The stage two financial review looked at the impact of close to $1 billion of new hospital facilities on Canterbury DHB’s future financial performance. It found that depreciation and capital charges for new facilities including Burwood, the Acute Services Building and the Outpatients facility are significant drivers behind growing deficits.
PricewaterhouseCoopers forecasts that if no changes are made, Canterbury DHB will have deficits of $38.5 million in 2016/17, $46 million in 2021, and $37 million in 2025.
The review recommends a mix of solutions to help the DHB improve its financial sustainability. This includes tighter financial management of key operating costs, reducing the depreciation rate, leasing rather that owning some of their facilities, and reviewing their future facilities building plan.
The report follows Canterbury District Health Board: Stage One Financial Review, released in November 2015.