The 2016 NSW Auditor-General’s report into NSW Health, released on Thursday, revealed that the district had spent $878 million in 2015-16, while its revenue was only $836 million.

Expenses grew by more than nine per cent over the financial year; while government funding dropped by $36 million.

Employee costs made up the bulk of expenses at almost $580 million. These included a medical radiographer who was the state’s second highest overtime earner – receiving more than $188,000 in overtime on top of a base salary of $84,000.

Wollongong MP Paul Scully labelled the report ‘’shocking’’, claiming the NSW Government was ‘’short-changing’’ the region on health funding.

‘’It confirms that health services in the region’s hospitals are under enormous pressure,’’ he said. ‘’The caring, dedicated and professional medical and nursing staff in the Illawarra are doing the best they can but their efforts to care for us are being undermined by the Baird Liberal Government.’’

ISLHD chief executive Margot Mains said the district faced an ongoing challenge of meeting growing, and diverse, community needs within the ‘’realities of allocated budgets’’.

‘’Our hospitals are seeing and treating more patients than ever before. We are performing more surgeries, seeing more clients in outpatient and community settings and have our largest workforce to date providing millions of services each year,’’ she said.

Ms Mains said the district’s financial position had been impacted by increased recurrent costs from the expanded Wollongong Hospital – in particular, the Illawarra Elective Surgical Services Centre which was built to cater for future demand. It was also affected by the cost of fewer patients electing to use their private health insurance in the region’s public hospitals.

She said the district was working closely with the Ministry of Health to address the issues highlighted.

‘’We have made significant investments to strengthen our clinical leadership and workforce,’’ she said.

‘’We will see long-term benefit from this current spend and it will ultimately reduce the heavy costs associated with contract staff in our emergency departments, for example.’’

Meantime the report also noted that the ISLHD was one of six health districts which failed to meet the state benchmark of having 71 per cent of patients leave its hospitals’ emergency departments within four hours.

Bed occupancy rate was also above the state average, with the report noting that could lead to increased wait times at EDs and increased cancellations of elective surgery.

Ms Mains added: ‘’Another key focus for the (district) is working to improve access and flow from our emergency departments, to our wards and right through the hospital system to ensure patients get the right care, in the right place at the right time. This has also required a significant level of investment.’’