Page 864 - Week 04 - Tuesday, 27 March 1990

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REDEVELOPMENT OF THE PUBLIC HOSPITAL SYSTEM AND CORPORATISATION OF HOSPITAL SERVICES SUPPLY CENTRE
Ministerial Statement and Paper

MR HUMPHRIES (Minister for Health, Education and the Arts), by leave: The Alliance Government is intent on providing the highest quality health care system for the people of Canberra. I believe that our community must have access to a comprehensive range of high standard health services to provide for the needs of the very young, the increasing numbers of frail aged, and many other groups who have specialised needs.

The challenge for this Government has been to balance the ability to provide the best possible health system, with a cost the community can afford which does not adversely take resources away from areas of the budget important to preventing ill health. The public hospital system is an essential part of this system. Whatever progress is made on preventing illness, there will always be emergencies and the need for care of the complex or chronically ill. At these times of trouble and acute pain, we need to know that the best possible care is at hand.

In my view, Mr Speaker, the first place to look for the resources necessary for the highest quality health care is to target existing inefficiencies. When the Government took the reins on 5 December last year, it was faced with the prospect of a $7m budget overrun in our public hospitals. This was the legacy of poor management on the part of the previous Labor Government in failing to address serious problems which were drawn to its attention by the Hospitals Board as early as August 1989.

To address this problem in a responsible way, I quickly announced a package of measures which were designed to improve the efficiency and effectiveness of the public hospital system in a way which would preserve quality while containing costs within budget. Many of these measures have already been fully implemented by the Hospitals Board, and the remainder are being vigorously pursued.

But these measures alone will not be enough. As the Chief Minister has reminded us on many occasions recently, and no doubt will do so again when he releases the Government's budget strategy statement later this week, the ACT is faced with a shortfall of around $100m in the next financial year. This is a huge figure and decisive and radical steps are required now if we are to meet this challenge. I will now detail two of the more important initiatives in the Government's package of essential reforms. First, the redevelopment of the public hospital system, and second, the corporatisation of the Health Services Supply Centre at Mitchell.


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