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provision for the treatment of the borderland patient is not made. The admission of such patients tends to keep away the ordinary psycho-neurotic, and also a bad effect on such patients as are under treatment. During the year I have had no complaints from the patients in respect to treatment nor to the general conditions appertaining in the hospital. Female Hospital.—There has also been a tendency to seek admission from the psychotic female patient, and some distress has been caused by the refusal to admit the obviously unsuitable borderland case to the Institution. Both hospitals have served the useful purpose of dealing with the sick of the village and the district. There has been a considerable amount of out-patient treatment carried out by the Medical Officers. Medical Staff. —Following the resignation of Dr. Alcock on the grounds of ill health, some difficulty was experienced in obtaining a suitable successor. Dr. Collier and Dr. MacNaughton acted as locum, tenens during the year, and eventually Dr. Moller was appointed as Medical Officer. Dr. Moller has a special knowledge of neurology, and his ability will prove a great asset to the Institution. Nursing Staff. —There have been considerable changes in the nursing staff, especially among the junior sisters. It seems unlikely that the junior sisters can be retained for more than about six months to one year in the institution. I hope that with the improvements in the living-conditions at the Nurses' Home the present difficulties will cease. Massage Department.—With the increasing number of patients in the women's hospital and the number of out-patients desiring treatment in the department, it was found necessary to increase the number of masseuses from three to four. Male Staff. —There have been very few changes in the male staff, and every endeavour has been made to keep the staff at an absolute minimum. The fact that the institution has to maintain outside services tends to increase the number of men employed. The hospital is being particularly well served by the office staff. Farm. —The new farm buildings completed last year proved very satisfactory. The supply of milk has been adequate. In spite of the increase in the number of patients under treatment, the farm has been able to supply us with sufficient quantity of milk throughout the year. Some 30 acres of new land has been broken in, and during the next year it is hoped to complete clearing such land as is at present under broom and manuka. The farm has been visited at regular intervals by Mr. Bruce, Agricultural Adviser to the Department. We are much indebted to him for his helpful advice. Tea-kiosk.—The tea-kiosk serves a very definite and useful purpose to the public, and during the last year it has been self-supporting. Bathhouses. —The bathhouses and swimming-pools still continue to be popular with the public. Electrical Supply. —There has been some difficulty during the past year with the electrical supply owing to the change-over from 110 to 230 voltage. The new power-house has been erected, and the change-over was made in September. In spite of the installation of an extra machine, the amount of power is extremely limited. This is due to the lack of water-power. According to the arrangements made, power has been supplied to certain houses in the village, but I can foresee no possibility of any extension in this direction. It will be a very serious problem when the new Nurses' Home is completed as to how much power is going to be available for the building. At present all the available power developed is used by the institution, and by such houses as are connected. Gardens.—The public grounds and the hospital gardens have been carefully attended, and are in a fairly satisfactory state. The institution has been moderately well supplied with vegetables. General Maintenance. —The general maintenance of the hospital has been carried out, and the buildings are in a good state of repair. New Work in Progress.—The central steam system has been commenced, and will in all probability be completed by the end of the winter. Should the steam system prove successful, it will be a very considerable economy both in labour and in firing. Arrangements have been made and machinery is on the ground for the alterations in the laundry, and this should prove a very great assistance, as the present machinery is worn out and utterly inadequate for the work required. Nurses' Home. —Plans have been completed, and I have every hope that the building will be finished within a year. This, at the present moment, is undoubtedly our most urgent requirement. Proposed New Work. —Last year a new lavatory block was attached to one of the wards, and it is verj r essential that a second lavatory block be renovated and thoroughly refitted. General. —During the year an extra number of single rooms has been made available in an endeavour to meet the demand for better accommodation. The provision of private rooms at an increased fee has proved quite satisfactory. The treatment provided is identical for all patients in hospital, whether they be in wards or in a private room, the only difference being in service and accommodation. No difficulty has been experienced in this matter, nor has there been noticed any " class " distinction. In an institution such as this, where all the patients come in contact with each other, it would have been very obvious should such a difficulty have arisen. It is found that patients of both so-called " classes " intermingle, and no distinction is perceptible. Nor do I find the slightest desire or tendency on the part of the nursing staff to fa vour one " class " to the detriment of the other. From a financial point of view the scheme is satisfactory. It provides for people who desire more privacy thah is obtainable in the wards, and also provides for those who are in a position to well afford the increased cost. I desire to express to you my appreciation of the help and support I have received from the senior staff of the hospital. The smooth running of the institution is undoubtedly due to this all-important factor, and the hospital is indebted to these officers for their help and assistance. I beg to thank the Hon. the Minister and yourself for your kindness and help during the year.

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