Cost slashing for Wangaratta hospital

Source: Wangaratta Chronicle - 16 Jan 09

Extra money dries up so board forced to cut “non-essentials”

Written by SALLY EVANS.

NORTHEAST Health Wangaratta will tighten its belt for the remainder of the financial year as it attempts to rein in a multi-million dollar deficit.

The region’s major public hospital, which last year recorded a loss of $2.067 million, has been forced to slash "non-essential expenditure" after the Department of Human Services advised it would not meet the funding shortfall as it has done in the past.

NHW chief executive officer, Lis Wilson, said despite achieving saving targets, the service was still facing a tight budget.

"We have been fortunate to have had extra contributions from the Department of Human Services over the past five years to fund any shortfalls in operating costs and capital expenditure," she said.

"However, we have been advised that there will not be the same level of support available this year."

Ms Wilson said NHW would defer items for replacement such as motor vehicles and limit other unnecessary costs like conference leave and travel.

She assured the budgetary measures would not impact on hospital services such as elective surgery, or the redevelopment of the oncology unit which has been funded by community donations.

"It is imperative that we continue to provide the clinical services the community requires," she said.

NHW’s deficit for 2006/07 was $1.94 million and $1.88 million the previous financial year.

Ms Wilson hoped a financial review currently being undertaken by DHS would assist in closing the gap between funding levels and expenditure.