Page 3065 - Week 14 - Tuesday, 5 December 1989

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 Contracting out is not considered appropriate for the public hospital system since it leaves the system vulnerable.

(3) Estimates indicate that with cook/chill methods of operation longer term savings could be in the order of $1.7m per annum, but in the transition phase would be around $650,000. However, other impacts need to be assessed in the review now under way.

(4) The $9.43 is the estimated overall average cost of all meals prepared, including special diets. However the distribution costs vary depending on where the meal is provided. Distribution costs are far higher for inpatient meals than for example, say cafeteria meals.

(5) The Minister has not failed to act on any issue, particularly the area of food services. Savings were identified in the budget process and a review of food services is already under way.

Hospital Services
(Question No. 46)

Mr Humphries asked the Minister for Community Services and Health, upon notice, on 15 November 1989:

 In relation to labour costs in Canberra Hospital are (a) labour costs of medical salaries some 6.5 per cent above the Australian average, (b) nursing costs more than 31 per cent above average, (c) administration costs 89.5 per cent above average; and (d) domestic services 21 per cent above average.

Mr Berry: The answer to Mr Humphries' question is as follows:

I presume that the ratios quoted derive from the publication "Hospital Costs and Utilisation Study" by the Australian Institute of Health. The values referred to are then "averages", not "standard" levels.

The ratios referred to in that publication are for 1985-86 and compare the ACT's type 2 public hospitals, that is, Royal Canberra and Woden Valley Hospitals, against type 2 Australian metropolitan hospitals. As I am sure members will realise hospital staffing ratios and costs are directly related to their size and functions.

My Department believes this comparison is inappropriate given the range of specialists and the more complex cases treated in our two major ACT public hospitals. Our hospitals also have an important additional regional referral role.

It is considered that ACT's two major public hospitals would be more appropriately compared against type 1


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