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Legislative Assembly for the ACT: 2000 Week 7 Hansard (29 June) . . Page.. 2260 ..

MR MOORE (continuing):

I would like to mention two areas that are traditionally cited as concerns. In fact, I will not repeat these because I used those examples at question time. I will save time, but I suggest that members look at the answer at question time and look at the results that I have tabled.

The second document attempts to address the very false impression peddled by some commentators that this government has cut funding to the hospital. As the paper shows, the base budget for the hospitals shows 2.9 per cent of growth in public funding in 2000-2001. In addition, other services sought by the government are yet to be factored into the finances of the Canberra Hospital and other providers. These services, including the growth in needs funding increases and further funds for public elective surgery, are to be distributed during negotiations for purchase agreements.

Members will be aware that since January 1999 the hospital has been grappling with a significant problem of above budget expenditure. There have also been some revenue setbacks, with a decline in the number of patients using their private insurance. I have required, and also assisted, the hospital to bring this situation back under control. At the same time I have, in one important sense, limited their ability to repair the expenditure problem by applying one overriding requirement-that patient care must not be diminished. This government will, reluctantly, accept a delay in financial correction rather than let services be affected.

The third document I am tabling is the final report of Mr Stephen Anderson on financial reform opportunities in the hospital. Members will recall that in January 1999 I initiated a wide-ranging review of financial management at the Canberra Hospital. A key element of this review was the engagement of an external consultant, Mr Anderson, to provide expertise on reform opportunities in the hospital's financial systems. Quite clearly, in this area too, I have not been sitting on my hands.

A steering committee was established to oversee this process, consisting of a number of senior Canberra Hospital managers and representatives of the Department of Health and Community Care and ACT Community Care. For over a year this steering committee has examined the current management processes for both the expenditure and revenues within the Canberra Hospital and proposed directions to be taken over the short, medium and long term to address the practices and processes where improvements could be made.

Another key purpose of this process was to ensure that all managers at all levels within the Canberra Hospital became more aware of and responsible for the financial circumstances underlying their managerial decisions. The steering committee has recently had its final meeting, and Mr Anderson has provided a report on the outcomes of the matters discussed.

Overall, this has been a very important exercise. It has assisted the Canberra Hospital and the government greatly in the area of reforming the management of the hospital, and between the hospital and the government.

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