❓ A question regarding the St John of God Midland Public Hospital public-private partnership, with the Minister responding positively, highlighting benefits and savings, while facing interjections from the opposition.
AnsweredQoN 920Legislative Assembly
QuestionView source ↗
ST JOHN OF GOD MIDLAND PUBLIC HOSPITAL —
PUBLIC–PRIVATE PARTNERSHIP
920. Mr F.A. ALBAN to the Minister for
Health:
I understand that next week marks
one year since the opening of St John of God Midland Public Hospital. Can the
minister please update the house on how this successful public–private
partnership is assisting the government to deliver more efficient and effective
healthcare services for the community?
PUBLIC–PRIVATE PARTNERSHIP
920. Mr F.A. ALBAN to the Minister for
Health:
I understand that next week marks
one year since the opening of St John of God Midland Public Hospital. Can the
minister please update the house on how this successful public–private
partnership is assisting the government to deliver more efficient and effective
healthcare services for the community?
AnswerView source ↗
I thank the member for Swan Hills
for the question. I am very happy to talk about the effectiveness and the role
of St John of God Midland Public Hospital in providing health care for
residents in the east metropolitan region. It obviously provides for residents
in the Swan Hills electorate and residents in my electorate of Kalamunda as
well as Midland, Bassendean, West Swan, Forrestfield and the surrounding areas,
so it is a very important hospital. Indeed, it is an outstanding example of a public–private
partnership that is delivering health benefits and value for money for the
community. Compared with its predecessor Swan District Hospital, it is a much
larger capacity hospital with 307 public beds and an expanded emergency
department. Additional services include cancer treatment, and cardiology and
orthopaedic surgery. It has increased anaesthetic cover and expanded maternity,
rehabilitation and mental health services. It opened on 24 November last year,
and I was very pleased to be there to witness the opening of the hospital by
the Premier and my predecessor as Minister for Health with quite a number of
other members of Parliament and members of the community. Since then it has
cared for more than 142 000 patients through over 55 000 emergency
presentations, 26 000 inpatient separations and 74 000 outpatient visits. As
well as providing very high quality care in an outstanding new facility, it
also provides significant value for money for taxpayers. In particular, over
the 20-year life of the agreement, the public sector comparator shows that
there will be savings of $1.3 billion, or about 21 per cent in today's
dollars compared with what would —
Mr
D.J. Kelly : Release the figures!
Mr
J.H.D. Day : It is $1.3 billion dollars out of a $5 billion contract —
Mr
D.J. Kelly interjected.
The
SPEAKER : Member for Bassendean.
Mr
J.H.D. DAY : It is estimated that it would have otherwise been a $6.3
billion cost over that 20-year period. Take $1.3 billion off $6.3 billion, and
it is about a 21 per cent saving, which is something that the member for
Bassendean and the union movement in Western Australia do not really like to
acknowledge. This substantial saving, although still providing very high
quality services, has been brought about by competitive construction costs, the
sharing of infrastructure with St John of God Health Care and also discounts on
the state cost of delivering services of between 3.3 per cent and 15 per cent.
I know that the union movement and the Labor Party like to run a scare campaign—we
have seen some of that today—in relation to conditions for employees
and security of employment and so on. But, in fact —
Mr
D.J. Kelly : If people were given the choice, what would they choose,
minister?
The
SPEAKER : Member for Bassendean, I call you to order for the first time.
Minister, a quick answer.
Mr
J.H.D. DAY : I am happy to respond to the member for Bassendean's
interjection, because all those who were previously at Swan District Hospital
were given the opportunity to apply for positions at the new hospital. The
majority of them did transfer across—slightly more than 50 per cent—and
they received a transition payment for doing so. Those who did not transfer
across were provided the opportunity to take up positions elsewhere within WA
Health or given the opportunity to apply for a voluntary severance. They have
been very well looked after—union members, non-union members and former
staff at Swan District Hospital. It is the case that public–private
partnerships have facilitated significant private sector investment in our
health system. We have also seen that at Joondalup Health Campus, going back to
the original contract put in place when the coalition government was in office
in 1996. Joondalup Health Campus and the Peel Health Campus have grown
substantially in recent years with the partnership between the state and the
private sector. Since we came into government in 2008, it is estimated that
public–private partnerships have delivered sector-wide savings of
around $2 billion to taxpayers across all areas. The member for Bassendean does
not like to hear this, but I suspect that the member for Victoria Park, the
shadow Treasurer, is very nervous about some of these issues.
Several members interjected.
The
SPEAKER : Thank you! Wind it up, please.
Mr
J.H.D. DAY : In particular, the Labor Party's platform states at
point 76 —
WA Labor will not extend any
contracts for privatised hospitals or services.
Point 77 states —
WA Labor will negotiate early
termination of these contracts and return these hospitals and services to
public ownership as soon as possible.
Mr
B.S. Wyatt : Whip us, John; make us feel cheap!
Mr
J.H.D. DAY : That is the Labor Party's policy. Members opposite need
to explain how they will fund it and how they will provide health care at
Midland, Joondalup, Peel and other locations in Western Australia.
The
SPEAKER : Thank you. Member for Victoria Park, I do not really like this
familiarity.
Distinguished
Visitors — Association of Southeast Asian Nations Delegation Statement
The SPEAKER : Members, I would
like to welcome the delegation of politicians from the Association of Southeast
Asian Nations who have come from our various neighbouring countries. We welcome
you today.
[Applause.]
for the question. I am very happy to talk about the effectiveness and the role
of St John of God Midland Public Hospital in providing health care for
residents in the east metropolitan region. It obviously provides for residents
in the Swan Hills electorate and residents in my electorate of Kalamunda as
well as Midland, Bassendean, West Swan, Forrestfield and the surrounding areas,
so it is a very important hospital. Indeed, it is an outstanding example of a public–private
partnership that is delivering health benefits and value for money for the
community. Compared with its predecessor Swan District Hospital, it is a much
larger capacity hospital with 307 public beds and an expanded emergency
department. Additional services include cancer treatment, and cardiology and
orthopaedic surgery. It has increased anaesthetic cover and expanded maternity,
rehabilitation and mental health services. It opened on 24 November last year,
and I was very pleased to be there to witness the opening of the hospital by
the Premier and my predecessor as Minister for Health with quite a number of
other members of Parliament and members of the community. Since then it has
cared for more than 142 000 patients through over 55 000 emergency
presentations, 26 000 inpatient separations and 74 000 outpatient visits. As
well as providing very high quality care in an outstanding new facility, it
also provides significant value for money for taxpayers. In particular, over
the 20-year life of the agreement, the public sector comparator shows that
there will be savings of $1.3 billion, or about 21 per cent in today's
dollars compared with what would —
Mr
D.J. Kelly : Release the figures!
Mr
J.H.D. Day : It is $1.3 billion dollars out of a $5 billion contract —
Mr
D.J. Kelly interjected.
The
SPEAKER : Member for Bassendean.
Mr
J.H.D. DAY : It is estimated that it would have otherwise been a $6.3
billion cost over that 20-year period. Take $1.3 billion off $6.3 billion, and
it is about a 21 per cent saving, which is something that the member for
Bassendean and the union movement in Western Australia do not really like to
acknowledge. This substantial saving, although still providing very high
quality services, has been brought about by competitive construction costs, the
sharing of infrastructure with St John of God Health Care and also discounts on
the state cost of delivering services of between 3.3 per cent and 15 per cent.
I know that the union movement and the Labor Party like to run a scare campaign—we
have seen some of that today—in relation to conditions for employees
and security of employment and so on. But, in fact —
Mr
D.J. Kelly : If people were given the choice, what would they choose,
minister?
The
SPEAKER : Member for Bassendean, I call you to order for the first time.
Minister, a quick answer.
Mr
J.H.D. DAY : I am happy to respond to the member for Bassendean's
interjection, because all those who were previously at Swan District Hospital
were given the opportunity to apply for positions at the new hospital. The
majority of them did transfer across—slightly more than 50 per cent—and
they received a transition payment for doing so. Those who did not transfer
across were provided the opportunity to take up positions elsewhere within WA
Health or given the opportunity to apply for a voluntary severance. They have
been very well looked after—union members, non-union members and former
staff at Swan District Hospital. It is the case that public–private
partnerships have facilitated significant private sector investment in our
health system. We have also seen that at Joondalup Health Campus, going back to
the original contract put in place when the coalition government was in office
in 1996. Joondalup Health Campus and the Peel Health Campus have grown
substantially in recent years with the partnership between the state and the
private sector. Since we came into government in 2008, it is estimated that
public–private partnerships have delivered sector-wide savings of
around $2 billion to taxpayers across all areas. The member for Bassendean does
not like to hear this, but I suspect that the member for Victoria Park, the
shadow Treasurer, is very nervous about some of these issues.
Several members interjected.
The
SPEAKER : Thank you! Wind it up, please.
Mr
J.H.D. DAY : In particular, the Labor Party's platform states at
point 76 —
WA Labor will not extend any
contracts for privatised hospitals or services.
Point 77 states —
WA Labor will negotiate early
termination of these contracts and return these hospitals and services to
public ownership as soon as possible.
Mr
B.S. Wyatt : Whip us, John; make us feel cheap!
Mr
J.H.D. DAY : That is the Labor Party's policy. Members opposite need
to explain how they will fund it and how they will provide health care at
Midland, Joondalup, Peel and other locations in Western Australia.
The
SPEAKER : Thank you. Member for Victoria Park, I do not really like this
familiarity.
Distinguished
Visitors — Association of Southeast Asian Nations Delegation Statement
The SPEAKER : Members, I would
like to welcome the delegation of politicians from the Association of Southeast
Asian Nations who have come from our various neighbouring countries. We welcome
you today.
[Applause.]
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