More than $1 million of a $4 million injection paid to the Lakes District Health Board last month has to be repaid to the Government because the board owes it $1.1 million in capital charge arrears.
Board members yesterday expressed frustration with the charge after the trouble they had in getting an injection of funds.
Chief financial officer Nigel Dewar told the board that the capital charge was similar to a dividend return to shareholders.
In the case of district health boards, it was an 11 per cent levy on capital investment charged by the Government and payable each month.
The board's chief executive, Cathy Cooney, said Lakes' capital charge payments had been deferred since May last year because of Lakeland Health's projected deficit of $5.6 million for the June year.Operating with a deficit had affected the board's ability to function as a viable organisation, which meant it could not afford to pay the capital charges.
After talks with the Ministry of Health, the board received a $4 million injection to cover its working capital and capital expenditure budget.
The board is still negotiating with the Government over its outstanding funding issues.
Board chairman Alan Vane said an independent joint study this year found that Lakeland Health was underfunded by $9 million a year.
The Lakes board is one of seven district health boards under scrutiny, with an annual planning review by Health Ministry and Treasury officials.
Mr Vane said he hoped the board was not in for a repeat of last year's difficulties in getting its annual plan signed off.
The board will keep pressing for a solution to its funding problems.
Govt cashback angers struggling board
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