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House of Assembly - Fifty-Second Parliament, First Session (52-1)
2011-06-21 Daily Xml
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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 (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.

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