Public health cuts ‘options’

Press, 31 August 1989, Page 2

Public health cuts ‘options’

Some public health care services might have to be reduced if the Canterbury Area Health Board does not cut spending in all its services, says the board’s director of finance, Mr David Herman. The board yesterday released provisional spending estimates for 1989-1990, which will be presented to the Minister of Health, Ms Clark. The Government has allocated the board $301.48 million for its health services this year, including $23.2 million to service building loans, debt repayment and interest.

Mr Herman said proposals put forward by the board’s special expenditure reduction taskforce and adopted by the board would not result in immediate savings, but would help in the medium term. Improving efficiencies in all parts of the health services and shorter hospital stays would be key elements in reducing spending immediately, he said. To live within its allocation he estimated the board would have to trim budgets in its hospitals and community health services at least

7 to 8 per cent. “In the shorter term, options of delaying capital expenditure, reducing stock levels, delaying staff replacements, and closing wards and villas will need to be implemented to accommodate the $l5 to $2O million reduction required this financial year.” Mr Herman said the board would need to have in place by next June plans to cut spending 10 per cent ($3O million). That $3O million was required for the full year ending June 30, 1991.