DAP 2009/10 Final 1 - Taranaki District Health Board

DAP 2009/10 Finalc. the possibility of having to change or re-align service configurations inits hospital service operations to manage the gap and other potentialrisksd. the financial recovery plan for its hospital provider operations beinglargely dependent on the redevelopment of the hospital facilitiese. its Funder operations having to significantly reduce investment inadditional services, besides carrying financial risks, andf. its consolidated residual financial exposure (besides the hospitalprovider operating deficit) being circa $2.20M for the planning period2009/10, the overall exposure being around $3.30MRecognising that additional risks continue to be carried both within and outsidethe financial budget, Taranaki District Health Board’s financial risk assessment ofthe current District Annual Plan is potentially “medium to high risk” under theassumptions and risks as stated.7.2 Key Financial Risks7.2.1 Taranaki DHB’s Funder1. Taranaki DHB will receive an increase in funding of 4.37% for 2009/10, whichis the minimum set for all DHB’s. (The maximum level of increase for DHBs isset at 7%.) This increase comprises an inflationary rise (forecast fundingtrack), demographic funding of 1.678% and additional revenue as acontribution to ensure that Government commitments are met.2. Taranaki DHB will receive transitional funding in 2009/10 as population shareof minimum set for all DHB’s. (The maximum level of increase for DHBs isset at 7%.) funding is lower than historical funding share. Transitionalfunding was calculated at the funding necessary to take the new PBFF shareto the historical funding level plus an increase to cover cost growth. This wasthen reduced by 1% in line with other “larger’ DHBs to provide an incentive forthe DHB to move costs towards the PBFF share.3. The Taranaki DHB share of population based funding has fallen from 2.8% in2008/09 to 2.76% in 2009/10. Current Ministry calculations project this todecline further to 2.75% in 2010/11 and 2.73% in 2011/12. However futurechanges to the PBFF could significantly increase the rate of decline inpopulation based funding, as is the case for 2009/10.4. Overall the funding envelope shows an increase of $11.43 million over theDecember 2008 baseline. The increase includes $7.9 million FFT, $3.2million funding to advance Government priorities and $18,678 demographicgrowth.5. Other than FFT, Taranaki DHBs entire increase in funding for 2009/10 isrequired to be invested in advancing five Government priorities. These are:a. Expanding the availability of subsidised medicinesb. Improving the quality of supervision and nursing in rest homesc. Devolution of services to primary cared. Dedicated respite-care bedse. Post-natal stays46