The West Coast District Health Board has recorded an interim full year deficit (subject to Audit) of $6.7 million for the 2007-08 financial year.
The DHB had total revenue of $110,779 M in funding during the year, with total expenditure of $117,497 M. This result was $2.1 million worse than budget with the main drivers being unplanned outsourced services costs (mainly relating to locums and visiting medical specialists) of $3.4 M and increased depreciation expense due to the revaluation of the Grey Base hospital of $1.2 M.
Wage and salary costs of $46.5 M were $0.8 M worse than plan ($45.8 M), due to the combined effects of recruitment costs, higher rates paid to attract and retain some groups of clinical staff, multi employer collective employment agreements that have been settled a rates higher than those budgeted by the DHB. Increased costs to budget have been partially offset by increased revenue received for new initiatives and interest payments received.
The DHB has absorbed the deficit and remains in a strong financial position.
Acting Chief Financial Manager Colin Weeks said it was disappointing to report a deficit worse than budget but this represents the cost of delivering health services on the West Coast.
Chief Executive Kevin Hague said despite the financial deficit the DHB had performed well overall and had developed and implemented some exciting new initiatives.
"The new Dementia Care Unit, He Oranga Kahurangi, is open and functioning well, the Greymouth Medical Centre has been relocated into a refurbished facility, the CT scanner was upgraded, and construction began on a new health clinic at Ngakawau. The second year of the West Coast DHB scholarships saw increased numbers of West Coast students studying towards careers in health, while the development of positions in the Smokefree area, HEHA initiatives and Carelink will do much to promote and enhance the future health of West Coasters. These are just a few examples of the many initiatives staff and the Board have worked to achieve," Mr Hague said.
"The joint WCDHB and Ministry of Health Sustainability project is looking at the future health needs of the West Coast and how to best meet them. It is also looking at developing a funding mechanism that will support and provide for future services."
It is important to note that this is an interim result, subject to any changes that come out of our year end audit process. Most year end items are now known, however there is a risk that our final audited result will differ from that presented in this release.
For more information please contact
Bryan Jamieson
Community Liaison Officer
West Coast DHB
PO Box 387
Greymouth 7840
Phone (DDI): (03) 769-7665
Mobile: 027 245-9595
Email: