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Legislative Council - Fifty-Fourth Parliament, Second Session (54-2)
2021-05-27 Daily Xml
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Central Adelaide Local Health Network

The Hon. S.G. WADE (Minister for Health and Wellbeing) (14:28): I seek leave to make a ministerial statement.

Leave granted.

The Hon. S.G. WADE: The Marshall Liberal government inherited a Central Adelaide Local Health Network that was operationally broken. The organisation had a large and out of control deficit and lacked leadership stability, having had 10 CEOs in 10 years.

Members interjecting:

The PRESIDENT: Order!

The Hon. S.G. WADE: The extent of the problem was so significant that it required an intensive four-year recovery program.

The Hon. R.P. Wortley interjecting:

The PRESIDENT: Order, the Hon. Mr Wortley!

The Hon. D.W. Ridgway interjecting:

The PRESIDENT: Order! That sort of commentary across the chamber is not helpful. I think, going on previous experiences in this chamber, I will ask the member to withdraw.

The Hon. D.W. RIDGWAY: I withdraw, Mr President.

The PRESIDENT: Thank you. The minister will be heard in silence.

The Hon. S.G. WADE: The total cost of the contracts related to the recovery plan was almost $35 million, which was $10 million less than the original cost estimate. The Central Adelaide Local Health Network continues to drive positive change through the recovery program, including reducing the budget deficit from in excess of $300 million to a projected variance of below $120 million. The average length of stay across CALHN has reduced to 5.99 days—financial year to date, April 2021—compared to 6.47 days for the same period last year.

CALHN has introduced a new clinical program structure, moving from four cumbersome divisions with budgets of approximately $500 million each to an organisational structure with 13 programs, delivering world-class clinical outcomes within manageable budgets.

In April 2021, CALHN engaged KordaMentha to provide consultancy services for a period of 12 weeks at a cost of $90,000, excluding GST, with both on the ground and remote support. This engagement focuses on maximising executive operational capacity, capability and structure. It is a human resource focused effort to support the effectiveness of the executive team. This engagement is separate to previous contracts with KordaMentha. This engagement does not relate to potential savings in CALHN.

The internal working document referred to in this place earlier this week was prepared and completed under the former contract. Under the leadership of CEO Leslie Dwyer and board chair Raymond Spencer the government looks forward to CALHN continuing to deliver quality outcomes in a sustainable way.

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