Hospital Revenue Increases

Hospital Revenue Increases

Provisional results for the year ended 30 June 2003 show that the revenue of the hospital and health service (HHS) providers function of the district health boards was $4,090.3 million, a rise of $280.9 million or 7.4 percent compared with the June 2002 year, according to Statistics New Zealand.

Over the same period, total operating expenditure increased $253.1 million to reach $4,282.7 million. As a result, there was a decrease in the operating deficit of the HHS providers, down to $192.4 million, compared with the deficit of $220.2 million recorded in the June 2002 year.

Nineteen of New Zealand's 21 district health boards have reported operating deficits for the June 2003 year.

Funding from district health boards, combined with other Government funding, accounted for 92.8 percent of total income in the latest June year. Revenue from these sources increased 7.7 percent to reach $3,795.1 million during the year to June 2003. Medical charges and all other income rose 3.0 percent to $295.2 million over the same period.

Increased costs of direct medical supplies and all other expenses contributed $96.3 million of the $253.1 million rise in total operating expenditure. However, rising employee costs were the main source of the increase, rising 6.2 percent or $152.3 million to reach $2,623.6 million.

Total shareholder's equity in the district health boards increased $352.5 million to $1,219.1 million at the end of the June 2003 year. Asset revaluations were the principle reason for the increase in equity. The revaluations were part of the regular review process carried out every three years by the district health boards.

For the June 2003 quarter, HHS providers recorded a combined operating deficit of $63.7 million, compared with the $35.5 million deficit recorded in the March 2003 quarter.

Brian Pink

Government Statistician

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