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DHB Finances start financial year on strong note

23 November 2005

DHB Finances start financial year on strong note

The Ministry of Health continues to see evidence that District Health Boards are generally managing their financial performance well.

The combined results for the first quarter of the financial year to the end of June 2006 show that DHBs' actual deficits are better than planned by $9.8M.

The total planned deficit for the quarter to September is $14.7M. The actual deficit is $4.9M. A major contributor to the difference is Auckland DHB, which is starting to show evidence of gains from its major hospital re-development. Auckland DHB has also undertaken a higher than planned volume of treatments in the late winter thus contributing more revenue toward covered their fixed costs.

The total planned deficits for the first quarter of the year ending June 2006 include a carry-forward of $4.2m of mental health funding from the previous year which was unspent, and in this year will show as a deficit due to accounting practice.

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

ENDS

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