HOSPITAL ESTIMATES INCREASED

Timaru Herald, Volume CXLVI, Issue 21324, 19 April 1939, Page 8

HOSPITAL ESTIMATES INCREASED

Larger Levy on Local Bodies Burden of Heavier Costs Practically Beyond Board s Control ‘I am sorry that the estimates do not make better reading but I regard the matter as practically beyond our control.” This comment was made by the chairman of the South Canterbury Hospital Board (Mr E. Macdonald) at yesterdays meeting when the estimates for 1939-40 were confirmed. The estimates provided for an increase on last year of £7,095 or 26.2 per cent, in the amount to be levied on local contributing bodies.

In submitting statements showing the estimated requirements of the Board for the financial year ending March 31. 1940, with a comparison of the actual and estimated receipts and expenditure of previous years, the treasurer (Mr H. G. Naylor) said that the year had closed with a deficit of £4126. In the actual receipts for 1938-39 the revenue from patients’ fees, etc., amounted to £15,712 being £93 less than the estimate, and £634 less than the actual receipts of the previous year. The actual maintenance expenditure for 1938-39 was £62,856, being £4408 more than the estimate and £8679 more than the actual expenditure the previous year.

The actual capital expenditure for 1938-39 was £6456, being £2695 less than the estimate, and £514 less than the actual expenditure the previous year. The treasurer explained that receipts for the current financial year were estimated at £14,785, being £lO2O less than the estimated and £927 less than the actual receipts last year. Fees had shown a tendency to fall away latterly and with the decreased returns for primary products, it was anticipated that the collections this year will be less than last year. The maintenance expenditure for the current year was estimated at £69,194. being £10,746 more than last year’s estimate and £6338 more than the actual expenditure. Capital expenditure for the current year ■was estimated at £11,572, being £2421 more than the estimated, and £5116 more than the actual expenditure last year. The principal increases are:—

Replacement of X-ray plant .. 2,500 New Ambulance, Timaru Hosp’l 650 Loan repayments 726

Total 3,876 The net maintenance expenditure (i.e., expenditure less revenue receipts) was estimated at £58,936, being £15,995 (37.2 per cent) more than last year. The total net expenditure which was to be found by levy and subsidy, was estimated at £70,106, being £18,321 (35.3 per cent.) more than last year. The increase was made up as follows: £ Maintenance expenditure inc. . 10,746 Capital expenditure increase .. 2,421 Patients fees, etc., decrease .. .. 1,020 Difference in cash balances .. 4,134 Total 18,321 Levies on Contributing Bodies The amount to be levied on local contributing bodies compared with the previous year, was as follows: 1938-39 1939-40 £ £ Maintenance 22,321 29,411 Capital 4,420 4,425 Totals £26,741 £33,836 An increase of £7.095 or 26.5 per cent. The--rate to be levied was .399 d per £1 of rateable capital value compared with ,316 d last year, an increase of 26.2 per cent. The amount to be provided by Government subsidy (including £2320 unpaid last year) compared with the previous year, would be as follows: 1938-39 1939-40 £ £ Maintenance 20,624 29,525 Capital 4.420 6,745 Totals £25,044 £36,270 An increase of £11,226 or 44.8 per cent. The rate of maintenance subsidy payable on maintenance levies would be 20/0.93d in the £ compared with 18/5.75d last year, an increase of 1/7.18d in the £ or 8.64 per cent.

The principal Increases in the actual maintenance expenditure for 1938-39, (and which were mainly responsible for the deficit of £4126,) compared with the estimates, were as follows:

Salaries and wages (increases imposed by Domestic Agreement and Laundry and Local Bodies Workers’ Award 1,725 Timaru Hospital: Provisions 619 Laundry closing down for 6 weeks, repairs and renewals of furniture and unforeseen maintenance expense incidental to new buildings 526 Drugs, surgical instruments, dressings, chemcals, etc 975 Waimate Hospital: Increased consumption of foodstuffs, fuel and light, etc 205 Drugs, surgical instruments, dressings, chemicals, etc 118 Increased prices (common to all institutions) had been partly responsible for the excess expenditure at Timaru Hospital under provisions, and in addition the consumption of foodstuffs had increased. At Timaru Hospital, an increased number of anaemic and pneumonic cases were treated with new expensive drugs, and emergency purchases of dressings, drugs, etc., were made during the September crisis. These two factors alone accounted for £550. In addition operations increase* by 235,

confinements by 10, and outpatient treatments by 263. This increased activity involved additional expenditure in most departments.

Increased Maintenance

Compared with the estimate last year the increase in this year's maintenance expenditure was estimated at £10,746, and the principal reason for this was the increase in the items, salaries and wages. At the commencement of 1938-39. the total number of employees was 204. and the wages provided £25,447. This year the number of employees provided for was 232, and the wages estimated at £31,993; an increase in staff personnel of 28. and wages to be paid of £6546, or 25.7 per cent. The increase in staff was made up as follows: Nursing 6, stokers 2, painters 1. porters 4, domestic 10, laundry 3, and aids 2. With the exception of the nursing staff and painter, the additions are due to the domestic agreement and industrial awards. Provision had also been made for the following new items: Nurses’ holiday board and lodging allowance (to place nurses on same basis as domestic staff) £381; uniform allowances for pupil nurses £36; District Nurse, Waimate, £225. It had been found necessary to employ a hospital aid at both Fairlie and Geraldine, to enable the domestic at each institution to have six days off in each 28 day period. No definite information was to hand regarding the introduction of the Hospital Benefits under the Social Security Act, and provision had not therefore been made for increased medical salaries. Prices of goods are tending to increase. Butter had increased by 2d per lb., eggs by an average of 2d per doen, bacon by lid per lb., milk by Id per gallon, cream by Id per pint, household coal by 4/- per ton, steam coal by 2/9 per ton and fish by an average of 2d per lb. Provision must also be made for boarding additional staff. With the opening of the new surgical block, boiler house and porters’ quarters, Timaru Hospital, it was anticipated that the extra cost of servicing would be not less than £750. This year the full amount of interest on loan sanctions must be provided. The only other item calling for comment was “Payment to other Boards” for maintenance of South Canterbury patients in outside hospitals. It had been thought prudent to increase this provision. The reasons for the increase in maintenance expenditure could therefore be summarised as follows: £ Salaries and wages 6,546 Boarding extra staff 850 Interest on loans 1.158 Increased prices ■ 385 Servicing new buildings .. .. 750 Payments to other Boards .. 200 Ambulance grant 200 Refund to Treasury 183 Total £10,272 Mr B. R. Macdonald said that although the estimates made difficult and unhappy reading, the Board had to congratulate Itself on keeping expenditure down to a minimum. In that direction it had also to thank the staff who were at all times alive to the interests of the Board. The estimates were confirmed. WELLINGTON’S EXPERIENCE By Telegraph —Press Association WELLINGTON, April 18. The Wellington Hospital Board estimates the expenditure for the year ending March 31, 1940, at £1,070,132, and receipts at £733,843, leaving £336,289 to be found by local bodies and Government compared with £236,489 last year. Local bodies are required to contribute by way of levy £155,909/8/6, compared with £112,193/15/1 last year, an increase of 38.2 per cent. The Government is required to contribute by way of subsidy £181,198/11/6, compared with £124,295/4/11 last year, an increase of 45.7 per cent. The Wellington City Council’s contribution is £116,455, compared with £84,316 last year. The estimated loan expenditure is £653,915 against an actual expenditure of £12,613 last year.