FINANCING HOSPITAL COSTS

Chronicle (Levin), 6 February 1947, Page 8

FINANCING HOSPITAL COSTS

DUNEDIN, Feb. 5. Addressing the opening of the New Zealand Hospital- Boards' eonference this morning the Minister of Health (Mr. A. II. Nordmeyer) said the deci sion of the Government to lix the inaxi mum eost for the local hospital rata a0.5d in the £ eapital value, was con sidered by sonie as merely a reductiou of tlie permanent rate, but others appreciate that the decision was in . evitable. It meant a eliange in rela tions between the department and boards. Some people advocated thtabolition of the local rate while others realised that some local contribution was necessary lest local control be jeopardised. - The Minister of Finance had an nounced that the fixing of the maxi mum level wonld niean a stricter control of the boards' finances, but this dui not mean interference in domestic

affairs but merely that the Govermneii must see that expenditure was wisely incurred. The Government believed b would be necessary to fix a maximuui with regard to certain' expenditure forms, and if one board could operate efficiently at a certain rate, then u would be little justilication for another board oit'ering a similar serviee at a ,.r^t& i50 per cent; in excess of that. .The^'^hi^tdf ideclafiid the time hau come for the amalgamation oi' smalhu boards to ensure maximum efiiciencv. This would not mean lack of control of local institutions for there would be a group of men around each hospital to secure its welfare.