Media release Wednesday, 4 August, 1999
HFA and Southern Health sign $61m contract deal
Southern Health and the Health Funding Authority today finalised the contract for the 1999/2000 financial year, which is
worth $61.35 million.
Additional funding for Maori Health Development and for palliative care has been agreed under separate contracts,
The contract covers acute and elective surgery, community services, disability support services, and mental health
services, and is based on last year's volumes plus a 1.2% increase in base contracts that the HFA has offered hospitals.
"This is a very good result for Southern Health. It means we've maintained last year's volume for services when we
expected population trends in the south may have affected our contract position," says Southern Health chairperson
She says in addition services such as rural health services at Queenstown/ Lakes, chemotherapy, and community services,
identified as previously unfunded or under-funded have been worked through and resolved with the HFA.
"It is very good to have the contracting round behind us, and full credit to the people at Southern Health and the HFA
who have worked cooperatively to achieve this result," says Southern Health chief executive Mary Bonner.
HFA spokesperson, Chris Crane says this has been the first year that national consistency has been achieved in hospital
"The successful outcome of the contract process has been the product of a lot of collaborative work between the HFA and
Southern Health," says Chris Crane.
"It has led to a much-improved method of funding, which will ultimately benefit patients wherever they live. What is
also especially pleasing is the way Southern Health have done their best to work to the tight time frames set for the