Hon Tony Ryall
National Party Health Spokesman

13 February 2006

DHBs tackle cash crisis with service cuts

Health services around the country face the axe as more District Health Boards tackle a cash crisis, says National’s Health spokesman, Tony Ryall.

"More and more DHBs are heading into deficit this financial year under the pressure of rising staffing costs and government priorities,” says Mr Ryall.

Both Canterbury and Capital and Coast DHBs are now warning of cuts to services.

"National understands that the financial performance of 15 of the 21 DHBs around the country is deteriorating rapidly.

“The Government has badly miscalculated the effect its centralised wage bargaining has had on hospital budgets. The recent pay increases are costing DHBs far more than the Government has given them.

"Patients languishing on the waiting lists will have an even longer wait as DHBs try to balance their books.

"The full extent of the crisis is becoming clear, with worsening financial positions reported in Southland, Otago, Canterbury, Capital and Coast, West Coast, Waikato, Tairawhiti, and Wanganui. Just wait for the Auckland DHBs,” says Mr Ryall.

ENDS

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