Public-health costs ‘must be reduced’

Press, 18 April 1979, Page 2

Public-health costs ‘must be reduced’

The New Zealand health! ! system faced a bleak future! if spending on public hospi-j tals was not reduced, it was; suggested in Christchurch yesterday. The general manager of, the Southern Cross Medical Care Society (Mr P. A. Smith) said staff numbers might have to be reduced, and some hospital projects j suspended, to curb increasing costs. New and extended public ; hospital services were being : introduced throughout New < Zealand. The capital costs of these were “astronomical! enough,” but-it was the-run-h ning costs which could bel crippling in the years ahead,!

[he told the. Christchurch! [Rotary Club. ■ New Zealand spent 71 per', I cent of public health funds. ion hospital services, Mr Smith said, and he ques-| tioned whether the nation!] could continue to afford this. New hospitals or extensions would cost as much in three years to run as they 1 had cost to build, the Health 1 Department had forecast. , It was not just a matter of trimming hospital expenditure, but of ensuring! l the best use was made of! 1 every dollar spent on health. | Calls for more commun- ■ lity-health projects had to be[ s [matched by action on “vast] and expensive hospitals. Andi] I that's not to mention the t

| huge nurses’ homes, many of | which are scandalously empty.” . " , i In the next year it would! cost each family about $lOOOl | in taxes to pay for the public health service. “That. $lOOO is only for providing the services, not the new buildings — and it does not include ''health-care costs you do pay, such as doctors, bills and privatehospital fees ” The question was howl pong the tax-payer could i continue to finance the pub- ■ lie health system, which 1 seemed to grow without restraint. I The nation needed both public and private health divisions, .said Mr Smith.