SA plan to save public hospital network

The South Australian government has put in place a recovery plan to address a major budget blowout at the Central Adelaide Local Health Network.

What the CALHN review found:

* A likely budget blow-out in 2018/19 of more than $300 million.

* It blamed much of the extra costs on "workarounds" put in place after the move to the new Royal Adelaide Hospital.

* It found a systemic and widespread lack of respect for financial controls with little commitment to reducing costs.

* It described some leaders within CALHN as "very poor" and said the organisation had suffered from significant turnover of executive staff.

* It revealed little commitment to clinical excellence across the health network.

What the South Australian government plans to do:

* It has appointed corporate advisory and restructuring group KordaMentha to take charge of the first stage of a turnaround plan at a cost of $18 million.

* KordaMentha's strategy will seek to make savings of more than $270 million over the next three years.

* It will seek to improve hospital efficiencies by reducing the length of patient stays and cutting the use of agency nursing staff and will seek to have all hospitals operate at or better than national standards.

* It will increase financial controls including the introduction of an activity-based budget that optimises public and private patient revenue.


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Source: AAP


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SA plan to save public hospital network | SBS News