21 Jul 2010

Health trust close to insolvency

4:06 pm on 21 July 2010

A health service in Taihape is 10 days from declaring itself broke. Otaihape Health Trust has lost $1 million in two years.

A consultant recommends that Whanganui District Health Board reduce its rent by $150,000 and Otaihape Health reduce its management costs by $85,000.

Other cost-cutting recommendations are $200,000 from rest home wages, including a pay cut of 30% for about 20 nurses.

Otaihape Trust chairman Jock Stratton says employees have 10 days to agree.

The Nurses Organisation wants the Government to install a statutory manager.