District Health Boards support the Government's commitment to limit bureaucracy to the minimum, to help reduce large deficits.
Health Minister Tony Ryall has warned of a major blowout in district health board deficits this year, telling DHB chiefs the latest estimates show board deficits will reach more than $150 million this financial year.
He said finances in the health sector are a lot worse than the former Labour government let on before November's general election.
Mr Ryall told Morning Report on Wednesday he expects the number of administrators to fall over time to help control the deficits, though it is not a slash and burn exercise.
DHB view
The head of the committee of DHB chairs, Peter Glensor, said a cap may not be the only way to better achieve a more efficient service.
"It will be up to the CEOs who run the organisations to decide the mechanism but I can absolutely assure you that we support the minister's desire to keep bureaucracy to the very barest minimum."
Mr Glensor says the boards' bureauracy would be more efficient if the Government was clear on the purpose of the information it required from the boards.
Deficits worsening
Mr Ryall told the DHB heads at a private meeting in Wellington on Monday that more than half of the country's 21 district health boards face deficits, many of them worsening, with Wellington's Capital and Coast in the most serious situation.
He said total deficits for this financial year have deepened by more than 40%, from the planned level of $111 million.
In notes released on Tuesday, Mr Ryall says it is a serious deterioration and next year could be worse. DHBs will have to cut back on bureaucracy and make savings in order to lift frontline services.
Mr Ryall says there is also a major shortfall in funding for new hospital wards and other capital projects.
DHBs have asked for $435 million worth of capital spending for a range of projects this year, but there is only $182 million available, he says.
Mr Ryall says the National-led Government is committed to planned spending increases in health, but productivity and accountability must improve.
