The Ministry of Health believes the District Health Boards are generally managing well their financial performance.
The combined results for the six months to the end of December 2004 show that DHBs' actual deficits are better than
planned by $12.3m.
The total planned deficit for the six months to December is $57.8m. The actual deficit is $45.5m. The difference is
largely explained by underspending due to delays in putting in place new programmes in several DHBs.
The total planned deficits for the full financial year ending June 2005 includes the spending of $7.3m of mental health
funding carried over from the previous financial year, and a one-off provision for $11.4m for asbestos removal as part
of the redevelopment of Auckland City Hospital.
The Ministry continues to work closely with boards to ensure that deficits as a whole are reduced. Auckland DHB is the
focus of particular attention as it re-orients itself to take advantage of its new facilities and achieve the benefits
planned.