Where to in Health?

August 8th, 2010

In Wellington we woke to the news on Friday that Ken Whelan, the Chief Executive of the Capital and Coast District Health Board had resigned. In his farewell email to staff Whelan said

there was no more room to cut the district health board’s costs, despite Government pressure to do so. “I cannot see where any more major efficiency can come from without negatively impacting on services.”

Even Sir John Anderson, the government’s appointment to Chair the Board has said that any further savings “would cut into muscle”.

I have had a bit to do with Ken over the last 18 months or so that I have been an MP, and I regard him very highly. He listened, he was honest, and had a very good grasp on what was happening within the DHB. When he sounds the warning he has made on his departure, the government should listen. The two areas where I have the biggest concerns in Wellington are mental health and public health where cuts are starting to have an impact. In Mental Health this will get worse with the closing of the two community clinics in the city and Kilbirnie set to cause significant disruption to service, despite the best efforts of the staff involved.

When we combine what is happening in Wellington, the public uprising over neurosurgery in Dunedin, the at least 80 cuts to frontline services elsewhere across the country, as highlighted by my colleague Ruth Dyson, and the fact we still do not have a Director-General of Health in place, questions have got to be asked about where Tony Ryall is taking Health. It is never going to be easy. Maintaining and developing health services with an ageing population, increased costs and understandable public desire for locally accessible services is a tough ask. But it needs leadership and it needs to get beyond glib answers in Parliament.

A place to start? Of Capital and Coast’s $47 million deficit, $37 million of it relates to the building of the regional hospital. A senior health professional I spoke to on Friday noted that other DHBs with financial issues are also in this state because of costs related to the buildings. A chunk of this is due to the capital charging regime. I think we need to re-look at the capital charging regime. Of course we want DHBs and other government entities to be efficient in their use of buildings and capital, but if it starts to mean cuts into core medical services, we have to question if the priorities are right?

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