District Health Boards Report Lower Deficit

19 February 2007

District Health Boards Report Lower Deficit

The combined operating deficit of New Zealand's 21 district health boards (DHBs) was $4.7 million for the December 2006 quarter, Statistics New Zealand said today. This was down, compared with the deficits of $8.2 million in the September 2006 quarter and $21.8 million in the December 2005 quarter.

Total DHB expenditure rose by $20.1 million to $2,476.2 million in the December 2006 quarter. Direct provision of public hospital and health services (HHS), at $1,395.9 million, as well as the purchase of medical services from non-government providers and inter-DHB services, at $1,068.2 million, were the two major components of this expenditure. The total operating expenses of the HHS providers were 0.3 percent lower than in the September 2006 quarter, but 6.8 percent higher when compared with the December 2005 quarter. Employee costs, the key expense item, were up 0.8 percent (to $890.6 million) compared with the September 2006 quarter.

Total DHB revenue rose to $2,471.4 million, with funding from the Ministry of Health increasing by $28.2 million (to $2,080.5 million) compared with the September 2006 quarter.

Total DHB investment in fixed assets was $108.2 million in the December 2006 quarter, up 10.6 percent on the September 2006 quarter. For the 2006 calendar year, DHBs spent $389.7 million on additions to fixed assets, $38.7 million more when compared with the previous 12 months. Brian Pink Government Statistician

ENDS

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