The Whanganui District Health Board has been notified that Otaihape Health Limited has entered into voluntarily liquidation.

Julie Patterson, Whanganui District Health Board Chief Executive, said today that she understood the trustees’ decision and acknowledged how difficult this is for all concerned.

“This decision will be very unsettling and disruptive for the residents and their families, staff and the whole community. Over the weekend we will be attempting to contact each of the resident’s families and offer them the opportunity to meet with us early next week. We also plan to hold a community meeting next week said Mrs Patterson.

“The overall responsibility for health services in Taihape sits with us and we have immediately commenced contingency planning. We have had assurance from the liquidator that staff will continue to provide care over the weekend.”

In August, the Board agreed to provide a support package, valued at close to half a million dollars to Otaihape Health Limited. The additional funding was conditional upon Otaihape Health continuing to reduce its costs and developing a flexible staffing arrangement to maximise efficiencies.

“There are a lot of challenges around operating health services in small rural communities due to diseconomies of scale. District health boards throughout New Zealand are faced with the same challenges when trying to retain rural services said Mrs Patterson.

“I really admire the courage of Otaihape Health in making this decision. Over the past few years the directors have put their hearts and souls into trying to make the business financially viable.”

Whanganui District Health Board will be able to provide further information next week after meeting with the liquidator.