Page 3061 - Week 14 - Tuesday, 5 December 1989
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Hospital Services
(Question No. 42)
Mr Humphries asked the Minister for Community Services and Health, upon notice, on 15 November 1989, in relation to the management of hospital administration in the ACT:
(1) Has the future of the board of management style of hospital administration been placed under question when this system was one of the two key recommendations of the Kearney Report and received widespread community support; if so, why.
(2) Has a Treasury team been sent to examine the financial management of the hospitals only a few months after an interim board was created; if so, why.
(3) What is the Minister's response to the cost saving recommendation of the interim board.
(4) Has the Minister given a direct response to the interim board's cost saving proposals, particularly in light of the fact that we are now four months into the 1989-90 financial year and already facing a substantial cost blowout; if not, why not.
(5) Does the Minister attribute any of the cost blowout to the performance of the hospital board.
Mr Berry: The answer to Mr Humphries' question is as follows:
(1) The Government when it came to power had the redevelopment of the hospital system as a high agenda item. I announced on 28 November the Government's decision to retain a Board of Directors for the Woden Valley and Royal Canberra Hospitals.
(2) The Treasury Team was sent in to examine the financial management of the hospitals after an approach from the Interim Board which had identified a possible budget blowout.
(3) & (4)
The Government in development of its budget proposals identified savings in the health area. In developing these savings proposals, the Government accepted advice on a range of options from the Interim Board. Proposals raised since are being considered in the context of the Treasury Review.
(5) The examination of the cost blowout is under review by the Treasury Team sent in by this Government in response to requests from the Board to examine the problem. It would be premature to speculate on the outcomes of that review before it has had a chance to report fully. The Grants Commission identified
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