbased funding formula had the effect of making every hospital board a de facto area health board. Any weaknesses in primary health care would rebound financially on hospital and institutional care that hospital boards had previously seen as their first responsibility.

Boards must assist in community programmes as well as maintaining their hospital services, Dr Bassett said.