Ministerial Statement

KEITH AND DISTRICT HOSPITAL

The Hon. J.D. HILL (Kaurna—Minister for Health and Ageing, Minister for Mental Health and Substance Abuse, Minister for the Arts) (14:01): I seek leave to make a ministerial statement.

Leave granted.

The Hon. J.D. HILL: As part of savings measures for the 2010-11 budget, some funding was withdrawn from three non-government country hospitals at Ardrossan, Moonta and Keith. The state subsidy was a small part of the budgets for these hospitals, which receive most of their funding from private health insurers for services to private patients and from the commonwealth for aged-care services. At the time of this decision, I met with representatives of each of these hospitals and made the commitment that the government would support them while they restructured their services.

For Ardrossan hospital, the transition was straightforward, with the hospital acting on advice to access the commonwealth funding for aged-care beds for which it was eligible, and now it is in a better off position. The Moonta transition required more detailed work, including support to help the hospital to develop a sustainable model. However, on 1 March 2011, the Yorke Peninsula Country Times reported that Graeme Sare had been appointed as the new chairperson. He stated:

This is an opportunity to implement real change in our organisation to ensure the hospital remains a viable and valuable resource for the community. The Board and I have been working closely with Country Health SA to formulate a suitable approach that will see the hospital move forward in a sustainable way.

For the Keith and District Hospital, the government has continued to support the hospital so that it can develop a sustainable model. A director of nursing was made available to assist the hospital to maximise its aged-care revenue and improve nurse rostering. The hospital has continued to receive a state subsidy of $300,000 per annum, indexed to $308,250 in 2011-12, for its emergency department, and it received a one-off grant of $29,750 in recognition of the emergency public inpatient services the hospital provides in the region.

The government also gave a further undertaking to fund the hospital's bank overdraft finance costs incurred in 2011-12 while implementing the hospital's strategic direction plan. It was clear that, with or without state funding, the Keith and District Hospital still faced considerable challenges, including difficulty in attracting permanent general practitioners. This has led to the hospital spending considerable resources on locum doctors.

In recent months, I have held discussions with the new chief executive officer of the hospital board, Bill Hender, and the chairperson, James De Barro, about how we can best help them to build a sustainable future for the hospital. At a meeting just this week with Bill Hender and James De Barro, I put two options on the table. The first was that the state government take over the running of the Keith and District Hospital from July 2012. The second option was that the state government provide a one-off grant of $350,000 for the 2012-13 financial year to help the hospital achieve a fully functioning and profitable GP practice, with two doctors supported by a practice nurse.

Mr De Barro and Mr Hender took these options to the Keith and District Hospital board last night, and I am pleased to report that the board agreed to the second option. At the end of 12 months the outcomes will be reviewed. The offer for the state government to take over the Keith and District Hospital remains on the table throughout the term of this government, and part of the reason for that is so that the hospital can go to the marketplace to find GPs with the assurance that the government is standing behind them. One of the risks that the hospital has is that GPs are reluctant to go there because they are uncertain about the hospital's future. Knowing that the government is there to support them, I think, will help them do that.

Mr Hamilton-Smith interjecting:

The SPEAKER: Order!

The Hon. J.D. HILL: I would have thought he would be happy, Madam Speaker; I fixed a problem for him.

Ms Chapman: We are.

The Hon. J.D. HILL: Well, that's a funny way of showing happiness, that's all I can say. I thank Mr De Barro, Mr Hender and other board members for their work on reaching this resolution. I also thank Country Health SA—I must say they have been working on this for some time. I look forward to continuing to work together in good faith to achieve a sustainable health service for the Keith community.