LOWER RECEIPTS

New Zealand Herald, Volume LXXV, Issue 23178, 26 October 1938, Page 15

LOWER RECEIPTS

HOSPITAL FINANCE SIX MONTHS' DEFICIENCY SHAEP RISE IN COSTS HIGHER TRICES AND WAGES a deficiency of £3418 on maintenance operations, as compared with the estimates, for tho first six months of the financial year was outlined by the treasurer, Mr. R. F. Galbraith, to the Auckland Hospital Board last night. Ho attributed the deficiency to the failure of receipts to reach the estimated amount, and in particular to the shortage in receipts from patients' fees. The financial statements revealed that the total actual payments of t'236.16-") exceeded the estimated payments by £278, while the total actual ordinary receipts of £57,606 were less than the estimated amount by £3140. The deficiency at the same time in 1937 vas £13,266 and in 1936 it was £11.548. The deficiency was caused by the failure of receipts to reach the estimated amount, the hospital patients' fees receipts being £4600 below the estimate for the half-year, Mr. Galbraith stated. Sundry gains in other directions reduced the net shortage to £3140. The fact that payments exceeded the estimates by a net amount of £278 could be considered a satisfactorv result on a total expenditure of £236,000.

Outstanding Fees "In the ordinary way, the shortage in fees would cause no concern at this lime as experience has proved the second half of the year to be the better collection period. The position this year, however, is very uncertain," the treasurer said. It was recommended that the Government should be asked to clarify the position in respect of patients', fees outstanding on March 31, 1939. In the case of the Auckland board, these would amount to approximately £160,000. Mr. Galbraith added that,'while the actual receipts for the half-year had not reached the estimated amount, the collection of £32,397 was £2146 greater than for the same period last yaer.

Treatment Costs Expand Comparing the main payment items for the same period of six months for the last four years, Mr. Galbraith said the cost per patient treated had increased from £lO 5s 9d in 1935 to £ll 17s 7d in 1936, £l4 16s lOd in 1937 and £l6 16s 7d in 1938. The increases were due to rising prices, reduced hours and increased wages. Every endeavour had been made to economise snd many, savings had been effected. v Taking nine common contract lines, large supplies of which are purchased by the board, Mr. Galbraith showed that there had been an advance of 40 per cent in the cost this year as compared with 1935. For the six months ending September 30, salaries and ,wages amounted to £63,158, as coin pared with £29,131 in the corresponding period in 1935, an increase equivalent to 117 per. cent.

Move to Raise Fees "Last year at this time a recommendation was made that the fees should be increased from 12s to 15s a day, a Tate which even then did not cover the cost of maintenance and certainly does not to-day." Mr. Galbraith continued. "Finally, the board decided last June to increase the charges accordingly, subject to the approval of the Minister of Health. This has not yet been received." Mr. Galbraith said that at the In firmary the average cost per occupie l bed had risen to £59 12s 5d as compared with £53 5s 7d for the first six months of the previous financial year. However, there had been a further welcome reduction in outdoor relief payments, the figure dropping from £15,674 for the first half of 1937 to £12,528 for the period under review.