Page 2809 - Week 09 - Wednesday, 17 September 2014
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MS GALLAGHER: That is certainly a comment that has been used nationally across the health system. I have heard it from the national body of the Health Care Consumers Association. I have no doubt that there are opportunities for efficiencies across the healthcare system. There is work underway across government, from Health and Treasury, to look at the costs across the ACT public health system and ways to drive efficiencies within it. Indeed in this year’s budget a large sum of money was returned to Treasury from Health for operating under budget. That is the first time that that has occurred. We continue to liaise with Calvary Public Hospital about their budget each year.
So there is no doubt that there are efficiencies. I have not come across waste. In using the word “waste”, what some people think is waste, others will argue is essential. Some of the issues around cost that we are looking at, and would have to be looked at when you compare us with other hospitals, is the level of service that is offered here. I have certainly been criticised in this place when people have had to go to Sydney for treatment for particular things, but that certainly contributes to the cost.
We provide a level of service here in the ACT that far exceeds what would be provided to a population base of our size, and we do that for a reason—because we would like to see our community treated here at their local hospital. But that comes at a cost. That, to some people, will be considered waste; others will think that it is an essential service. Certainly, driving efficiencies in health care is part of the solution in terms of returning our budget to surplus. We will be ensuring that the health budget does not grow between eight and 10 per cent per year but is more in line with five to seven per cent, which is indeed what has occurred in the last year.
MADAM SPEAKER: Supplementary question, Mrs Jones.
MRS JONES: Minister, are Canberra’s public hospitals the most expensive in Australia even when compared only with other principal referral hospitals in particular?
MS GALLAGHER: In that dataset it certainly looks to be the case, although—when I questioned Health officials about it—there is some uncertainty about what is included in those figures and whether we are comparing apples with apples. There is a whole range of different costs laid into that. But also, when you do separate out some of those issues—for example, some of the level of service issues that I just spoke about in my previous answer—the additional costs of superannuation for the ACT are in the order of $30 million a year. That is the actual difference that we pay because all of our employees are not on 9½ per cent per annum. That contributes to overhead costs.
So yes, in that dataset, that looks to be the case. I think there probably are some reasonable explanations, including that we service our community here with a much higher level of service and specialty than you would for a population of 380,000. If that is something that the Assembly has a view on, about whether that is right or whether we should cut costs and remove those services, I would suggest bringing a debate to the Assembly.
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