Southern DHB Commissioner’s term extended - deficit progress made

Health Minister Jonathan Coleman says the Southern DHB Commissioner team is starting to turn around the deficit challenge, and their term will be extended as more time is needed to implement the work plan.

A Commissioner was appointed in June following serious concerns over the Board’s financial performance. A spiralling deficit had been forecast and it was expected to increase up to $42 million for 2015/16.

“An improved deficit position of $35.9 million for 2015/16 for Southern DHB has been agreed, which shows progress is being made,” says Dr Coleman.

“A Bill is being introduced to Parliament today to extend the term of the Commissioner and her team. The DHB’s long-standing financial issues are unlikely to be addressed by the end of their term on 2 December 2016.

“Achieving financial stability is a long term process. The Commissioner and her team have recently been consulting with staff on the future direction of the DHB’s services as set out in the work plan.”

A Commissioner can only hold the position until Board members come into office following the next DHB election.

“Exempting Southern DHB from next year’s Board elections is essential to give the Commissioner team time to implement the financially sustainable plan to ensure that high quality health services are delivered, as well as the vital redevelopment of Dunedin Hospital,” says Dr Coleman.

“It will also ensure that the next Board, to be appointed as part of the 2019 local body elections, will begin its term on a more secure financial footing.”

The one-off legislative amendment in the New Zealand Public Health and Disability (Southern DHB) Elections Bill will be introduced today.