HOSPITAL FINANCE

Southland Times, Issue 19347, 12 September 1924, Page 6

HOSPITAL FINANCE

BORROWING REDUCED. THIS YEAR’S DEPARTMENTAL ESTIMATES. (Our Parliamentary Reporter.) WELLINGTON, September 11. A reduction of the borrowing handicap to the system and an acknowledgment that there is an improvement in the financing of Hospitals by District Boards, is made in the annual report of the Department of Health, tabled in the House of Representatives yesterday. In regard to the subsidy paid to Hospital Boards under the permanent appropriations, says the report, the amount of subsidies paid during the year was £407,447, or £12,553 less than that estimated and appropriated, but the amount of subsidies outstanding at the close of the year was £5OOO mere than estimated. The expenditure on account of subsidies was £21,997 less than the previous year, which in turn was £42,267 less than the year preceding. The amount required for the current year will probably show an increase of about £120,000, some £60,000 of which will be due to the new maintenance subsidy rates, and some £32,000 will be represented Jay increased capital expenditure, many Boards showing a laudable desire to finance their capital undertakings by means of a levy and subsidy instead of by lengthy leans. The increase in the maintenance subsidy rates permit them to do this without any great increase in their rate of levy, but it naturally results in an increase in the subsidy during the year. Much of the remainder of the estimated increase is due to the amount of levy and subsidy that has to be raised to meet the heavy interest on loans, which during the preceding few years showed a tendency to increase to an alarming extent, but has now reverted to more normal proportions. Plans approved or prepared by the Department during the year, involving new buildings or additions to existing buildings, are as follows:

In addition, the purchase of land in six instances, amounting in all to £15,625, was approved. The difficulty in securing the amalgamation of Hospital Districts is the only serie us drawback and is a handicap to a Hospital system which has been the subject of favourable comment the world over, and has been, or is being, adopted in other parts of the Empire.

Estimated No. Cost. Buildings. No. Ccst. New General Hospitals .. 3 £118,275 Additions to Hospitals 10 118,336 Maternity Hospitals .. .. Infectious Diseases’ Hos7 330,370 pitals 1 1,600 Tuberculosis Sanatoriums.. 2 25,418 Old People’s Homes .. .. 4 9,100 Nurses’ Homes 6 38,712 Engineering Services.. .. 10 28,958 Total . £373,769