"We estimate that 70 per cent of this was being spent on replacing items," he said.
"As an example, we estimate that about 24 walking frames have had to be replaced."
It costs $200 to replace a walking frame. A pair of aluminium crutches cost $79, a wheelchair $500 and shower stool $95.
Mr Kidd said the loss of the equipment, loaned out to people to aid their recovery, was having health implications for other patients.
"If we don't have the equipment, people in need don't get the support they require when they require it, which delays their recovery or being able to return home," he said.
"In the last eight months we have issued 741 walking frames, which is about three a day. So you can see how that can soon become a problem if they are not returned.
"For the last two weeks we have run very low on crutches for inpatients and Rehabilitation Equipment Services has run out of walking frames to issue in the community."
Mr Kidd said the return of equipment requests were being met with varying degrees of success.
"It's not a good use of our health resources to be buying new equipment when there is so much equipment in the community which is not being used," he said.