FUTURE HOSPITAL COSTS

New Zealand Herald, Volume LXXV, Issue 23129, 30 August 1938, Page 10

FUTURE HOSPITAL COSTS

How hospital costs are going to be affected by the Government's social security scheme and how they are to be met remain very obscure questions, to judge by the discussion at the Auckland Board's meeting last night. The one point on which members were almost unanimous was that costs would be much higher and that ratepayers would have to foot a larger bill. In the current year the board expects to draw 26 per cent of its revenue from patients' fees, 35 per cent from local rates, and 39 per cent from Government subsidy. Next year it will lose the receipts from fees and may have to provide more services and pay for medical attendance that is at present on an honorary basis. Against the loss of revenue and the increased costs it is promised a subsidy of 6s a bed per day from the Social Security Fund. The question is whether this subsidy vyill replace the existing one, amounting to almost 6s a bed, or whether it will be in addition. The difference is important and, indeed, crucial in the financial sense. The daily cost per bed at the Auckland Hospital is about 15s and, if the Government is to provide only 6s or 40 per cent, 60 per cent of the higher cost will fall on the local ratepayers, compared with 35 per cent at present. If, however, the Government intends to find 12s or 80 per cent, the ratepayers may find that their burdens are not increased even although hospital costs rise fairly sharply. It is indicative of the sketchy nature of the finances of the social security scheme that this point remains undefined, but the hospital boards cannot afford to allow the matter to rest and then find a few weeks hence, upon the passing of the bill, that their position has become hopelessly compromised.