HOSPITAL FINANCE

Wairarapa Times-Age, 22 July 1943, Page 2

HOSPITAL FINANCE

COMPLEX SYSTEM BAFFLES BOARD MEMBER RECENT SOCIAL SECURITY PAYMENT. DISTRIBUTION OF INCREASE. The difficulty which was experienced by the layman in understanding how the hospital levy and subsidy was arrived at was mentioned by Mr J. A. McLeod at yesterday's meeting of the Wairarapa Hospital Board. He said he had been asked to explain how the Government subsidy, etc., was arrived at, but he was unable to do so. “The man in the street thinks we get the extra 3s a day from Social Security for hospital benefits,” said Mr A. Forsberg. The Managing-Secretary, Mr Norman Lee, said the 3s increase was on gross revenue. To get the net increase the 3s had to be divided between the local body levy and the fluctuating Government subsidy. The board received Is 2d of the increase while the Government received Is lOd. Mr H. H. Mawley, chairman, said it had been well said at a meeting of the Masterton County Council that the Government was transferring money from one pocket to another. Mr J. F. Thompson: “The Government takes its share in the course of the transfer.” “If a private person did that it would be called theft,” observed Mr McLeod. Mr Thompson: “Absorption is the word." Mr Lee said that at a hospital board conference covering the area from Auckland to the Bluff members had expressed ignorance of the levy and subsidy system. “Is there a country in the world with such a complicated system of hos-' pital rating?” asked Mr Thompson. Mi’ Lee said the system, only so far as hospital administration was concerned was the best in the world. In the British Commonwealth practically all the hospitals had big overdrafts. In England the voluntary subscriptions hospitals were always in debt. In Australia the State guaranteed the interest on hospital overdrafts. In New Zealand the boards could balance their budgets and were not faced with financial worries. Mr H. Thomas said they growled about the high valuation in the Wairarapa, but in view of its sheep and cattle carrying capacity the district was not over-valued. Mr Thompson said the incidence of payment was inequitable and out of date. Mrs S. Fletcher said she wished to cdrrect a statement made by Mr Lee. The Melbourne Women’s Hospital, run entirely by women for women, had no overdraft. She was speaking of the position a year or so ago. “That shows the superiority and wisdom of the gentler sex,” observed Mr W. B. Martin. The matter then lapsed.