SOCIAL SECURITY AND HOSPITALS

Waikato Times, Volume 124, Issue 20727, 10 February 1939, Page 4

SOCIAL SECURITY AND HOSPITALS

That the social security legislation means a considerable upheaval in the New Zealand hospital system was made evident by the discussions at the conference of the Hospital Boards’. Association at New Plymouth. The Hon. P. Fraser, who will administer the medical side of the scheme, indicated that the operation of the plan should result in an improvement in the finance of the boards, but there are still so many uncertainties that it is impossible yet for the boards to proceed on a definite basis. Increased payments for treatment at the hospitals may be more than offset by the extra costs involved by social security.

At the present time there is a shortage of beds estimated by the Minister at 1000 and by the president of the association at 1500. The Minister himself admits that the social security scheme may result in increased demands upon the boards, so that by the time the scheme is in full operation the demands for additional accommodation may involve the boards in heavy expenditure. There is also a serious shortage of nurses to contend with, and this difficulty is likely to be accentuated.

Discussing the agitation to secure a much greater contribution to the cost of hospital administration from the Government, the president of the association repeated the warning that without local financial responsibility there would be no local control. That is an aspect of the New Zealand hospital system that will attract increasing attention as the social security scheme develops. It is not improbable that before many months have passed the Government will be bearing an increased proportion of the financial cost, and with that responsibility will go the power of control. Hospital boards will need to make a decision whether it is in the interests of the hospitals and of the ratepayers of the constituent districts that the State should take complete control and spread the cost evenly over the whole country. It is very unlikely that that method would relieve the ratepayers of any part of their burden; more probably the result would be the reverse, and in addition the value of local interest and control would be lost.