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Legislative Assembly for the ACT: 1999 Week 2 Hansard (9 March) . . Page.. 435 ..

Mr Moore' s understanding of what you were seeking was information in relation to major consultancies into the finances of The Canberra Hospital.

In responding to your question on 18 February 1999, Mr Moore referred to the findings of the Commonwealth Grants Commission and other national studies that indicate over-funding of the ACT Hospital system. While these were not of course consultancies commissioned by the ACT Government, they do nonetheless present some interesting information in relation to the high cost of the ACT's public hospital system and they are informing much of the work being done to improve the efficiency of our hospitals.

These would be three consultancies that Mr Moore considers would be relevant to your question.

The Booz Allen Hamilton consultancy cost in the order of $ 1.2M across the 1994/95 and 1995/96 financial years. Reference to this is made on page 70 of the Annual Report for the Department of Health and Community Care, 1995/96. Savings achieved at The Canberra Hospital as a result of the operational efficiency review totalled $6.1M.

The second consultancy - "Analysis of ACT Health and Community Care Expenditure" was conducted by Mr David Renfrey. The 1997/98 cost reported at page 31 of the Department's 1997/98 annual Report was $29,350 with the balance of some $25,000 payable in 1998/99.

This consultancy did not solely relate to The Canberra Hospital; it also included review of the costs and casemix of the Calvary Public Hospital. The Report uses benchmark data from hospitals in other States and national cost studies to show the high cost procedures and expenditure categories in ACT hospitals and suggests areas of our hospitals where managers might usefully pursue efficiencies.

The Renfrey Report does not per se provide recommendations in relation to specific actions to reduce expenses. Rather it is designed for the use of clinicians and hospital administrators in attempting to come to grips with the high cost of providing services to the community.

A further consultancy that Mr Moore requested in the current financial year is the engagement of Mr Steve Anderson to assist The Canberra Hospital in implementing a very significant financial management reform agenda. I am sure that you share Mr Moore's concern about the Hospital's ability to manage within the resources provided to it by Government and Mr Anderson brings considerable expertise and experience to this most important task.

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