Deficits Should Not Be Used To Justify Health Cuts

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ATTENTION: HEALTH REPORTER

MEDIA STATEMENT FOR IMMEDIATE RELEASE,
SUNDAY 13 APRIL 2009

“Senior Doctors: Deficits Should Not Be Used To Justify Health Service Cuts”

“Senior doctors don’t want district health board deficits to be used to justify cuts to health services,” said Mr Ian Powell, Executive Director of the Association of Salaried Medical Specialists, today. Mr Powell was responding to the Otago and Southland DHBs decision to cut spending by 5% in their District Annual Plans (2009-10). These Plans require government sign-off.

“While scrutinising the effectiveness of health spending is justified, cutting services that directly or indirectly affect patients is unfair. There should be greater flexibility from government in allowing DHBs more time to get back into a financially breakeven position. Although the deficits may seem a lot of money, in reality they are only a small percentage of their total budgets. Commercial businesses would normally seek to trade their way out of this sort of challenge. Why should health services for patients be treated differently?”

“Expecting the Otago and Southland DHBs to cut health services is harsh. Otago’s estimated deficit is $9.7m, a little over 50% of the money it lost in its recent infamous fraud case. Southland’s estimated deficit is $8m which is largely due to the building of the new public hospital in Invercargill. This does not justify cutting patient services. Further, experience of cutting patient services ends up costing DHBs more down the track.”

“Health bosses running DHBs should be prepared to stand up to government pressure which might lead to cutting patient services rather than behaving like servile lackeys” concluded Mr Powell.

ENDS

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