Hon David Cunliffe

Noting

HR20080115.DHB FINANCIAL PERFORMANCE FOR THE SIX-MONTH PERIOD ENDED 31DECEMBER 2007

ACTION REQUIRED

Note the financial performance of DHBs for the six-month period ended 31December 2007, and highlight any paragraphs not to be posted on the Ministry’s website.

MINISTRY OF HEALTH RECOMMENDATION

That the Minister notes the DHB sector financial performance for the six-month period ended 31 December 2007 resulted in a net surplus of $2.3M that was $19.3M favourable to plan.

That the Minister forwards a copy of this report to the Minister of Finance.

COMMUNICATIONS

The monthly financial report has attracted limited public interest in the past.

OTHER VIEWS

Nil.

ADVISOR RECOMMENDATION/COMMENT

Health Report: 20080115

DHB FINANCIAL PERFORMANCE FOR THE SIX-MONTH PERIOD ENDED 31 December 2007

Advice

1.This report presents an overview of the financial performance of the District Health Board (DHB) sector for the six-month period ended 31 December 2007 based on data provided by the DHBs in monthly financial templates.

2.20 DHBs had approved District Annual Plans (DAP) for the 2007/08 financial year at 31 December 2007. The report on Southland DHB’s DAP has been submitted to the Minister for approval.

Consolidated Statement of Financial Performance ($'000) *
31 December 2007
Year to Date
Actual / Phased Plan / Variance / % Variance **
$ '000 / $ '000 / $ '000
TOTAL REVENUE / 5,375,661 / 5,302,605 / 73,056 / 1.4%
Operating Costs
Personnel Costs / 1,876,558 / 1,866,774 / (9,784) / (0.5%)
Outsourced Services / 182,843 / 146,396 / (36,447) / (24.9%)
Clinical Supplies / 460,102 / 458,874 / (1,228) / (0.3%)
Infrastructure/Other Supplies / 549,400 / 545,894 / (3,507) / (0.6%)
Subtotal / 3,068,904 / 3,017,937 / (50,966) / (1.7%)
Payments to Providers
Personal Health / 1,591,927 / 1,610,661 / 18,733 / 1.2%
Mental Health / 182,745 / 188,846 / 6,101 / 3.2%
Public Health / 3,373 / 1,922 / (1,451) / (75.5%)
Disability Support Services / 507,256 / 479,662 / (27,594) / (5.8%)
Maori Health / 19,199 / 20,568 / 1,369 / 6.7%
Subtotal / 2,304,500 / 2,301,659 / (2,841) / (0.1%)
TOTAL EXPENSES / 5,373,404 / 5,319,596 / (53,808) / (1.0%)
NET RESULT / 2,257 / (16,991) / 19,249 / 113.3%
Average FTEs YTD / 51,255 / 51,796 / 541 / 1.0%
Avg Annual Cost Per FTE ($) *** / 73,225 / 72,082 / (1,143) / (1.6%)
Case Weighted Discharges - Inpatients / 280,131 / 281,868 / (1,737) / (0.6%)
Case Weighted Discharges - Daypatients / 46,439 / 42,822 / 3,617 / 8.4%
Total Case Weighted Discharges / 326,570 / 324,690 / 1,880 / 0.6%
Note:
* The table has been compiled from rounded data and may not necessarily cross add.
** The % column shows the year to date variance as a percentage of phased plan.
*** The cost per FTE is calculated by annualising YTD Personnel Costs divided by the average YTD FTEs .

3.The DHB sector financial performance for the six-month period ended 31 December 2007 resulted in a sector surplus of $2.3M that was $19.3M favourable to plan. Average FTEs YTD continue to be below planned levels (1.0%), highlighting the difficulties facing the sector in the recruitment and retention of permanent staff.

4.Once this report has been signed by the Minster the report will be posted on the Ministry website, exclusive of any paragraphs containing free and frank advice. The address at the Ministry’s website for locating this information is as follows: and select DHB Financial Performance Reports.

Recommendations

The Ministry recommends that you:

(a)noteagreesigninviterefercustomthat the DHB sector financial performance for the six-month period ended 31 December 2007 resulted in a net surplus of $2.3M that was $19.3M favourable to plan. / Yes/No
(b)noteagreesigninviterefercustomthat 20 DHBs currently have approved District Annual Plans for the 2007/08 year. / Yes/No
(c)highlightany paragraphs you do not want to be posted on the Ministry’s website. / Yes/No
(d)refernoteagreesigninvitecustomthis report to the Minister of Finance for his information. / Yes/No

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John Hazeldine

Manager, Finance

Sector Accountability Funding

MINISTER’S SIGNATURE:

DATE:

Health Report number: / 20080115 / Action required by:
Minister’s reference
/OIA number: / File Number: / HC07-16-2
Ministry Contact 1: / Name: John Hazeldine
Phone 04 496 2396
Cell 027 271 3218 / Ministry Contact 2: / Name: Bridget Hesketh
Phone 04 496 2409
Cell
Ministry Contact 3 / Name: Graeme Rule
Phone: 04 496 2445
Cell
Copy to: / DHB Chairs and DHB Chief Executives
Treasury – State Sector Performance Branch
Crown Health Financing Agency
Department of Prime Minister and Cabinet
Deputy Commissioner, States Service Commission
Director-General of Health
Deputy Director-General Corporate Services

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