Southern District Health Board
Dunedin Hospital
201 Great King Street
Private Bag 1921
DUNEDIN 9054
Chief Executive Officer
Phone 03-476 9456 Fax 03-476 9450
21 March 2019
Ms Marie Daly
NZ Rural Hospital Network Executive Committee
Email:
[FYI request #9753 email] Dear Ms Daly
Official Information Act Request
I refer to your Official Information Act request received 5 March 2019 in which you specifically
requested the following:
Q1.
For each of the past three years ending June 2016, June 2017 and June 2018 what was
the DHBs Rural Adjuster funding component of the PBFF funding pool?
As advised by email on 7 March 2019, the information for this question is held by the
Ministry of Health and has been transferred to them.
Q2.
Does the DHB fund and provide rural hospital services? If yes, continue to answer
questions 2.1, 2.2 and 2.3. If no, go to question 3
Yes
2.1
Provide the following information about the rural hospitals in your DHB. If there are
none, please report this.
Name or location of hospital
List of services the hospital provides
The business structure of the hospital eg DHB owned and operated / NGO or
Iwi owned and operated
Annual Budget
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Please see the table below:
2.2
How is the annual budget for each of the rural hospitals listed in the table in 2.1 set?
With the exception of Lakes Hospital in Queenstown, all of the rural hospitals described
above are under contract to the Southern DHB. The value of these contracts is subject to
a negotiation process based on standard health sector purchase units and service
specifications. The rural hospitals in the table above are, for the main part, subject to
multi year agreements with the Southern DHB. The overall value of the agreement is
reviewed annually and we usually provide a cost pressure adjustment to the rural
hospitals.
The budget for Lakes Hospital is set as part of the DHB’s own budgeting process that it
uses for its own facilities.
2.3
How does the DHB apply the annual rural adjuster funding to the benefit of each of
the rural hospitals listed in the table in question 2.1?
The rural adjuster is part of the DHB’s overall population based funding envelope and it
is applied as part of the general pool of funding available. Southern DHB spends
approximately $44m funding services in the organisations described specifically in this
response. In addition to this investment rural adjuster funding is nominally used for
payments to rural General Practice, the cost of inter hospital transfers and the cost of
travel and accommodation for patients travelling from rural areas to base hospitals.
Q3.
Does the DHB fund and provide rural community services? If yes, continue to answer
questions 3.1, 3.2 and 3.3. If no, go to question 3
Yes
3.1 Provide the following information about the rural community services in your DHB. If
there are none, please report this.
Location of services
List of Community services in each location
The business structure of the service provider eg DHB owned and operated /
NGO or Iwi owned and operated
2
Annual Budget
Please see the table below:
3.2 How is the annual budget for the community services listed in the table in 3.1 set?
As per the response for 2.2 above. All of these organisations are under contract to the
Southern DHB.
3.3 How does the DHB apply the annual rural adjuster funding to the benefit of each of
the rural community listed in the table in question 3.1?
Response as per 2.3.
Q4.
For each of the past three years, under each of the components of the Rural Adjuster,
quantify the allocation of Rural Adjuster funding through the DHBs contracts with its
contracted providers or Service Level Alliance Teams.
Small hospital facilities
Community services
Offshore Islands
Travel and Accommodation
Inter hospital transfers
Governance
Rural GP/PHO payments
We do not receive our rural adjuster funding from the Ministry of Health (MoH) broken
down into these sub categories, it is added to our population based funding envelope
but not specifically identified as a discrete amount. Consequently, we do not try to
retrospectively fit these arbitrary categories to our funding arrangements with local rural
hospitals and rural trusts. This issue of transparency (or lack thereof) was highlighted in
the MoH commissioned report by Sapere entitled “a Review of the Rural and Tertiary
Adjusters” March 2015.
Q5.
i. Does the DHB include reporting requirements specific to the use of rural adjuster funding
in its contracts with service providers whose contract includes rural adjuster funding?
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No.
ii. If yes, provide a list of the reporting requirements included in the DHB contracts with
these providers.
You have the right to seek an investigation and review of our decision by the Ombudsman. The
Ombudsman's Office can be contacted on 0800 802 602 or on-line at
http://www.ombudsman.parliament.nz/. Yours sincerely
Chris Fleming
Chief Executive Officer
Ref: 1717
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