Hospital Finance Discussed

Bay of Plenty Beacon, Volume 2, Issue 177, 24 June 1940, Page 5

Hospital Finance Discussed

COUNCIL AND BOARD CONFER -SOCIAL SECURITY TO BLAME FOR INCREASE At the invitation of the County Council the Bay of Plenty Hosj>ital Board met the Council in conference on Thursday afternoon to discuss aspects of the Board's financial position. The discussion covered all points - and ait the conclusion of the con ference, which lasted one hour, the County Councillors agreed that the Board's explanations had been of great assistance. The argument that the Social Security benefit scheme was to blame for the increase in patii ents and the corresponding in- - crease necessary in accommodation was advanced by several members of the Council. It wasi opinion of Mr J. L. Burnett, County Chairman, that the whole system of hospital administration and rating was wrong. The brunt, he said, should be borne by the Sociali ; Security Scheme; Messrs J. W. Sumner, Chairman, "F. J. Savage,, L. Buddie and Mrs W. A. McCracken, together with I Dr. E. Tews ley Dawson, Medical Superintendent, and Mr A. Bridgei", •acting-Secretary, represented the Hospital Board. Messrs A. F. Gougan and F. J. Burt acted in a •dual capacity as members of both "the Board and the County Council. In extending a welcome to the ■members of the Board, the County Chairman, Mr L. J. Burnett, said that the Council appreciated the opportunity of discussing mutual concerns. The suggestion of a conference was not a reflection on the Hospital Board but the ratepayers had been concerned about the increase in costs. Support for Board. Mr liurnett said that tlie increase in patients, and thus an increase in costs, could be traced to the ad"vent of Social Security. Naturally being .interested in hospital costs ;and administration we thought Ave should be able to discuss it, v said Mr Burnett, who added that though there had been an increase in the occupied bed rate classification of the hospital there had not been a •corresponding increment in the Gov ■ eminent subsidy. If the Social Security scheme was as good as had Ibeen stated by its sponsors, it should be able to stand on its own legs. It was the Council's endeavour to keep the rates down, continued the County Chairman, and it would be 'the Council's aim to support the Hospital Board at all times. The -Council had been able to reduce the County rates by %d in the £ but that reduction would not be of much use if an increase of the Hospital levy wiped out the advantageNo Surplus in Mr J. W. Sumner said he was rvery pleased to learn the reasons for the Council's request for, a conference. Personally he had been at ■a loss, seeing that there was no increase in the Hospital rates, and he began to think that there had been adverse criticism of the Board. Some comment, said Mr Sumner, may have been due to people reading that Auckland, owing to the introduction of the Social Security scheme, and directly resulting from that, had a surplus of £7000. People may have" been of the opinion that Whakatane had a similar credit balance. On the figures., he did not wonder that the larger institution had a surplus. It could not be expected in Whakatane. iVfr Sumner referred then to the Section of the Hospital Boards Act. which provides for payments between Hospital Boards for patients treated in other than their own district. He said that the Section quoted did not affect Auckland to any extent as few patients from there were treated in\other hospitals whereas any person going to the Auckland Hospital from Whakatane was billed to the local Board at 9s per day. The Bay of Plenty Board had allowed £1200 in the current year's estimates for this purpose. Substantial Increase. Procedure affecting the operations of the Board as applied to building extensions and kindred matters requiring the expenditure of large amounts was referred to by Mr Sumner, who said that the proposals were first examined by the 1* inane? Committee of the Board, then by the Board. From that stage they iwent

to the Department of Health for approval. This yea,r the estimates were based on an average of 55 occupied beds per days. This figure, in comparison with previous years, spoke for itself. Last year 51 was the average occupied bed rate per day. Before that it was 41. Before that again, it was 34. For April of this year the average per day was 58 and for May it had reach ed 68. The estimates provided for additions to tire Annexe and domestic quarters and incidentals, including a tennis court for the nurses. Mr Sumner detailed the difficulties occasioned by the shortage of accommodation at the Annexe and said that there was no alternative but to make the extensions. That accounted for most of the expenditure. Recreation for Nurses. As far as the domestics were concerned, some of tliem had had to be boarded out at night at a cost to the Board of 10s per week each. "You can see how economical that is," added Is'ir Sumner. Dealing with the question of a tennis court for the nursing staff, the Chairman said that one had been built some years ago by money subscribed. "If we can't provide recreation for our nurses, how are we going to keep them?"' asked Mr Sum ner. "They would have a long walk to the Borough and if they did walk, where can they find courts to accommodate them?" It was suggested that some of the patients treated at the hospital were not true hospital cases, but \v(pe merely taking advantage of the Social Security benefits. In replying to this, Mr L. Buddie said the Medical Superintendent had assured the Board that all patients were true hospital cases. Dr. Dawson expressed the opi'n-i ion that the country was becoming 'lrospital-minded' and that was the season for the increase. Further Extensions Probable. "The tremendous increase over the last few years makes me think that you will be faced with continued extensions," said Mr Burnett. "Has the Board any plan to cope with it?"' Mr Sumner said that for years the hospital had been run economically—too economically, and provis ion had not been made for all requirements. It Avas the present Board's policy to look ahead. The speaker said that while at the hos-' pital last Monday a doctor had telephoned to make arrangements for beds. He had to be informed that only one was available. Illustrating his points, Mr Sumner explained that the Nurses' Home had just been completed but accommodation provided there was not enough. The increase in staff following the increase in patients meant that nurses were now on every verandah and sor.Vi had to be boarded out. Mr Buddie mads the point clear that the Health Department would not permit the Board to build ahead of its immediate requirements. Thus the Board could not look ahead and plan for four or five years ini advance, as it desired. "If they won't agree there is something wrong," observed Mr Burnett. "A case of this sort calls for comprehensive planning for five or six years ahead. There is an alternative, of course, and that is for the Government to take over the lot." Burden on Property Owner. Mr McGougan thought there would not be the same increase iln future years, tree hospital treatment under the Social Security scheme probably accounted for a lot of cases and in future the An-, crease should be only normal. The same opinion was advanced by Mr Buddie, wiio said that though the Social Security scheme provided for free medical service as well, only the free hospital clause had so far been made effective. "We are only' wasting our time criticising the Board," said Mr C. T. Smith. "The Board is quite capable." Mr Smith then spoke of the Social Security Act, which, he said, had been introduced into the legislation of the country some years ago with the statement that its funds, which were to be used among other things for hospital (Continued foot next column).