Expenses amounting to $27 million have been reduced by the Capital and Coast District Health Board. However, the board has not announced how it was able to save the flabbergasting amount. While releasing its new report, the board has stressed on the need of introducing more spending cuts in the organization.

The savings will definitely help the organization in reducing its current financial deficit, which amounts to $48 million. However, the amount will drastically reduce when the $27 million savings will be applied by the end of this financial year.

According to the annual plan, the savings have been accounted for in the board’s financial recovery plan. The board has further announced that it is currently $1-million ahead of its target of $27-million worth of spending cuts.

The spending cuts will account for a $17-million cut in the services of the hospital, apart from another $10-million cut on services for primary health care.

However, David Choat from the Capital and Coast District Health Board has opined that the decision to implement the cuts should be reverted. However, he has said that the Government was keen on sticking to the implemented cuts for district health boards.