Minister sacks Southern District Health Board

Health Minister Jonathan Coleman. File photo / NZ Herald

The Health Minister has dismissed all members of the Southern District Health Board and replaced them with a commissioner.

Jonathan Coleman wrote to the DHB today saying he had no confidence in the Board's ability to suitably handle longstanding financial problems.

The Southern DHB's deficit forecast for the 2015/16 financial year accounted for more than half the combined deficit of all 20 DHBs, Mr Coleman said.

"Southern is forecasting a final deficit of $27 million for the current financial year. That figure has effectively doubled in the last six months ... This situation of fluctuating forecasts and progressively worsening deficits cannot continue."

Kathy Grant has been appointed as Commissioner, and Mr Coleman said she brought "significant local knowledge" to the role.

"She has significant business and governance experience and a proven track record in turning around struggling organisations.

"[Her] team will bring together a mix of strong financial, governance and clinical skills."

Ms Grant would start in the position tomorrow.

"I would like to thank the Board members for their work to date," said Mr Coleman.

"My decision is not intended to devalue their efforts and achievements. However, a new approach is now necessary.

"My decision is based on the need for a new approach to the DHB's longstanding financial issues, and to help move the DHB to a more sustainable position over time."