Not-For-Profit Hospitals

Adjourned debate on motion of Hon. R.A. Simms:

That this council—

1. Notes that not-for-profit hospitals such as Burnside Hospital, Glenelg Community Hospital, North Eastern Community Hospital and the Stirling Hospital play a pivotal role in providing health care for local communities.

2. Recognises that these hospitals partner with local health networks to deliver critical services, playing an important role in reducing the patient load burden on public hospitals.

3. Notes that the new national standards introduced by the Australian Commission on Safety and Quality in Health Care, in particular standard AS4187 (now AS5369):

(a) imposes tighter minimum requirements for health service organisations' compliance with reprocessing of reusable medical devices in health service organisations; and

(b) will necessitate major multimillion-dollar infrastructure upgrades at some health service organisations to remain compliant.

4. Calls on the Malinauskas government to make available no-interest loans to community hospitals to allow them to undertake the necessary infrastructure upgrades to remain operational.

(Continued from 13 November 2024.)

The Hon. J.E. HANSON (17:30): Today, I stand before you to address the critical issues raised by the honourable member of the Legislative Council, Robert Simms, regarding the pivotal role of not-for-profit, community-owned hospitals in our healthcare system and the impact of the national standards introduced by the Australian Commission on Safety and Quality in Health Care.

Firstly, I want to acknowledge the significant contribution of the community-owned hospitals, including Burnside Hospital, Glenelg Community Hospital, North Eastern Community Hospital and Stirling Community Hospital. These organisations have served their communities for many decades and continue to play an important role in providing accessible, high-quality care close to home.

These hospitals are also valued partners to SA Health. Under the Patient Services Panel agreement, all community-owned hospitals are contracted to deliver public patient care on behalf of the state. This partnership has been critical in supporting elective surgery activity and bed capacity, and in helping to manage demand across the public hospital system. We continue to work closely with these providers on longer term strategies to enhance system capacity and patient access.

Across South Australia, the private hospital sector plays a key role in the delivery of public health care through the panel, which has facilitated more than $240 million in public patient activity since 2019. Regular discussions are held with private partners to strengthen partnerships, build capacity and develop sustainable models of care.

The introduction of AS5369 of 2023 marks a significant update in the standards for cleaning, disinfecting and sterilising reusable medical devices. This standard builds on the foundational principles established nearly three decades ago in response to a serious incident where five patients contracted HIV following procedures in an office-based practice setting. AS5369:2023 provides comprehensive guidelines to ensure that reusable medical devices are effectively reprocessed, maintaining the high standards of safety and quality.

We understand that implementing AS5369 will require investment for some hospitals. Under the Patient Services Panel agreement, private and community-owned hospitals are responsible for the procurement and maintenance of plant and equipment required to deliver services safely and in alignment with Australian standards. Historically, governments have not provided financial assistance for compliance-related capital upgrades within private hospitals; however, as with any request for support, proposals will be considered on their merits and with regard to broader public benefit, equity and fiscal responsibility.

In our 2025-26 budget, the Malinauskas government reaffirmed its commitment to health with an additional $1.9 billion in funding to meet demand and create sustainable, more efficient systems. The latest funding boost means that, over the past four budgets, our government has delivered $9 billion in additional funding for the health system. This additional funding is enabling us to add more clinical staff and more hospital beds.

While we promised to deliver 300 beds, we now have increased that to over 600 extra beds across the health system being put in place. Unlike previous governments of both political persuasions, we are not cutting beds, we are not cutting staff and we are not bringing in corporate liquidators to run hospitals.

We have comprehensive plans to address every aspect of the blockages that lead to patients waiting longer on the ramp and in the community for an ambulance and are investing in new health initiatives to meet demand pressures, ease pressure on hospitals and address ramping.

I thank the honourable member for raising this matter. Community-owned hospitals remain valued partners in our health system, and we will continue to work cooperatively with them to ensure that they can meet contemporary standards and continue to provide high-quality care to South Australians.

The Hon. J.M.A. LENSINK (17:33): I rise to speak in favour of the motion of the Hon. Mr Simms regarding the role of not-for-profit community hospitals. These hospitals are part of the fabric of their local communities. Burnside Hospital, Glenelg Community Hospital, North Eastern Community Hospital and Stirling Hospital are more than just medical facilities: they are trusted institutions which families and individuals rely on, staffed by people who often live locally and understand the needs of the patients they serve. They also provide something our health system desperately needs: capacity. They partner with local health networks to deliver critical services and constantly take pressure off our public hospitals and emergency departments. If their services shrink, the public system will feel it immediately.

The challenge many of these hospitals face is the requirement to comply with updated national sterilisation standards, which are important for patient safety but do come with a substantial capital cost. Major capital upgrades are required, and, unlike the large private hospital corporations, community hospitals do not have the level of reserves or large asset bases to cushion these expenses. This is why this motion is so important. It calls on the government to make available no-interest loans to help these hospitals meet their obligations.

The Liberal Party has long recognised the value of community hospitals, which is why we committed $1 million to support the Stirling Hospital if we are elected in March next year. This was the direct result of the member for Heysen, Mr Josh Teague, listening to his community, advocating consistently on their behalf and ensuring their concerns are heard. He understands what the Stirling Hospital means to Hills residents, and he will make sure they are not forgotten.

Backing community hospitals with real support is the difference between simply talking about their value and actually doing something for them. For these reasons, we support the motion and encourage the government to work constructively so that these hospitals can continue their essential contribution to patient care in South Australia.

The Hon. R.A. SIMMS (17:35): I thank members for their contributions. This is a really important issue. It is really important that these not-for-profit hospitals get access to the funds that they need. I know this is a big issue for people in Stirling, in the seat of Heysen in particular. I note the government's opposition to the motion, and I will be sure to make sure that the local community knows the government's position on this issue in coming months.

Motion carried.