Starship doctors worry about new payment formula

By REBECCA WALSH

Starship doctors are worried a new funding formula for treating patients from outside the region will leave the hospital out of pocket - and potentially damage the viability of its specialist services.

Doctors at the children's hospital, which was at the centre of a naming row in the past few weeks, say it is vital they are able to provide a service for the most complex cases around the country - but they need the money to do it.

Dr Scott Macfarlane, clinical leader of Starship, said the hospital treated about 1000 patients from outside the region each year but Starship received only an average price for their care.

From July 1 under population-based funding, money the Government previously paid directly to Starship for treating patients outside its region will now go the district health board where the patient lives. The district health board will contract with another board for services it is unable to provide.

But Dr Macfarlane did not expect that to change the amount Starship received significantly and said if Starship's board was continually under pressure to cut costs it was logical it would look at "those patients who are losing it the most money".

"Those are the patients who our paediatric colleagues around the country require us to be able to treat ... if we can't treat them, where do they go?"

Dr Macfarlane said it cost between $55,000 and $70,000 for a kidney transplant but Starship received only $15,000 in funding.

"We need those kidney transplants to come here so we maintain a highly specialised renal transplant service but every time we successfully attract a renal transplant, from Waikato say, we lose $55,000 on it."

Dr Macfarlane said it was an issue for all hospitals providing national services. National co-ordination about how resources would be distributed was needed.

Health Minister Annette King said the new funding formula would be an improvement for Starship.

"If a patient is sent from West Coast to Starship, then the West Coast has a responsibility to pay money to Starship. That starts on July 1 this year."

The formula would recognise the extra costs for boards that provided tertiary services, such as Starship.

Ms King said while Starship was a regional tertiary children's hospital it would continue to provide high-level procedures to patients from around the country.