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DEPARTMENT OF HEALTH
ERNST AND YOUNG - EFFICIENCY REVIEW

On Tuesday 4 August 2009 PSA Senior Industrial Officer Dolly Costello met with Dr Tony Sherbon Chief Executive Department of Health and Mr Etienne Scheepers Executive Director Workforce Development, and Mr John O'Connor Executive Director Finance and Administration.

In December 2008 the State Government announced a number of initiatives in the mid year budget review to address the impact of the global financial situation.

One of these initiatives was a shift in the profile of the State's Public Service from administration to front line service delivery.

In order to meet targeted efficiencies the Department of Health (DH) commissioned Ernst and Young to undertake a Core Business Review.

Ernst and Young have now delivered its report which finds that the current service split can be improved.

Ernst and Young has made three key recommendations:

  1. Immediate changes in Finance Division in central office with 14 full time equivalent (FTE) positions declared excess. This recommendation has been enacted as a flow on from FTE reductions announced in June 2009.

  2. The development of a new Finance and Workforce/Human Resource model across SA Health within three months.

  3. The implementation of specific performance improvement projects within Finance and Workforce/Human Resource, with a focus on making processes consistent, within 6 to 18 months.

SA Health will be consulting with staff on the recommendations and the process to implement changes for a period of two weeks until close of business 18 August 2009.

A project team will prepare and implement a detailed transition plan.

TVSP's may be offered to affected permanent staff but will only be determined closer to the time of positions being declared excess to requirement.

Human Resource Principles will be developed in consultation with the PSA to manage the process.

PSA has concerns about the changes. If fully implemented, could see considerable reduction of full-time equivalent positions.

PSA will be providing feedback on the review findings by close of business 18 August 2009.

Members are encouraged to forward their comment on the review recommendations to PSA Senior Industrial Officer Dolly Costello

Members can download the report from http://in.health.sa.gov.au/ernst-young-review.asp,

10 August 2009

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