A budget blowout of $303 million is predicted if the Central Adelaide Local Health Network does not take "urgent corrective action", a report has revealed.
But Treasurer Rob Lucas says that action will not lead to job losses for South Australian doctors and nurses.
"We've already highlighted some of the areas we have to look at, for example, Radiology SA, SA Pathology have been told that they must meet the competitive service levels," he said on Friday.
The report, prepared by corporate advisory firm KordaMentha, was ordered after a ballooning health budget deficit was blamed on the new Royal Adelaide Hospital (RAH).
Citing the document, Mr Lucas said it cost the health network 29 per cent more than the National Efficient Price to deliver health services between July and December, 2017.
He added that, according to the report, operating costs had also been increased as a result of the move from the old to the new RAH.
Australian Medical Association SA president William Tam agreed efficiencies should be made, but not at the expense of patient care.
"In terms of the new RAH, the AMA(SA) has expressed our concerns about the lack of efficiencies in the new hospital before it even opened," he said.
"How can it operate at a 'National Efficient Price' when it isn't a national efficient hospital?"
Associate Professor Tam urged the government not to use the report as a reason to reduce clinical services.
"We will not accept any more damage to our clinical services, as doctors, nurses and others strive to keep patient care on track," he said.
Mr Lucas said the overspend was a failing of the previous Labor government.
"The most damning aspect of KordaMentha's report is their finding that there is a 'systemic and widespread breakdown and lack of respect for financial control and performance accountability'," he said.
Mr Lucas said it was unlikely the final report would be released, but that decision will be made by Health Minister Stephen Wade.
Share
