RESIDENTIAL AGED CARE

Mr WILLIAMS (MacKillop—Deputy Leader of the Opposition) (15:13): My question is to the Minister for Health. Does the minister believe that funds held in trust, such as bonds paid by residents of aged-care facilities, can legitimately be used to pay day-to-day operating expenses, and is the minister aware that a federal Department of Health and Ageing report into residential aged care warns against the use of such bonds for day-to-day operational expenses?

The Hon. J.D. HILL (Kaurna—Minister for Health, Minister for Mental Health and Substance Abuse, Minister for the Southern Suburbs, Minister Assisting the Premier in the Arts) (15:14): I assume that the member is alluding to matters which were in the media just recently about Keith hospital and allegations made that advice to the board of that hospital was somehow illegal, immoral. That is a proposition that is rejected strongly by the person who is alleged to have made those statements. All the evidence that I have looked at supports her position. What was suggested to the hospital board, which was looking—

Members interjecting:

The SPEAKER: Order!

The Hon. J.D. HILL: Madam Speaker, it is interesting that the opposition asked the question. I am trying to give an answer which is reasonably uninflammatory but I get this kind of political interjection.

Members interjecting:

The SPEAKER: Order!

The Hon. J.D. HILL: I would have thought, given that we have been sitting for three days, that members on the other side would have had plenty of opportunities to ask me questions about Keith. They choose to ask the last question, with one minute to go—

The Hon. P.F. Conlon interjecting:

The Hon. J.D. HILL: That is right; they had to address the important issues of the day, such as what people thought about different things. I am more than happy to give a lot of information about Keith, and I will answer this question. The question was a leading question. It did not refer to Keith directly but, of course, that is what the member was referring to. The answer is: no, as I understand it, bond money cannot be used for the purposes which the member described. I am informed that it was not suggested by my advisers that that should be the case.

In fact, what they said in relation to Keith is that they had $1 million plus in cash spread across seven accounts, they had a fixed asset of two and a bit million dollars, which they owned. So, they had something like $4 million worth of assets, which was more than enough for them to go to a bank to seek cash flow, because one of the issues they raised with us when we suggested a business plan that would reform the way they ran the hospital and make them sustainable was that they needed some cash flow. I am also informed that subsequent to that, a charitable organisation has offered them at least $300,000 to help cash flow the operation, so this becomes somewhat moot if that is the case.

While we are talking about Keith, I am absolutely convinced that the Keith hospital will stay open. I am absolutely convinced that if the board does the things that we have suggested, which is to make sure that they get the right sort of money from the commonwealth through aged care beds, and we believe that is north of $200,000, and put in place the efficiencies that we have suggested, then they will survive and, in fact, flourish. There will be no need to reduce any of the range of services that they have and they will be able to go on and become a highly viable and sustainable hospital.

We gave similar advice to them that we have given to both the Ardrossan and Moonta hospitals. The local member for that area would know that both of those hospital boards are more than happy with the arrangements that have been put in place and both of them will be in a better position financially as a result of the advice that we gave them, without the government subsidy. In fact they will be better organisations because they will not be relying on government subsidies, they will be highly viable and operating in the black into the future. I know that the management from both of those hospitals have told us how happy they are with the arrangements that we have put in place. The same arrangements have been offered to Keith, but they have not yet accepted them. I will say to them again that we are happy to work with them. If they adopt—

Mr Williams interjecting:

The SPEAKER: Order! Member for MacKillop, be quiet.

The Hon. J.D. HILL: —a business plan with the reforms that we have suggested, then they will be viable. We are happy to pay for the business plan and we are happy to assist them through the transition. We have said all of this to them—they know that. I think it is important that the community in Keith understands that the hospital will not close. All of the services can be maintained if the board makes some tough decisions.