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Legislative Assembly for the ACT: 1996 Week 4 Hansard (16 April) . . Page.. 955 ..

MRS CARNELL (continuing):

I will turn first to cost increases. By the end of this financial year Woden Valley Hospital will have handled an increase of 7 per cent in hospital admissions. This has resulted in significant additional costs in areas such as sessional payments, pharmaceuticals and medical supplies. The impact of this increase in throughput is estimated at $3.2m. Mr Speaker, while the Government is disappointed at this budget outcome, on this point at least I am proud to note that a significant component of the cost overrun is actually being used to treat more patients. In previous years we actually saw budget blow-outs even though fewer patients were treated. Another cost increase that was not anticipated is the superannuation guarantee payments for visiting medical officers, which were subject to a ruling by the Commonwealth Government. These have had to be paid back, at an additional cost of $0.6m. The appropriation also includes an additional $0.4m for Calvary Hospital due to increased medical costs relating to the previous year.

The second factor concerns delays in the achievement of reforms in management and service delivery areas. In the original budget allocation the Government sought to achieve major changes to virtually every line area of the department, including significant reductions in the cost of administration. Many efficiencies have been achieved on target; but, regrettably, savings have been delayed in four main areas - the operational efficiency review at Calvary and Woden Valley public hospitals, contract arrangements for visiting medical officers, the disability services program, and failure to achieve the full productivity component required to fund the previous enterprise bargaining agreement.

Mr Speaker, the operational efficiency review carried out by Booz Allen and Hamilton still has the potential to achieve significant savings in a full year. However, delays caused by industrial opposition to these changes have reduced the savings that were projected for this year from $5.5m to $1.4m. The Assembly has already debated the issue of changes in the contracts for visiting medical officers. As the Government has already noted, these new contracts are projected to save $200,000 in 1995-96. This still represents a shortfall of $2.8m.

Despite additional funding for people with disabilities, a shortfall of $600,000 is also projected to occur in the residential services program. Again, industrial opposition to changes in work practices and models of care has resulted in delays in achieving the reforms identified by the Dell report.

Debate interrupted.

MR SPEAKER: Order! It being 5.00 pm, I propose the question:

That the Assembly do now adjourn.

Mr De Domenico: I require the question to be put forthwith without debate.

Question resolved in the negative.

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