28 October 2007

Minister rejects Royal North Shore budget cut claims

NSW Health Minister Reba Meagher today rejected claims of a budget cut at Royal North Shore Hospital.

"A draft working document which considers options for savings has no status - when it comes to Royal North Shore Hospital, the facts speak for themselves," Ms Meagher said.

"The Royal North Shore Hospital budget has been increased to $357.5 million in 2007/08 - an increase of $9.5 million on 2006/07 and $34.2 million over the past two years.

"Since 2004/05, the NSW Government has funded more than 41additional beds at Royal North Shore including 4 intensive care beds and cots - to bring the total number of beds to 599.

"The Area Health Service has canvassed some ideas but one thing the Government won't allow is cuts to frontline nurses, doctors or beds."

Ms Meagher said there was nothing wrong with looking for savings if it meant more frontline services as a result.

"I'm all for better procurement and less bureaucracy - what I won't allow is any cuts to frontline services," Ms Meagher said.

"I won't rule out a reduction in the numbers of administrative staff and management but let's be clear - there will be no cuts to the number of frontline doctors, no cuts to the number of frontline nurses and no cuts to the number of hospital beds."

Ms Meagher said it was apparent that management practices at Royal North Shore Hospital could be improved in a range of areas including financial management.

"I've given new Area Health Service chief executive Matthew Daly one month to start to turn around the performance of Royal North Shore Hospital," Ms Meagher said.

"That's why we've put a broom through the senior management of this hospital and the Area Health Service.

"Where a hospital is operating over budget - we work with the management to establish opportunities for improvement.

"I am working closely with the Department of Health and the new management team at the Northern Sydney Central Coast Area Health Service to identify areas at Royal North Shore Hospital where other hospitals are doing things better and to find ways to implement those processes over time."

For a range of health information, go online to www.health.nsw.gov.au