Good News For Hospitals In Deficit Figures

Health Minister Bill English said figures released today showing a reduction in hospital deficits confirmed that the Government's strategy to take action on hospital deficits was paying off.

"Figures released today by Statistics New Zealand shows that for the first quarter of the year hospitals' deficit was $10 million, down from $40 million for the same quarter last year.

"Hospitals' income has also been boosted by nearly $50 million in this first quarter, with extra funding for elective surgery and mental health services contributing to the increase.

"Today's figures are good news for our public hospitals. People want certainty about hospital services and an end to the substantial losses that hospitals have suffered in the past.

"The Government has always covered the losses made by hospitals, but the funding transfer announced in this year's Budget has put them on a much sounder footing. It means that can concentrate on the job of providing health services to the public.

"This transfer, referred to as the deficit switch, was finalised in August and saw $130 million transferred to the Health Funding Authority so it could pay public hospitals a fair price for health services," said Mr English.