"However, the bottom line is that Lakes DHB does not want to see clinical safety compromised, so is seeking savings in areas that do not compromise clinical safety."
He said the second half of the financial year saw high acute inpatient volumes which had contributed to additional costs in other areas such as nursing, consumables, pharmaceuticals and anaesthetist sessions.
"Additionally, Lakes DHB has provided a level of elective surgical services considerably above what we were contracted to provide."
Mr Dunham said the health board tried hard to continue to provide services within the funding provided.
"It is not always easy to get the balance right between quality of services and cost and the health gain for our patients.
He said the focus was on achieving savings in areas that did not impact on the delivery of clinical services, such as reducing non-essential travel out of the district and some learning and development training.
If the health board was to come under more intensive monitoring it would result in closer scrutiny of the board's financial performance and increased interaction between the health board and the Ministry of Health.
Mr Dunham said the forecast for the current financial year, which began in July, is for a break-even position.
