HEALTH BUDGET

In reply to the Hon. I.F. EVANS (Davenport) (2 May 2012).

The Hon. J.D. HILL (Kaurna—Minister for Health and Ageing, Minister for Mental Health and Substance Abuse, Minister for the Arts): I am advised:

1. SA Health has recently appointed Deloittes to conduct a review of the Central Adelaide Local Health Network and Northern Adelaide Local Health Network, and KPMG to conduct a review of the Southern Adelaide Local Health Network. The reviews commenced in April.

The purpose of the reviews is to obtain a comprehensive and updated view of where the potential areas of significant savings and governance compliance issues are and to provide remedial recommendations and implementation plans to address these findings. The review will cover the seven major metropolitan hospitals, being Royal Adelaide Hospital, The Queen Elizabeth Hospital, Lyell McEwen Hospital, Modbury Hospital, Flinders Medical Centre, Repatriation General Hospital and Noarlunga Hospital.

The results of this review will be used to inform Cabinet regarding the savings strategies that SA Health will implement in order to deliver a balanced budget.

The cost of the two consultancies will be around $900,000, inclusive of GST.