News Flash

The State Treasurer, the Hon Kevin Foley MP, handed down the 2010 – 2011 Budget on Thursday 16th of September 2010 and a further SA Health briefing was delivered by Dr Tony Sherbon on Friday 17th September 2010 to the relevant unions.

The statewide impact of the budget has been detailed in a separate Brief to PSA members.

This Brief deals with the implications for members and the community for public health pending a more detailed analysis.

2010 – 2011 Budget – Savings and Other Budget Improvement Measures across Health are:

SA Health has been allocated savings requirements of $316.0 millions over four years which is in addition to savings targets approved as part of prior year state budgets.  SA Health is also required to achieve specific budget improvement measures primarily focusing on realising revenue opportunities of $33.8 million over four years.

SA Health job cuts around 950 FTE's over 4 years.

A reduction of around 14 Executive Employees across the Health portfolios, including SA Ambulance Service, a savings of $5.9 million over 2 years.
TVSP's will be targeted.

OUTSOURCING OF CLINICAL SERVICES - $22.8 million in 2010-11 the savings and other improvement measures approved are:

Outpatient Services reduction by 10% of $10.9 million ($76.1 million over four years 2010-11 to 2013-14).  SA Health planning to transfer clinics/appointments to Private Specialist Rooms.   There is no guarantee that Health Card Holders will not have to pay a gap in fees, between the Medicare rate and the Specialists fee.  A consultation process by way of a Reference Group will be setup to shortly.

Mental Health Community Recovery Centres (CRC's) – The 3 CRC's that were purpose built and Public Sector managed now to be outsourced to Non Government Organisations in 2012.

'FIRE SALE' OF ASSETS/CUT IN SUBSIDIES

Car Parking - $5.2 million additional revenue ($16.8 million over 2 years 2011-12) through standardisation of car parking fees at metropolitan hospitals at commercial rates.  This includes charging staff where currently no fees are charged (eg Modbury, Glenside and Repatriation General Hospitals) and also charging the public a proposed fee of $13 per day at all sites (excluding Royal Adelaide Hospital, which is administered by an external provider).  All metropolitan Car Parks owned by SA Health will eventually be sold.
MedVet Operations to be sold – This is a company owned by Adelaide Health Service that has its own Board.  This could have some affect on Research Revenue.

Leasing of vacant accommodation - Reviewing leasing arrangements of hospital retail outlets in order to raise an additional $16 million over 3 years.
Private Hospital(Community Hospitals) Subsidies to be reduced to Moonta, Ardrossan, Keith and Glenelg Hospitals.  This may see these hospitals closing in the future.

CONSOLIDATION OF SERVICES

Consolidation of Pharmacy, Medical Imaging, Medical Equipment Sterilisation and Biomedical Engineering Services – in line with recent supply chain reform in a similar model to SA Pathology.  The PSA will be part of the consultation processes as these are set up for each area.  Target savings over 3 years commencing in 2011-12 are:

Pharmacy Services - $30.7 million
Medical Imaging Services - $30.7 million
Sterilisation of Medical Equipment - $2.8 million
Adelaide Health Service Regional Structure and Consolidation of Corporate Services - $6.5 million (76.1 million over 4 years 2010-11 to 2013-14). Supposedly reducing duplication and improve efficiencies.  The PSA continues to be involved in the consultative processes and will keep members informed of the progress.
Efficient Price Reforms across metropolitan public hospitals, which is a saving of $118.1 million over 3 years.

The PSA is continuing to examine the budget papers as they relate to SA Health.

PSA members are encouraged to provide feedback/information regarding budget cut implications, particularly how South Australian families and the community will be affected.