Commissioner appointed at Southern DHB

Hon Dr Jonathan Coleman

Minister of Health

17 June 2015

Health Minister Jonathan Coleman has today written to Southern DHB dismissing all members of the Board and replacing it with a Commissioner.

“The financial problems at Southern DHB are longstanding. I do not have confidence that the current governance arrangements are suitable for delivering on the changes required in Southern DHB,” says Dr Coleman.

“Southern is forecasting a final deficit of $27 million for the current financial year. That figure has effectively doubled in the last six months.

“The DHB has also forecast that its deficit position will further increase in 2015/16 to between $30 million and $42 million – this accounts for over half the combined deficit of all 20 DHBs. This situation of fluctuating forecasts and progressively worsening deficits cannot continue.

“The Government is committed to the redevelopment of Dunedin Hospital and the provision of high quality health services to all the people of the Southern region.

“All DHBs are funded according to the same population-based funding formula. This formula includes adjustments to recognise rural populations, age and other demographic issues.

“In a tight fiscal environment, all DHBs need to use available funding effectively. No other DHB has failed to control its finances in the way that Southern has.”

Kathy Grant has been appointed Commissioner and takes up the role on 18 June 2015. After discussions with Mrs Grant, she has indicated that she intends to appoint Graham Crombie and Richard Thomson as deputies. A third deputy with a strong clinical background will be appointed by the end of the month.

“Mrs Grant is from Otago and brings significant local knowledge. She has significant business and governance experience and a proven track record in turning around struggling organisations,” says Dr Coleman.

“The team will bring together a mix of strong financial, governance and clinical skills.

“I would like to thank the Board members for their work to date. 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.”

Media contact: Angela Kenealy 021 220 0129 or 04 817 9902

 

Last updated: Wednesday, June 17, 2015