News Video | Policy | GPs | Hospitals | Medical | Mental Health | Welfare | Search


District Health Boards' Operating Deficit Increase

Public Health Financial Statistics: June 2002 quarter

23 August 2002
District Health Boards' Operating Deficit Increases

Provisional results for the June 2002 year show that the operating deficit of the hospital and health service (HHS) provider function of district health boards has reached $217.0 million, according to Statistics New Zealand. Rising expenditure combined with relatively more stable income levels has seen the operating deficit grow $148.7 million in the past year, up from $68.3 million at the end of June 2001. The deficit is now at the highest level recorded since the series began in 1993. Twenty of New Zealand's 21 district health boards have provisionally reported deficits for the June 2002 year after non-operating items have been taken into account.

The total cost of providing public hospital health services reached $4,024.5 million in the June 2002 year, up $214.3 million, or 5.6 percent, on the same period a year ago. Employee costs were the major contributor to this increase, rising 9.1 percent between June 2001 and June 2002, to reach $2470.1 million. Growing debt levels were another factor, which saw interest payments increase 10.0 percent this year to $66.0 million.

Government revenue, which accounts for 92.5 percent of total income, increased 2.6 percent to $3,522.6 million over the same period. However, medical charges and all other income fell 8.2 percent in the June 2002 year, to $276.7 million. As a result, total income rose 1.8 percent, or $65.6 million, to $3,807.5 million over the June 2002 year.

The June 2002 quarterly results also show a significant increase in the seasonally adjusted operating deficit, which reached $83.6 million, up from $35.0 million in the March 2002 quarter.

Higher employee costs combined with a 1.7 percent reduction in seasonally adjusted total income were the main factors contributing to the increase.

Taxpayers' equity fell to $782.9 million at the end of June 2002 as a result of the continuing deficits. This was $118.6 million, or 13.2 percent lower than at the end of June 2001.

Correspondingly, debt levels continued to increase, and total debt at the end of June 2002 totalled $1,827.0 million. This is reflected in the debt to equity ratio, which increased from 1.89 at the end of June 2001 to 2.33 at the end of June 2002.

Total debt is made up of current liabilities ($842.3 million), long-term loans ($932.6 million), and other term liabilities ($52.1 million). Long-term loans increased during the June 2002 quarter, up 8.1 percent since the end of March 2002.

The value of total assets remained steady at $2,609.9 million at the end of June 2002, an increase of 0.1 percent from the end of June 2001. Fixed assets, which make up 83.6 percent of total assets, increased $158.2 million, or 7.8 percent, to $2,180.6 million during the same period.

Investments also increased, up 24.3 percent to $39.4 million in June 2002, compared with $31.7 million at the end of June 2001. Conversely, other current assets fell 33.1 percent to $331.8 million. This is largely explained by reduced cash holdings and lower accounts receivable levels by the HHSs. The debt to fixed asset ratio remained steady on 0.84 at the end of June 2002.

Brian Pink Government Statistician END

© Scoop Media

Culture Headlines | Health Headlines | Education Headlines


Howard Davis: Jill Trevelyan's Rita Angus

Although Angus has become one of Aotearoa’s best-loved painters, the story of her life remained little known and poorly understood before Jill Trevelyan's acclaimed and revelatory biography, which won the Non Fiction Award at the Montana New Zealand Book Awards in 2009, and has now been republished by Te Papa press. More>>

Howard Davis: The Back of the Painting

Painting conservators are the forensic pathologists of the art world. While they cannot bring their subjects back to life, they do provide fascinating insights into the precise circumstances of a painting's creation, its material authenticity, and constructive methodology. More>>

Howard Davis: Black Panthers on the Prowl

A passionate and gripping political drama from Shaka King, this is an informative and instructive tale of human frailty that centers around the charismatic Chicago Black Panther leader Fred Hampton, who was murdered at the age of twenty-one during a police raid. More>>

Howard Davis: Controlling the High Ground

Stephen Johnson's raw and angry film not only poses important questions with scrupulous authenticity, but also provides a timely reminder of the genocidal consequences of casual bigotry and xenophobia. More>>

Howard Davis: Dryzabone - Robert Conolly's The Dry

After the terrible devastation caused by last year’s bushfires, which prompted hundreds of Australians to shelter in the ocean to escape incineration and destroyed uncountable amounts of wildlife, The Dry has been released during a totally different kind of dry spell. More>>

Howard Davis: Hit the Road, Jack - Chloé Zhao's Nomadland

Nomadland is perhaps the ultimately 'road' movie as it follows a group of dispossessed and disenfranchised vagabonds who find a form of communal refuge in camp sites and trailer parks after the economic contraction of 2008. More>>

Howard Davis: Byrneing Down the House - Spike Lee's American Utopia

Lee does an admirable job capturing Byrne's stunning live performance of his latest album, but the real star of the show is the staging. More>>



  • Wellington
  • Christchurch
  • Auckland