The Board has today unanimously agreed to give the services at Taihape a second chance by providing a support package valued at close to half a million dollars to Otaihape Health Limited.

Board Chair Kate Joblin is delighted with the outcome.

“The priority for the Board has always been to retain the services in the district and we have decided to accept the financial recovery plan, but with conditions. I am pleased with the decision, but at the same time recognise the extra pressure this puts on the district health board’s budget”

Mrs Joblin advised that the funding is conditional upon Otaihape Health continuing to reduce its costs and developing a flexible staffing arrangement to maximise efficiencies. 

“Otaihape need to deal to some of their costs, particularly in the aged care service, because the Board is still not satisfied they benchmark well with similar services across New Zealand and may not be financially viable into the future.  We will be monitoring improvement very closely and continuing funding will be dependent upon progress against these conditions”.

In addition to financial assistance, the DHB will also be providing ‘in kind’ support for Otaihape Health with nursing leadership and development and have also agreed to write off rent arrears in excess of $400,000.

The Board appreciated the extent of the community interest and their commitment to supporting Otaihape Health to move forward.