The Southern District Health Board has promised to end its longstanding financial deficits in three years' time.
The district health board has lost more than $10 million a year since it was formed in the merger of the Otago and Southland DHBs in 2010.
Last year Health Minister Tony Ryall said the board had to turn its finances around, or the DHB could not expect government investment in major capital projects.
The board's latest annual plan shows it intends to reduce the deficit progressively over the next three years and be in surplus from 2016.
The Southern DHB has been restructuring, changed contracts and brought in accounting consultants to cut costs.
Tony Ryall. Photo: SUPPLIED
Mr Ryall has approved the proposal on the condition the DHB provides a full savings plan to the National Health Board by the end of next week.
Doubts raised
But a Southern District Health Board member says he doubts the DHB can end its persistent deficit in three years.
A member and former chairperson, Richard Thomson, says the board has been aiming for at least 13 years to stop making losses.
He said that it had been disheartening and demoralising to keep missing that goal, and it will be hard to succeed this time.
Mr Thomson said the deficits were holding back important hospital upgrades.
