Staff shortages and growing pharmaceutical costs are just two of the areas pumping up the Whanganui DHB's budget overspends.
Locum medical cover at Wanganui Hospital to shore up clinical staff shortages was running at nearly twice the figure the board had initially budgeted and pharmaceutical costs were more than $600,000 over budget.
Jeanette Black, hospital general manager, said cover by locums had been budgeted at $425,000 for the year but had blown out to $824,000.
Ms Black told the board's community and public health and disability support advisory committee that locums were providing cover mainly in the field of anaesthetics, obstetrics, gynaecology, general surgery and orthopaedics where the hospital was carrying staff shortages.
The committee also learned at its October 10 meeting that pharmaceutical costs were $619,000 over budget for this year and one of the main contributors had been antibiotics prescribed this winter.
CPHAC committee member Allan Mangan said while there had been some virulent illnesses around this winter it was an "incredible expenditure" on antibiotics.
But Tracey Schiebli, general manager health planning, improvement and funding, said this represented a trade-off between the expectation of health outcomes and financial constraints.
Ms Black said that while Health Minister David Cunliffe had signed off the annual plan, he was clear about his expectations about the board achieving financial sustainability.
She said Mr Cunliffe had some positive things to say about the efforts the board was making on reducing inequalities and improving the management of chronic conditions in the district.
"However, the minister is clear about his expectations of the board in relation to achieving financial sustainability and living within our allocated funding and this expectation will underpin our planning for 2009/10," she said.
She told the committee that she wanted the focus to be on building on gains already made in the health operation "rather than developing a large number of new initiatives".
The committee asked its management team for constant and up-to-the-minute information on the board's budget.
In his letter, Mr Cunnliffe said he expected the board to focus on improving elective services while continuing to explore "more sustainable specialist services" with neighbouring DHBs.
"I expect robust financial performance and that you continue to keep the ministry informed of emerging risks," he wrote.
Staff shortages and drugs cost DHB plenty
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