Surplus Forecast For Healthcare Otago

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

"This year the hospital is forecasting a loss of $3.5 million, which is a substantial improvement on the 1997/98 loss of $24.3 million. The following year it is forecasting a break-even result, followed by a surplus of $2.5 million in the 2000/01 year. Any surpluses achieved will be ploughed back into health services.

"I would also note that the hospital's performance to date this year is ahead of that forecast in the business plan.

"Other highlights of Healthcare Otago's current performance include the 'one city one site' plan to move all services to the Dunedin Hospital site and the planned handover of services in Balclutha and Oamaru, which are on target.

"Healthcare Otago has recently invested in a new Accident and Emergency centre and this is working well.

"The new vision of Healthcare Otago, supported by recent board and senior staff changes, has also contributed to the hospital making good progress. There has been an encouraging response from staff to this new direction," said Mr English.