By MARTIN JOHNSTON health reporter
An Auckland Healthcare director has resigned in protest in the middle of a row with the Government over alleged underfunding of hospitals.
Andrew Strange told Health Minister Annette King in a strongly worded resignation letter that Government officials had subjected Auckland Healthcare to unsubstantiated criticism, and to arbitrary and unilateral decisions over contracts.
Resignation was the appropriate response to the Government's lack of confidence in the board, said Mr Strange, former managing director of the Renouf Corporation.
The Auckland Healthcare board is forecasting a deficit of $18.9 million this June year as it struggles with big pay rises to stop the flight of doctors and nurses overseas and a cut in revenue.
The Health Ministry has cut its grant a net $6 million, or about 1 per cent, while the Auckland board says it is not getting enough money for high-level national or regional services such as heart transplants and children's cancer treatment.
The ministry is trying to introduce nationally consistent prices.
Mr Strange said the old Health Funding Authority had simply imposed new prices for services, despite agreeing in the contract for the last June year to continue with its prices until a new deal was struck.
Auckland Healthcare director quits in cash row
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