Review of the population based funding formula completed
Ministry of Health news article
22 December 2015
A five yearly review of the population based funding formula (PBFF) for district health boards (DHBs) has been completed and will be incorporated into DHB’s 2016/17 Funding Advice.
The funding formula is a technical tool used to help equitably distribute the bulk of district health board funding according to the needs of each DHB’s population. The formula takes into account the number of people who live in each DHB catchment, their age, socio-economic status, ethnicity, and sex. It also has mechanisms to compensate DHBs who service rural communities and areas of high deprivation.
The funding covers a range of health services including primary care, hospital and community care, health of older people, and mental health.
The review recommended no structural changes to the overall model but proposed several changes, including to the rural adjuster to better reflect DHB population and geography.
In 2015/16 the PBFF distributed a total of $11.4 billion to DHBs. DHBs will not receive less funding as a result of the review.
█ Population-based funding formula Link
The embattled board – whose members were dismissed this year over a persistent deficit – will not get any extra cash (apart from deficit support) until the changes take effect next July.
### ODT Online Wed, 23 Dec 2015
Review helps SDHB a little
By Eileen Goodwin
A review of the health funding model has revealed what many long suspected – the Southern District Health Board is not receiving its fair share of health dollars. A Cabinet paper on the Ministry of Health review was released yesterday. […] The formula is essentially a head count with adjustments for demographics, deprivation, and other factors.
All up, 561 employees received more than $100,000, compared with 521 last year – 413 were in medical or dental roles.
### ODT Online Tue, 22 Dec 2015
Doubling of DHB staff on $400,000+
By Eileen Goodwin
The number of Southern District Health Board staff earning over $400,000 more than doubled in the last financial year, the board’s annual report shows. The 2014-15 report shows 13 staff received more than $400,000, compared with six the previous year. Chief executive Carole Heatly has been overtaken in the pay stakes by two employees earning $520,000-$530,000.
The numbers: (via ODT)
561 staff earning $100,000 or more
13 staff earning more than $400,000
2 staff earning $520,000 to $530,000
10.7 executive management staff earning almost $2.8 million
$357,000 board members’ fees
Source: Southern District Health Board annual report
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