Reduction in Hospital Levies

Manawatu Times, Volume LVI, Issue 7136, 20 April 1933, Page 4

Reduction in Hospital Levies

Board's Estimates For the Coming Year

25 PER CENT DROP 1 IN PAST THREE YEARS

A reduction of total lovies upon contributory local bodies, amounting to £1376 16s 8d as compared with last year, was decided on by the Palmerston North Hospital Board yesterday when it finalised its estimates for 1933-34. The maintenance levy will be £18,851 15s 3d, as compared with £17,804 last year, the increase under this head being more than offset by a substantial decrease in the capital levy. Undor the latter heading the amount to be raised is £1073 16s Bd, as against £3500 last year and £3900 in 1931, the reduction to the local bodies this year being £2426 3s 4d.

Submitting suggested estimates, which were adopted by the board after full investigation in committee, the managing secretary (Mr. A. .T. Phillipps) said: “I would first of all point out that we have again on our major expenditure item (hospital maintenance) kept within the estimate. Members will recollect that last year's estimate of hospital expenditure was £4OOO below that of tho estimate for the previous year and tho accounts now show that on this item the expenditure is £4119 7s lid below the actual expenditure in the previous year. Tho following figures show how the cost has fallen in relation to the average number of patients under treatment:—-

“In these estimates a further reduction in expenditure on this item is proposed, the amount of £27,000 being provided. If this year we can maintain approximately 200 patients for £27,000, this means our per occupied bed cost will bo £135 per annum, or about £2 12s per week per patient. Tho past year’s cost has been, (this is a, cash disbursements figure —not an actual expenditure figure) £146 per occupied bed, or in other words apart from interest, depreciation and administration charges the hospital (including tho maternity home section) is costing on an average 8s por patient per diem.

“In these estimates provision is made for tho maintenance of the Otaki Sanatorium, but no increase, in rates has been provided for on this account.

Drop in Out-Door Belief. “A 3 regards out-door relief it has been difficult to arrive at an. estimate. Our expenditure has been as follows for the past six years:—

“Itwill thus be seen that o. very substantial reduction. ha 3 been made in expenditure during the past yoar. This is only in part due to tho Unemployment Board’s schemes. It is in part duo to local relief measures and in part due to the alteration in tho method of giving relief and to the closer supervision of cases. The amount spent, £3913, includes £1236 which is expenditure attributable to unemployment, i. 0., cither as tho immediate or the primary cause. How far we are to be relieved of this expenditure is difficult to estimate. It soems certain, however, that last year’s cut in this item of estimates was too drastic and I am now suggesting an increase of £SOO on last year’s estimate.

Patients In Other Institutions. • 1 Another item which has given some concern in the preparation oi those estimates is maintenanco of pationts in other institutions. Last year’s payments totalled £3127 6s 3d. Together with the medical superintendent I have considered each sub-head of this itorn and consider the provision, £1750, now recommended should not be exceeded.

The Rocoipts Side. "As regards the re venue items, it will be noticed that the general receipts last year were over £2600 short of the estimate, the main deficit arising in patients’ fees, £1630, and subsidy on voluntary contributions, £6OO. The prosent estimate of £17,000 for patients’ fees includes Otaki sanatorium and hospital fees amounting to £7OOO.

"Among the receipts for the past year appeared tho item ’abort payment of Government subsidy, £73G .1.45.’ As against this item, this year we have to provide for a refund to the Government to adjust subsidy, £337 14s. This, of course, increases tho amount to ne found by the local bodies. "The following sets out tho Government and local body contributions for

maintenance purposes for the two years:— tiovernment. Subsidy on 1932-33 1933-34 con t t .i----butions . 1,125 226 13 6 short payment of subsidy 736 34 nil Subsidy on levies . 13,324 8 8 14,748 11 10 14,975 5 4 Less refund 337 14 0 Sub-totals 15,186 2 8 14,637 11 4 Local Bodies. Levies .. 17,804 15,851 15 3

Totals, GovL. bodies £32,990 2 S £33,489 6 7 "From this it will be seen that despite the deficit due to overspending in charitable aid and maintenanco of patients in other institutions and the shortage in patients’ fees’ revenue, we are estimating to receive from taxation local and general only £499 3s lid more for maintenance purposos than we did lost year. In this connection I would draw attention to the paragraph above which shows that an extra £SOO has* been provided for out-door relief. Against this small increaso in maintenance, on our capital estimates we are reducing demands, £4852 6s Sd. "The local bodies last year received a 9 per cent, reduction following on a 10 per cent, reduction in the year prior to that. This year a reduction in total levies of £1,376 16s Sd is proposed, or a further 64 per cent, reduction. Owing to the operation of the present subsidy system, further savings in maintenance expenditure reduce the Government contribution more rapidly than the local body contribution.’’

■ Actual Average No. Year Payments Occpd. beds 1930-31 ,. £35,103 201.6 1931-32 ... £32,245 182.3 1932-33 .. £28,126 192.6

1927-28 .. .. .. £3,508 1928-29 .. .. ... .. £4,452 1929-30 .. .. £4,186 1930-31 ... 1931-32 .. .. .. .. £5,635 1932-S3 .. . ■ .. .... £39.13