Western Health’s Multi-Million Dollar Losses

Losses at Western Health are more extensive than first thought and the Health Minister Daniel Andrews continues to fail to reveal the full extent of potential future losses.

“The annual report released last week revealed Western Health, which includes Western, Williamstown and Sunshine hospitals, recorded a $10.7 million deficit, a significant loss from a $5 million surplus in 2005/06,” said Helen Shardey, Shadow Health Minister.

“A $2 million loss by Western Health in the subprime crisis was also revealed, on which the Auditor-General signed off on 17 August 2007, adding further pressure to precious hospitals resource.

“The $2 million was lost in just six weeks between 30 July and 9 August.

“It is unclear what has happened since 9 August and how much money has been lost from the $8 million investment.

“However, when questioned in Parliament about the extent of further losses, the Health Minister refused to answer questions about losses sustained by Western Health in secret high risk offshore market speculation.

“The Health Minister would have been aware of this substantial loss, yet refused to answer questions about potential future losses.

“At Western Hospital two operating theatres and 56 ward beds were closed as a result of budget cuts – the hospital has 1,253 patients on surgery waiting lists and the highest urgent surgery waiting list ever recorded.

“Last year, 4,923 patients waited more than eight hours on trolleys in the emergency department at Western Hospital.

“The gynecology unit at Williamstown has closed and budget cuts are also occurring in obstetrics, paediatrics, ear, nose and throat, stroke, heart and asthma services.

“The lost millions could have been used to re-open beds and operating theatres, however the Labor Government has decided to gamble with patients’ lives.

“The Brumby Government and the Health Minister must be held accountable for funds lost on the high risk offshore subprime market. This is money which could have been used to pay for resources and staff across the already stretched Western Health system, but instead the government chose to stake it on high risk, secret investments.

“The Victorian Government currently provides the lowest level of per capita funding to public hospitals, it spends the least per head of population on hospitals and has the fewest number of beds per head compared to all the other state and territories, yet it is willing to gamble with hospital funds,” said Mrs Shardey.

Health System Losing Money

Hospital annual reports confirm a health system in crisis with millions of dollars lost statewide, said Helen Shardey, Shadow Minister for Health.

“Our public hospitals are hemorrhaging cash and the state government continues to dismiss this crisis,” said Mrs Shardey.

“Statewide, the financial situation is bleak in our hospital systems.”

The five worst hospitals in deficit are:

· The Austin - $12 million in deficit

· Western Health - $10.7 million in deficit

· Melbourne Hospital - $10.7 million in deficit

· Royal Women’s Hospital - $6.9 million in deficit

· Southern Health - $6.6 million in deficit

“Bed shortages, long waiting lists and overcrowded emergency departments have been neglected by the Premier – this is a situation he can no longer ignore.

“The Victorian Government provides the lowest level of per capita funding to public hospitals; it spends the least per head of population on hospitals and has the fewest number of beds per head compared to all the other state and territories.

“It is clear our public hospitals are not just in crisis – they are in chaos.

“Today, the state government decided to dump 137 annual reports for analysis in an attempt to cover up the hospital hemorrhaging cash crisis.

“These annual reports are proof of the years of mismanagement by the state government and the failure of the embattled health minister.

“The pressure is on the state government to fix this problem.

“Hospital funding from the Department of Human Services in grants and payments has only gone up five per cent, which is only just above the health CPI.

“Adding to the funding crisis, the number of patients has increased by 3.4 per cent in that same period.

“It is clear the state government is not keeping up with demand.

“This is a state government with a budget surplus of over $1 billion that refuses to adequately fund our hospitals.

“The quality of patient care, despite the hard work of our doctors and nurses, is going to be affected.

“This is why we have 38,109 people waiting in pain on elective surgery lists, this is why 50,000 people walk out of emergency departments without being treated, and this why 70,000 patients wait for more than eight hours on trolleys, before being admitted.

“It’s appalling that a state government with such a large surplus is failing to fund our hospitals,” said Mrs Shardey.