DHB Finances Continue Strong Note After Six Months

Media Release

24 February, 2006

DHB Finances Continue on Strong Note After Six Months

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

John Hazeldine, the Ministry's DHB Funding and Performance Manager Finance says, "the combined results for the first half of the financial year to the end of June 2006 show that DHBs' actual deficits are better than planned by $9.8 million."

The total planned deficit for the half year to December is $36.3 million. The actual deficit is $26.5 million. This also compares favorably, by $10.3 million with the total actual deficit for the half year to December 2004 of $46.6 million.

"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 been able to produce a higher than planned volume of treatments thus contributing more revenue toward covered their fixed costs," Mr Hazeldine says.

The total planned deficits for the first half of the year ending June 2006 include a carry-forward of $4.2 million 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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