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DHBs financial performance better than forecast

24 March 2005

DHBs financial performance better than forecast

District Health Boards have performed better than their financial forecasts for the period ending 31 January 2005.

Combined results for the country's 21 DHBs show that actual deficits were better than planned by more than $21 million. The total planned deficit for the period was $60.6 million, while the actual deficit was $39.5 million. Some of this favourable result relates to underspending due to delays in implementing new programmes in several DHBs.

Ministry of Health DHB Funding and Performance spokesperson, John Hazeldine, says the result indicates that boards generally have the ability to manage their budgets within allocated resources.

For January 2005, boards recorded a collective surplus of $5.9 million, compared with a planned deficit of $2.8 million.

Boards have planned for a combined surplus of $9.8 million for February 2005, and deficits of $19.1 million in March, $4.3 million in April, $11.9 million in May and $2.5 million in June 2005.

The total planned deficits for the full financial year ending June 2005 include expenditure of $7.3 million of mental health funding carried over from the previous financial year, and a one-off provision of $11.4 million for asbestos removal as part of the redevelopment of Auckland City Hospital.

The Ministry continues to work closely with boards to ensure deficits as a whole are reduced. Auckland DHB is the focus of particular attention as it re-orients itself to take advantage of its new facilities and achieve the benefits planned.

DHBs monthly financial results are published on the Ministry of Health website www.moh.govt.nz/dhbfp under the heading Reports.

ENDS

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