Radiology Services

The Hon. C. BONAROS (14:51): I seek leave to make a brief explanation before asking the Minister for Health and Wellbeing a question.

Leave granted.

The Hon. C. BONAROS: In a state budget media release issued on 4 September, the minister indicated:

Efficiencies in public imaging and diagnostic services will be pursued. Previous external reviews have highlighted inefficiencies in SA Medical Imaging Services resulting in around a 30 per cent higher net cost compared to equivalent services interstate. It is anticipated that efficiencies of $1.1 million in 2018-19, rising to $6.2 million from 2021-22 will be achieved. External providers already deliver radiology services at the Modbury and Noarlunga Hospitals, and some services at Lyell McEwin Hospital and country hospitals. Should efficiencies not be achieved, the option open to the Local Health Network Boards to procure services from alternative providers will be pursued;

My question to the minister is: if the requisite efficiencies in public imaging and diagnostic services are met, will the government categorically rule out the option for local health network boards to go to alternative providers?

The Hon. S.G. WADE (Minister for Health and Wellbeing) (14:53): I will certainly provide further information to the member, because my recollection is that the Treasurer has already corresponded with stakeholders on this point, but let's be clear: in relation to both medical imaging and pathology, the concern of the government is making sure that South Australian taxpayers get value for money services that are input into their health care.

We have a situation where one of our hospitals is more than 20 per cent above the average price for hospital services. That is completely unacceptable, because that means there are millions of dollars in inefficiencies and services that could be going into providing health care. The government's commitment is to drive efficiencies in public sector services. The commitment of the government is that local health boards would be able to go to alternative providers if the efficiencies can't be achieved within the public sector.

The honourable member's question, of course, very deftly highlights the hypocrisy of the members opposite because, as she quite rightly highlights, the former Labor government, in spite of its rhetoric about privatisation, has been actively engaging private providers within the health system. In relation to medical imaging, as the honourable member says, Modbury Hospital, Noarlunga Hospital and parts of the Lyell McEwin services are already provided by private providers. They already provide it in Angaston, Bordertown, Ceduna, Gawler, Kangaroo Island, Millicent, Mount Barker, Mount Gambier, Naracoorte, Port Augusta, Port Lincoln, the South Coast, Wallaroo and Whyalla. But of course it doesn't stop there either.

In relation to hotel services, most of the hotel services to metropolitan hospitals are already provided by the private sector. Considering the hypocrisy we have been hearing from the members on the other side of the chamber, the most dramatic shift towards private services in recent decades was under the former Labor government, when they established a $2.4 billion private hospital at the end of North Terrace, which we'll get back in about 30 years' time, after we've spent about $11 billion in payments to the private sector.

The fact of the matter is that we make no apology for looking at private provision as an alternative to public provision, particularly if the public sector can't achieve efficiencies. In that respect, we're no different to the Labor Party.

Members interjecting:

The PRESIDENT: Are we all finished? The Hon. Mr Wortley.