Summary
The stage one financial review finds that Canterbury DHB is in a relatively stable financial position following the earthquakes.
The review notes the effective way in which the DHB has used its resources to minimise the full impacts of the earthquakes. It also acknowledges the earthquakes will continue to impact the DHB, including changes in service demand and the financial consequences of $380 million of insurance repairs that were not entirely anticipated when the Detailed Business Case for the redevelopment was completed in 2012.
The review sets out four recommendations including re-validating current deficit forecasts, remodelling revenue and expenditure assumptions underpinning the 2012 Detailed Business Case for redevelopment of Christchurch Hospital, and working with the DHB to return it to a breakeven financial position.
The stage two report is expected to be completed in early 2016.