Hon Sue Ellery questions the Minister for Health regarding a reported $400 million budget deficit in the South Metropolitan Health Service (SMHS). The Minister acknowledges a $204 million deficit and outlines plans for service redesign and staffing reviews to address it.

AnsweredQoN 1258Legislative Council
Asked
17 November 2015
Portfolio
Health

QuestionView source ↗

SOUTH METROPOLITAN HEALTH SERVICE
1258. Hon SUE ELLERY to the
parliamentary secretary representing the Minister for Health:
I refer to media statements that the
South Metropolitan Health Service is currently $400 million over budget.
(1) Can the Minister for Health
confirm that SMHS has a $400 million budget deficit?
(2) If no to (1), what is the
estimated budget deficit for 2015–16?
(3) What is the target for
identified savings?
(4) What is the number of staff the
government will be reducing to meet these savings targets?
(5) What is the reduction in
full-time equivalents at each of the hospitals in SMHS?

AnswerView source ↗

I thank the honourable member for some notice of this
question.
(1)–(5)
As at 31 October 2015, South Metropolitan Health Service is forecasting a net
cost of service deficit of approximately $204 million. This cost will be
mitigated with a focus on redesigning services to become more effective and
efficient, and by raising additional revenue. Service redesign includes
assessing such things as overtime, recall and rostering practices, which all
contribute to a higher FTE and are a drain on a service's budget.
Current FTE levels are higher than is required to deliver activity levels. SMHS
is currently reviewing its staffing levels and options to establish FTE levels
to meet the activity-based funding parameters. This will require some reduction
of staff to occur progressively at some hospital sites.

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