House of Assembly Fifty-Second Parliament, First Session (52-1) 52 1 Parliament of South Australia House of Assembly published Answers to Questions Country Health COUNTRY HEALTH Dr McFETRIDGE House of Assembly Morphett COUNTRY HEALTH 43 Dr McFETRIDGE (Morphett) (1 June 2010). 1.	Have administrative efficiencies savings of $3.52 million in Country Health (as outlined in the 2007-08 Budget) been achieved and if so, how was this achieved? 2.	Have service delivery savings of $20 million in Country Health as outlined in the 2007-08 Budget been achieved for 2008-09 and 2009-10 and how will a further $10.4 million in savings be achieved in 2010-11? The Hon. J.D. HILL House of Assembly Kaurna Minister for Health Minister for Mental Health and Substance Abuse Minister for the Southern Suburbs Minister Assisting the Premier in the Arts COUNTRY HEALTH 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): I am advised: 1.	The administrative efficiencies of $3.52 million in Country Health ($1 million for 2007-08, $1.02 million in 2008-09 and $1.5 million for 2009-10) have been achieved through a reduction in country health administration and project positions foregone through natural attrition, resulting from the reduction of seven regions to one. 2.	The Country Health service delivery changes of $10 million per annum indexed in the forward years, comprise a range of strategies, which include the transition of State nursing home funded beds to Commonwealth funding and a range of administrative changes, which reflect the new organisational management structure of Country Health SA. The total savings requirement across 2008-09 and 2009-10 was $20.2 million ($10 million in 2008-09 and $10.218 million in 2009-10). During 2008-09, the finalisation of negotiations with the Commonwealth Government occurred later than initially expected and this impacted on the total savings achieved with a shortfall of $4.5 million experienced due to this delay. In 2009-10, additional Commonwealth revenue and restructuring of Health unit management was achieved, along with a portion of other identified savings strategies in 2009-10. However, $1.738 million in 2009-10 has not been achieved. The savings requirement for 2010-11 of $10.44 million will predominantly be achieved using existing savings strategies. However, Country Health SA has also developed a range of other savings strategies to move to a balanced budget position.