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Hospital managers cost half a billion dollars

Hon. Tony Ryall MP
National Party Health spokesman

21 May 2005

Hospital managers cost half a billion dollars

Salaries for hospital managers and administrators will top half a billion dollars for the first time this year as the health bureaucracy grows out of control, says National’s Health spokesman, Tony Ryall.

Latest figures show that the number of health bureaucrats has jumped by almost 2000, a rise of 23%, and the cost by 35%, since Labour came to power.

These numbers do not include the 1,100 Ministry of Health staff, PHO managers or consultants.

“These figures prove exactly what National has been saying all along – that the health bureaucracy is growing out of control while far too many people are forced to wait an unfair amount of time for operations – if they get them at all,” says Mr Ryall.

"Helen Clark says there's no fat in the system. These figures prove there is plenty of fat in the health bureaucracy and it needs to be cut out.

“The Government has been trying to mislead the public on the extent of the blowout in the health bureaucracy by fudging the numbers.

“Pete Hodgson said in his maiden speech as Health Minister earlier this month: ‘The flipside of the myth, that it has all been spent on bureaucrats, also needs to be exploded. About 1.5 per cent of health expenditure goes to the Ministry of Health; the other 98.5 per cent goes to those who deliver services. The number of bureaucrats in the Ministry of Health has remained virtually unchanged from six years ago.’

"When you've got thousand of patients being culled from waiting lists, you don't need to be employing more and more managers and administrators,” says Mr Ryall.

The information comes from answers to parliamentary questions. They show a 23% increase in the number of health managers and administrators. In addition, the Government claims the Health Ministry has grown from 1,020 to 1,090 since 1999, but this does not include PHO managers and consultants.

"On top of the half billion dollars for hospital managers, you have to add the
$80 million of salaries in the Health Ministry and the public money to run the 80-something PHOs – and you can see the health bureaucracy is growing like topsy.”

Ends
Attachments: Increase in number and cost of health bureaucrats (2 pages)

Answer to Written Question 4530 (2006):
Management/Administration Personnel Costs (Account Code 2802)
Year to date 31 March 2006 compared to each of the previous five full financial years ($000)

DHB Name1 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2005/06
Full Year Full Year Full Year Full Year Full Year Est Full Y MarYTD
$0 $0 $0 $0 $0 $0 $0
Auckland DHB 73,343 69,222 72,907 95,211 94,110 93,624 70,218
Bay of Plenty DHB 13,052 15,688 17,167 18,745 20,205 23,165 17,374
Canterbury DHB 41,777 42,741 45,505 47,916 49,851 51,900 38,925
Capital & Coast DHB 34,075 36,961 37,768 38,855 37,860 36,620 27,465
Counties Manukau DHB 34,865 36,897 34,271 33,013 35,119 37,288 27,966
Hawke's Bay DHB 13,597 17,108 15,973 17,494 19,071 19,877 14,908
Hutt Valley DHB 10,509 11,718 12,587 13,520 15,618 17,540 13,155
Lakes DHB 8,213 9,420 10,589 11,239 12,724 13,461 10,096
MidCentral DHB 14,240 16,027 20,057 20,860 23,049 24,352 18,264
Nelson Marlborough DHB 9,699 10,796 11,821 12,973 13,985 15,189 11,392
Northland DHB 11,260 15,001 15,484 16,825 19,254 18,419 13,814
Otago DHB 17,733 19,492 20,787 20,807 27,478 22,955 17,216
South Canterbury DHB 3,874 4,792 4,964 4,916 5,031 5,979 4,484
Southland DHB 6,473 7,320 7,638 8,298 9,129 9,684 7,263
Tairawhiti DHB 4,488 5,228 5,452 5,819 6,320 6,880 5,160
Taranaki DHB 7,685 9,880 10,901 10,188 11,300 11,472 8,604
Waikato DHB 32,659 34,753 37,796 41,189 45,448 47,951 35,963
Wairarapa DHB 3,219 4,183 4,691 4,857 5,022 5,287 3,965
Waitemata DHB 27,679 32,487 30,624 31,092 35,261 37,980 28,485
West Coast DHB 3,323 4,743 4,247 4,491 5,019 5,385 4,039
Whanganui DHB 7,626 7,372 7,633 8,711 8,718 8,639 6,479
Total 379,389 411,829 428,862 467,018 499,571 513,647 385,235

Source: BaP$ database, from monthly templates supplied by DHBs

1. Canterbury DHB includes Health Link South data for 2000/01
2. 2005/5 Estimate full year based on scaling up 9 month information provided in answer

Actual Consolidated Management/Administration FTEs
31 December 2005 compared with previous 6 years

DHB Name1,2 1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06
31/12/1999 31/12/2000 31/12/2001 31/12/2002 31/12/2003 31/12/2004 31/12/2005
FTEs FTEs FTEs FTEs FTEs FTEs FTEs
Auckland DHB 1,377 1,496 1,174 1,458 1,473 1,412 1,525 11%
Bay of Plenty DHB 318 339 359 389 399 421 474 49%
Canterbury DHB 896 956 771 979 1,059 1,073 1,094 22%
Capital & Coast DHB 657 678 714 725 727 688 670 2%
Counties Manukau DHB 579 292 665 600 592 579 615 6%
Hawke's Bay DHB 264 297 366 349 381 399 397 50%
Hutt Valley DHB 221 237 246 258 289 303 322 46%
Lakes DHB 157 178 171 207 211 230 242 54%
MidCentral DHB 339 353 274 434 467 492 523 54%
Nelson Marlborough DHB 231 238 249 267 269 268 282 22%
Northland DHB 289 331 358 381 357 346 365 26%
Otago DHB 376 397 424 445 435 442 455 21%
South Canterbury DHB 88 96 100 101 100 96 119 35%
Southland DHB 155 161 160 178 192 198 198 28%
Tairawhiti DHB 114 106 128 125 131 139 145 27%
Taranaki DHB 195 209 189 217 215 233 235 21%
Waikato DHB 775 758 763 825 875 902 944 22%
Wairarapa DHB 84 83 79 105 104 105 104 24%
Waitemata DHB 511 570 591 581 592 637 674 32%
West Coast DHB 85 81 91 93 93 96 101 19%
Whanganui DHB 173 175 154 171 193 188 184 6%
Total 7,883 8,032 8,026 8,888 9,153 9,247 9,669 23%

Source: BaP$ database, from monthly templates supplied by DHBs

1. Canterbury DHB includes Health Link South data for 1999/00
2. FTE figures for 31/12/04 were taken from December 2004 monthly templates for all DHBs except Auckland which
had incorrect data. Auckland DHB's FTE figure was taken from the February 2005 monthly template.

ENDS


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