HOSPITAL RATING

Poverty Bay Herald, Volume LXVI, Issue 19887, 15 March 1939, Page 6

HOSPITAL RATING

REASONS FOR INCREASE

SOCIAL SECURITY EFFECT

EXPLANATION BY BOARD

COUNTY DISCUSSION Graphs showing reasons for the increase in the Cook Hospital Board's rates levied on contributing authorities were received by the Cook County Council at the monthly meeting today. the graphs being in reply to a resolution dealing with rating forwarded to the board following a recent meeting of the council. The board intimated that the resolution of the council dealing with the difficulty in collecting rates had been fully discussed by the board. To give a comprehensive survey of the causes bringing about increases in cash requirements for hospital purposes, the board forwarded coloured graphs. The first of these showed the total amounts levied on local authorities in each year since 1926-27 for maintenance purposes only and also the Government subsidies received in respect of these levies.

Increase in Expenditure

The second graph showed the total demands on separate local contributing authorities, including capital expenditure. On this graph were enumerated items of expenditure which had given rise to increased cash requirements in recent years, these being summarised as follows: — The taking over of the St. Helen’s Home, resulting in the need for a new home and an annual maintenance cost at present day figures of approximately £2500; Principal and interest repayments on loans raised in connection with earthquake reconstruction and new buildings in recent years; The cost of sales tax and exchange; Heavy increases in wages and salaries resulting from the operation of industrial awards and the introduction of a 40-hour week for employees; General increases in the cost 01 all hospital supplies. The board pointed out that, while sharing with the council and all contributing bodies and ratepayers concern at the necessity for increased expenditure, it wished to assure the council that the fullest consideration was being given to all expenditure necessary in the conduct of the various institutions and services which were an obligation on the board to maintain. Cr. S. T. Gray, a member of the Cook Hospital Board, pointed out that the larger demand made by the board this year was unavoidable, due to circumstances beyond its control. Social Security Effect “We do not know how the Social Security Act is going to affect hospitals,” added Cr. Gray. “The Government has said that it will offer 6s per bed oer day as compensation. This is in excess of the present cost per bed, but the increase, which amounts to about 2s per bed, will be more than counter-balanced by increased hospital costs. “Do not blame the board for the position, blame the system of hospital board finance,” declared Cr. Gray, adding that a movement was in train to deal with this question. The councillor pointed out that the Government had suggested that if there was no local financing of Hospitals there would be no local control. Buildings Necessary

Answering the chairman, Cr. W. G. Sherratt, Cr. Gray said that interest on hospital building loans was paid out of the levies made on the contributing bodies. The building work being carried out at present was an absolute necessity, Cr. Gray pointing out that in the event of nurses working on a 40-hour week the new nurses’ home would not be able to adequately meet demands for accommodation and the position would be much the same as before a new nurses’ home was built. Cr. M. T. B. Hall quoted extracts from a report of the Municipal Association’s conference dealing with a conference between representatives of the Hospital Boards’ Association. County Councils’ Association and the Municipal Association on hospital matters, pointing out that the conference of these bodies was unanimous in its opinion that the basis of the levy on contributing' bodies should be an ability to pay, in other words, on salary and wages. A deputation representing these three bodies was to wait on the Minister of Health, the Hon. P. Fraser, this week in an effort to have a basis along these lines established. The letter was received, Cr. Gray being thanked for his services to the county on the board.