Part charges for St John Ambulance will increase to $98 from August.

St John has been forced to increase its user charges for an ambulance trip to the hospital as it looks to turn around a $7.5 million deficit.

In August the cost for using a St John ambulance anywhere in the country will go up to $98 – an increase of $10.

That is in response to back-to-back deficits.

St John chief executive Peter Bradley said they reported an underlying deficit of $7.5 million for the 2014/15 financial year.

"We project another deficit for the 2015/16 year. The part charge increase will help return St John to a financially sustainable position."

The $98 represents about 16 per cent of the total cost of an ambulance callout. ACC still covers this charge in the case of accident injuries.

"As is the case for much of the health sector, St John faces the impacts of increasing demand, rising costs and an ageing population," Bradley said.

"This means that even though we've made significant advances in increasing income, reducing costs and modernising our service delivery methods, we require additional funding to simply stand still."

St John provides 90 per cent of emergency road ambulance services, covering all of New Zealand except Wellington and Wairarapa, which are covered by Wellington Free Ambulance.

The cost to St John for a typical ambulance callout is $615.

Palmerston North MP Iain Lees-Galloway sympathised with St John's position, accepting it would have no other choice than to pass on rising costs.

"I can understand why they need to do it... They have to get the money from somewhere – unfortunately, it comes from people using their service."

However, that meant people would now have to "balance their health against costs".

"It is one more cost people are going to have to face. It could be a deterrent to using an ambulance when they need it."

Grey Power Manawatu president Lew Findlay said older people were going to suffer.

"An older person can't afford that, simple as that.

"That is just making it harder for an older person to get to hospital."

Ministry of Health national services purchasing acting director Joy Cooper said the ministry approved St John's request to increase its part charge to help offset financial pressures.

Cooper said they were assured that St John would continue to provide care regardless of an individual's ability to pay.

"St John also had a supporter scheme that allowed individuals, couples, or households to be covered at a cost much less than that of the part charge."

Part charges were not always applied; maternity cases are free where an ambulance transfer is requested by a health professional.

Around 70 per cent of St John's operating costs are provided by the Ministry of Health, ACC and DHBs. The 30 per cent shortfall is covered from other income sources, including ambulance part charges, fundraising and commercial activities such as first aid training.

The Ministry of Health and ACC have jointly commissioned an independent review to provide recommendations on funding arrangements.

MidCentral DHB strategy, planning and performance general manager Craig Johnston said they were notified prior to the change.

"[St John] do a fantastic job in providing ambulance and other services to our community."