Surplus Forecast For Health South Canterbury

Health Minister Bill English said today he had supported Health South Canterbury's business plan for the year and noted the hospital was forecasting a small surplus by the 2000/01 financial year.

"One of the key issues for Health South Canterbury is the reconfiguration of Timaru Hospital and the business plan includes $10.5 million for this. A business case is being reviewed by officials and will be submitted to Ministers shortly for consideration.

"The 1998/99 business plan forecasts a loss of $3.6 million in this financial year, a small loss of $0.4 million the following year, and then a small surplus of $1 million in the 2000/01 year. Any surpluses achieved will be ploughed back into health services.

"Health South Canterbury has secured a three year contract with the Health Funding Authority and that gives on-going certainty to services.

"I am pleased to see the hospital move on to a firmer financial footing because that will mean security for the services it provides for the people of South Canterbury," said Mr English.