Town offers cut-price surgery

By AINSLEY THOMSON

Tokoroa Hospital is hiring its operating theatre to a private company offering cut-price surgery as an alternative to lengthy public waiting lists.

The South Waikato hospital is the only one in the country that has entered into such an arrangement, says the Ministry of Health.

The company, Central Theatre, is offering elective surgery, such as hernia and varicose vein operations, for prices that it claims are up to a third cheaper than those offered by other private companies.

And the cheap prices are attracting interest from Aucklanders who are prepared make the three-hour trip to Tokoroa to save money.

The man behind the discount surgery is Tokoroa businessman Alex Merrie. He discovered five years ago that the town's operating theatre was only being used two or three days a week, despite people complaining about waiting lists and the high price of private surgery.

His solution was to form Central Theatre and to negotiate with the Waikato District Health Board to buy the surplus theatre time.

"Then I negotiated good prices with the surgeon and anaesthetist. So I'm making savings everywhere and using an existing resource.

"I'm trimming off the fat, so to speak, and can deliver surgery at very good prices."

As the contract was the first of its kind for the Waikato board, negotiations took about three years and had to be approved by the Minister of Health.

Board spokesman John Lomas said Tokoroa Hospital was built a long time ago and had facilities that were not used all the time.

The contract with Central Theatre was "simply making better use of the facilities that exist", he said. "

Central Theatre's first operations at Tokoroa were performed before Christmas on patients from Thames, Rotorua and Taupo.


In the past week Mr Merrie has begun advertising in local papers in Auckland, offering, in the classified section between ads for fridges and lounge suites for sale, surgery at "greatly reduced prices".

"People in Auckland are interested. It's the price that is attracting them," he said.

They were comfortable with travelling when it was saving them $1500.

Central Theatre provides an overnight stay at Tokoroa Hospital for $280, which compares with the Ascot Hospital in Auckland, at $480 a night.

The company also has set prices for operations irrespective of the length of time they take.

When the Herald asked Southern Cross about its prices for hernia and varicose vein operations, it was told the company was "uncomfortable with price comparisons of surgical procedures carried out in our hospitals versus the cost of procedures carried out in small towns such as the Tokoroa facility".

Consumers' Institute chief executive David Russell said he believed Central Theatre's services could be an advantage to consumers.

"But we have to make sure it doesn't mean the public access to the facilities is restricted."

Comparing prices

Comparison of Southern Cross 2002 operation costs and Central Theatre

Central theatre

Hernia operation $2265

3260Varicose veins (both legs) $2750


Southern Cross

Hernia operation $3260

Varicose veins (both legs)$5040


Source - Southern Cross Jump! magazine, Central Theatre