Page 6332 - Week 19 - Tuesday, 17 December 1991

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MINISTER FOR HEALTH

LEGISLATIVE ASSEMBLY QUESTION

QUESTION 593

Wheels Service

Mr Humphries - asked the Minister for Health:

1. Do public hospitals in the Territory prepare for the Meals-on-Wheels service?

2. If so, what financial arrangements are in place to cover the cost of providing these meals?

3. Is it the case that the charge for a meal provided by Meals-on-Wheels has increased from $2.50 to $3.00?

4. Has the increase resulted from additional charges applied by the hospitals; if not, what is the cause of this cost increase?

5. If a government agency has influenced the price increase, what is the rationale behind that increase?

Mr Berry - the answers to Mr Humphries questions are:

1. Yes.

2. In 1980, the Capital Territory Health Commission set the price of meals for the Red Cross Societys Meals-on-Wheels service at 40t of the average cost of all meals produced at Commission hospitals. The meal cost was derived from the total cost of labour and materials in the then two Food Services Departments, without any attempt to exclude non-meal related costs. This appears to have been an attempt to arrive at a "marginal cost", but it is not explained as such. Using this formula, the initial average cost is 51.72/meal, with a concessional charge set at 50.70/meal.

By 1989/90, the average cost of meals produced by the hospitals had increased to $4.20, with the concessional (or "marginal cost") charge to the Red Cross Society, by the same formula, being set at 51.70/meal. The charge was to be reviewed annually.

3. The charge for a meal provided by the Red Cross Societys Meals-on-Wheels rose from $2.50 to 53.00/meal on 14 October 1991.

6332

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