Ref. No.: 20080320

Hon David Cunliffe

Noting

HR20080320:DISTRICT HEALTH BOARD (DHB) FINANCIAL PERFORMANCE FOR THE SEVEN-MONTH PERIOD ENDED 31JANUARY 2008

ACTION REQUIRED

Note the financial performance of DHBs for the seven-month period ended 31January 2008, 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 seven-month period ended 31 January 2008 resulted in a net deficit of $7.1M that was $30.6M 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

Ref. No.: 20080320

Action required by: / 1 April 2008 / Date sent to Minister:
Minister’s reference/
OIA number: / 20080320 / File number: / HC07-16-2

Hon David Cunliffe

DHB FINANCIAL PERFORMANCE FOR THE SEVEN-MONTH PERIOD ENDED 31 January 2008

Advice

1.This report presents an overview of the financial performance of the DHB sector for the seven-month period ended 31 January 2008 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 January 2008. The report on Southland DHB’s DAP had been submitted to the Ministers of Health and Finance for approval.

Consolidated Statement of Financial Performance ($'000) *
31 January 2008
Year to Date
Actual / Phased Plan / Variance / % Variance **
$ '000 / $ '000 / $ '000
TOTAL REVENUE / 6,264,202 / 6,175,579 / 88,623 / 1.4%
Operating Costs
Personnel Costs / 2,196,697 / 2,188,034 / (8,662) / (0.4%)
Outsourced Services / 212,139 / 170,598 / (41,540) / (24.3%)
Clinical Supplies / 532,106 / 531,759 / (346) / (0.1%)
Infrastructure/Other Supplies / 639,444 / 637,206 / (2,238) / (0.4%)
Subtotal / 3,580,385 / 3,527,598 / (52,787) / (1.5%)
Payments to Providers
Personal Health / 1,860,069 / 1,879,431 / 19,362 / 1.0%
Mental Health / 214,511 / 220,233 / 5,722 / 2.6%
Public Health / 4,218 / 2,236 / (1,982) / (88.7%)
Disability Support Services / 591,111 / 559,714 / (31,396) / (5.6%)
Maori Health / 21,032 / 24,093 / 3,061 / 12.7%
Subtotal / 2,690,941 / 2,685,707 / (5,234) / (0.2%)
TOTAL EXPENSES / 6,271,325 / 6,213,305 / (58,021) / (0.9%)
NET RESULT / (7,124) / (37,726) / 30,602 / 81.1%
Average FTEs YTD / 51,005 / 51,370 / 365 / 0.7%
Avg Annual Cost Per FTE ($) *** / 73,832 / 73,018 / (814) / (1.1%)
Case Weighted Discharges - Inpatients / 323,696 / 325,561 / (1,865) / (0.6%)
Case Weighted Discharges - Daypatients / 53,247 / 49,327 / 3,919 / 7.9%
Total Case Weighted Discharges / 376,942 / 374,888 / 2,054 / 0.5%
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 seven-month period ended 31January2008 resulted in a sector deficit of $7.1M that was $30.6M favourable to plan. Average Full Time Equivalents (FTE) year to date(YTD) continue to be below planned levels (0.7%), 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 seven-month period ended 31 January 2008 resulted in a net deficit of $7.1M that was $30.6M favourable to plan. / Yes/No
(b)noteagreesigninviterefercustomthat 20 DHBs had approved DAPs for the 2007/08 year as at 31 January 2008. / Yes/No
(c)highlight any paragraphs you do not want to be posted on the Ministry’s website. / Yes/No
(d)refernoteagreesigninvitecustom this report to the Minister of Finance for his information. / Yes/No

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Ref. No.: 20080320

John Hazeldine

Manager, Finance

Sector Accountability & Funding

MINISTER’S SIGNATURE:

DATE:

Ministry Contact 1: / Ministry Contact 2: / Ministry Contact 3:
Name: John Hazeldine
Phone: 04 496 2396
Cell: 027 271 3218 / Name: Bridget Hesketh
Phone: 04 496 2409 / Name: Graeme Rule
Phone: 04 496 2445
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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