DHBs Report Small Operating Deficit

District Health Boards Report Small Operating Deficit

The combined operating deficit of New Zealand's 21 district health boards (DHBs) was $2.7 million for the June 2006 quarter, Statistics New Zealand said today. This quarter's deficit was lower than the deficits of $12.5 million in the March 2006 quarter and $15.5 million in the June 2005 quarter. For the year ended 30 June 2006 there was a combined deficit of $41.8 million.

Total DHB expenditure rose $122.7 million (5.4 percent) to $2.4 billion in the June 2006 quarter. For the June 2006 year, the increase was $865.3 million (up 10.3 percent) compared with the previous June year. The major components of expenditure for the latest quarter were the direct provision of public hospital and health services (HHS), $1.4 billion, and the purchase of medical services from non-government providers and inter-DHB services, $971.9 million.

Total operating expenses of the HHS providers increased 9.1 percent this quarter, and were up 5.1 percent compared with the June 2005 quarter. Employee costs, the dominant expense item, rose 8.4 percent (to $906.1 million) this quarter.

Total DHB revenue rose $132.5 million (5.8 percent) to $2.4 billion in the June 2006 quarter.

The major component of revenue, funding from the Ministry of Health, increased $98.7 million to $2.0 billion.

For the year ended 30 June 2006, total DHB revenue rose $855.3 million (10.2 percent) compared with the previous June year.

Brian Pink

Government Statistician

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