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Productivity in Auck hospitals falls despite extra

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Mon Feb 26 2007 13:00:00 GMT+1300 (New Zealand Daylight Time)

Productivity in Auck hospitals falls despite extra

Monday, 26 February 2007, 8:58 am
Press Release: New Zealand National Party

Hon Tony Ryall MP
National Party Health Spokesman

26 February 2007

Productivity in Auck hospitals falls despite extra cash

A previously secret report shows hospital productivity in Greater Auckland has fallen despite the Government’s massive funding boosts, says National Party Health spokesman Tony Ryall.

Auckland health bosses have been told it is taking almost three dollars of extra spending to get one dollar's worth of extra benefit at the region's hospitals. The analysis prepared for the three Auckland DHBs found that a 13% spending rise between 2003-04 and 2005-06 had lifted hospital output by only 3.9%.

Mr Ryall, who obtained the reports under the Official Information Act, says a greater focus on value for money at the DHBs would release millions of dollars for extra operations and life-saving drugs.

"Our doctors and nurses are being stifled by endless bureaucracy, and it's the patients who are missing out," he says.

Ten days ago Treasury documents warned performance in New Zealand's hospitals had plummeted, with productivity in constant decline. Both Treasury and the Ministry of Health have warned that despite funding increases, there are relatively more staff and less work being undertaken at DHB hospitals.

Marked "Not for wider circulation", this latest series of three productivity analyses on the Auckland DHBs have been seen only by top health bosses and DHB chairs.

“The report's author, leading health consultant Andrew Gaudin, says different levels of performance between the three Auckland DHBs is costing more than $35 million a year.

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Mr Gaudin notes: ‘This potential increases significantly with maximum "best of best" productivity... it provides a compelling case for further action’.

Mr Ryall notes that $35 million would pay for the breast cancer drug Herceptin or 3,500 hip replacements.

The reports says ‘potential improvement opportunities exist for all three DHBs" and recommends that DHBs work closely with doctors and managers to make this happen.

The report particularly targets Waitemata DHB, suggesting $16 million worth of benefits across both North Shore and Waitakere hospitals from improved performance. It points the finger at Auckland DHB and $13 million of potential improvements in performance. Counties Manukau appeared to be the best performing DHB in the region.

"These reports support exactly what National has been saying for years,” says Mr Ryall.

"The country has put $4 billion extra into health and is not getting much extra in return. In fact, it is harder to get an operation and tens of thousands of sick people have been data-cleansed from waiting lists.

"A more focused approach would see smart use of the private sector to make maximum use of available resources, greater involvement of specialists in decision-making, a stronger role for GPs and family health teams, and actually holding highly-paid hospital managers to account.

"These are all policies Labour is incapable of progressing."

Ends

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