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Home > Ministers > The Hon Tanya Plibersek MP - Minister for Health > Media Hub > Transcript - Casey Hospital - Health Funding - 21 February 2013

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PDF printable version of Transcript - Casey Hospital - Health Funding - 21 February 2013 (PDF 209 KB)

21 February 2013

E&O Only

Speaker: So ladies and gentlemen, the Honourable Tanya Plibersek has got a few words to say about Commonwealth funding to hospitals.

Tanya Plibersek: Okay, excellent. I'm here with my very good friend and colleague, Laura Smyth and George Braitberg, who is going to talk to you a little bit about emergency services here at Casey Hospital. This is a very exciting day for the Victorian Health System. There has been a lot of to-ing and fro-ing over recent months between the Commonwealth and the State Government. I don't want to talk about that today. I want to talk about what this means for Victorian patients.

Right here Casey Hospital was looking at having to close their Emergency Department overnight. They will no longer have to do that. Right across the State of Victoria we've had reports of services being cut, jobs being lost, elective surgery waiting lists growing, surgeries being cancelled. All of those must now be reversed. What has happened today is the Commonwealth Government has stepped in and said to the Victorian Government: We will take Commonwealth funding that was due to go to your Treasury and redirect it into the hands of frontline hospital administrators.

We have done that because we are very concerned about patient care. You've heard here that one of the proposals was to close emergency overnight. There is also a $22 million plan here to provide 30 extra sub-acute beds. We need to make sure that this hospital has the staff and the resources to support the extra beds that the Commonwealth Government is opening or paying for here at this hospital.

Similar stories right across Victoria. In Southern Health alone this means $13.6 million restored to Southern Health. It is a very important contribution to security for the staff and patients here. The patient experience is the one that I have been most concerned about. Patients have been told that their elective surgery will be delayed. Patients have been told that they may no longer have an emergency department to come to, that they will miss out on treatment.

Doctors and nurses, health professionals have been distressed right across the system because their main concern is for patient welfare too. And this was a cruel series of cuts and I am delighted today to be able to say that the Commonwealth Government has stepped in to ensure that the patients of Victoria get the care they need.

Question: Does this mean that you will reinstate funding to other states, such as Queensland?

Tanya Plibersek: Well, the Prime Minister has written to other states and said that we are prepared to take similar action in other states. That means redirecting funding that would otherwise go to the Treasury in those states to consolidated revenue, redirecting that into the hands of frontline hospital administrators. I have to say, though, that the Victorian Government have been particularly bad of all of the states in making hospital administrators just aware of these changes.

They have passed on $107 million of cuts at a time when Commonwealth funding has grown every single year. It has been very distressing for the staff, it has been very distressing for the patients and it has been particularly bad in Victoria. The Victorian Government, I think, have played politics with the health and safety of Victorian patients and it has got to stop.

Question: So you've told us about the arrangements for this financial year, what about the remaining three years in which the funding was cut from the Federal Government in relation to the population figures?

Tanya Plibersek: Well, this is the line of the Victorian Government. Funding will increase by over $900 million to the Victorian Government for our share of hospital running costs alone, $900 million more over the next four years. And, in fact, the Victorian Government got $196 million more from the Commonwealth this year to run hospitals than they did last year.

We will see a 26 per cent increase over the next four years. Funding has been growing to Victoria every single year and what we've seen during that time is patient results go backwards. There are around 8000 more people on elective surgery waiting lists today than when Ted Baillieu became Premier. And, in fact, the Victorian Government have been hiding the elective surgery waiting list data for half a year now. They haven't released September quarter elective surgery data. They haven't released December quarter elective surgery data.

The last information we have is from June last year and what that information showed was that they did three and a half thousand fewer surgeries last year than the year before. Now, when Commonwealth funding is going up every year by hundreds of millions of dollars, when the Victorian health system is $1.2 billion better off today than if they had stayed with Tony Abbott's old funding formula, how can it be that patient results are going backwards?

Elective surgery waiting lists are longer and emergency waiting times are worse than when Ted Baillieu took over.

Question: Minister, do you…

Question: But there was 475 million due to come out as a result specifically of the population figures. Will you restore that full amount rather than just the 107?

Tanya Plibersek: No. There were - the funding to states is based on three factors. It is based on population figures. It is based on health inflation. It is worked out by the Australian Institute of Health and Welfare and it is based on a technology factor. Population has grown, not as quickly as we expected. Health inflation is at the lowest it has been in 10 years because the Australian dollar is very strong. When we are buying technology and medicines and equipment from overseas it is costing us less because of the high Australian dollar. That means that health services are saving money right across Australia.

This is an agreement that Ted Baillieu went into with open eyes. He said it was a great deal for Victoria. He said that it's a much better deal than the previous State Labor Government had been able to arrange and he is right. That is - you know, the thing he has been right about is that the Victorian system gets $196 million more this year for our share of hospital funding than it did last year. It gets $900 million more over the next four years.

Question: Sorry, I'm unclear. Will you do the same thing in the following few financial years that you're announcing today?

Tanya Plibersek: We won't because the Victorian Government will get $900 million over the next four years in extra funding. We don't expect to have to pay it in this same way to hospital administrators. But, of course, we are open to doing that if we have to.

Question: Will we find ourselves in the same predicament as we did a couple of weeks ago - or just yesterday, that we don't have that money and you will have to step in again?

Tanya Plibersek: Well, look, if the Victorian Government can't manage with a health system that is growing by $900 million over the next four years then, you know, pity help the people of Victoria. This is a government that has been getting extra money from the Commonwealth every year, waiting lists have been getting longer, emergency waiting times have been getting worse, the people of Victoria have had elective surgery information that was always made public, always made public in the past, hidden from them now for six months.

That information would show that the numbers have been getting worse over the last six months. Not over the last couple of months, as they have been getting worse now for the last two years. Eight thousand more people on waiting lists today than when Ted Baillieu took over. However, I think we're focussing again on a story that has been told in the past and my fight has been with the Victorian Government. It has not been with the hospitals of Victoria

And I am absolutely thrilled today to be able to come and visit a fine hospital with my colleague, Laura Smyth and talk to the staff here, give them some security about their ability to treat patients in the way they want to, to provide that extra elective surgery, to make sure that they are getting decent emergency care. They are doing a great deal of work here at Casey Hospital to redesign their emergency department so that patients don't wait in the way that they have been in years in the past and I think it is great news for staff here and, most importantly, it's great news for the patients of Victoria.

Question: Does this set a precedent for bypassing State Treasuries with Federal funding in the future?

Tanya Plibersek: Well, the Prime Minister has written to other states and said that if we see it as necessary we're prepared to do this in other states as well. It is not something that I prefer to do. It is not something that I take any pleasure in doing. It is, to my mind, an extraordinary circumstance here in Victoria. But if State Governments are going to play politics with the health and safety of patients then there will be times when I need to step in.

Question: So are you saying that you will restore funding to other states as a result of this funding calculation for this financial year via a direct funding arrangement to hospitals?

Tanya Plibersek: We've said that we are open to doing that. And I have to be very clear. This is money that is not coming from the Federal Government to the Government of Victoria. This is money that would have been paid to their Treasury. One example is a $55 million payment that the Victorian Government was eligible for if they got their occupational health and safety laws in line with other states. It is part of reward funding for a seamless national economy national partnership.

Instead of giving that money to the Government of Victoria we are going to give that money to hospital administrators to put directly into frontline services. This is money that the Victorian Government would otherwise have been eligible for that we are redirecting from their Treasury into frontline health services. And if we have to do that in other states we're open to it. But it's a redirection of their state funding to their hospital services. It is not endangering…

Question: But when will you be making a decision about that? You say that you're open to it. Does that mean that you will do it?

Tanya Plibersek: No. Open to it means that I might do it if the circumstances demand it.

Question: What do hospitals such as The Royal Children's Hospital do if they have already let staff go as a result of these funding cuts? It is going to take some time for them to reverse the cut-backs that they have had to make.

Tanya Plibersek: Yes. The vast majority of hospital administrators I've spoken to haven't let staff go. They have reduced hours. They have reduced surgeries. They have made other changes, but they haven't let staff go.

Question: Some have, though.

Tanya Plibersek: Yes. In the vast majority of cases they haven't, so they can ramp up activity again. Those hospitals that have let staff go can re-employ if they wish and they can increase the level of activity that they have been doing with existing staff. Staff have been asked to take holidays in many cases. Weekend facilities have been closed. You know, I have had quite extensive conversations with hospital administrators across Victoria and they are confident that they can reinvest this money quickly and with great benefit for the patients of Victoria.

Question: Minister, isn't that the usual arrangement that this funding goes direct to hospitals via the funding pool, so why are you suggesting that it's an unusual arrangement to put money into that pool and not give it to the State Government?

Tanya Plibersek: Well, it's unusual because the way hospital funding works is we have a deal with the Victorian Government that says: This is how health funding is indexed. We work out an amount for the Victorian Government and they tell us - they give us a list with every hospital and the money they want to go to that hospital. They are deciding hospital by hospital how much funding the hospitals get. They have also decided in this case hospital by hospital how much they will cut from Victorian hospitals.

So using that list of cuts that the Victorian Government have decided to make to Victorian hospitals we will restore that funding using funds from other parts of the Commonwealth support for Victoria.

Speaker: Last question.

Question: You say that Ted Baillieu has been looking for people to blame over this whole situation and you say that he is the one to blame. But by virtue of this announcement today aren't you taking responsibility for what has happened?

Tanya Plibersek: Do you know, I don't - I don't really care about the interpretation of this and I don't think the patients of Victoria do either. What I care about is making sure that Casey Hospital can keep its Emergency Department open overnight; that hospitals that have cancelled elective surgery can reschedule that elective surgery; that hospitals that have closed their adolescent mental health units over the weekend can reopen those units over the weekend.

These cuts have been cruel, they have been disastrous for patients, they have been stressful for staff and this is the end of it today. We have ensured that money will go directly into the hands of hospital administrators so that they can give the patient care that they truly sincerely want to give their patients and so that the staff can have security about their jobs too.

Speaker: Okay, thanks, everyone.

Tanya Plibersek: All right. You want to hear now a few words from Laura.

Laura Smyth: Thanks very much, Minister. This is a really important day for Casey Hospital, just as it is an important day for hospitals, I would expect, right around the State of Victoria. I know that this is something that residents have wanted to see fixed and I would really like to thank very much the Minister for her intervention and her leadership in providing this funding to hospitals like Casey and I certainly know that it will give a bit more confidence and security not only to staff at Casey Hospital but also to patients and to residents.

And I think, frankly, it now shines a spotlight on the Victorian Government. I think people realise that federally this Labor Government has certainly put its money where its mouth is on health. We've increased substantially funding to the Victorian health budget across the next four years. It is now time for Ted Baillieu and David Davis to stop expecting that their own cuts will be camouflaged in some kind of debate about health cuts. It is time for them to also show a leadership role in relation to this issue.

Question: What do you say to suggestions that in the lead up to an election in a marginal set there is an element of pork-barrelling about this decision?

Laura Smyth: Thanks Labor federally has continually provided additional funding to the State of Victoria. Labor has increased the funding to the State of Victoria and this is a funding decision that was reached some time ago, this increased funding, so I certainly don't accept any suggestion of that kind.

Speaker: Right. Do you want to hear from George as well? It is always good to get a doctor's perspective.

Speaker: Yes. George, could I just ask you to say your name and title for us and spell your name as well before we start?

George Braitberg: Sure. George Braitberg, Professor of Emergency Medicine for Southern Health, B-R-A-I-T-B-E-R-G.

Speaker: I don't know if you want to start now.

George Braitberg: Well, I thought what I would like to do is actually just partially read out a statement in terms of the response to the Minister and her announcement. So Southern Health, the Chief Executive and all our staff, welcome the Minister's announcement that funding has been reinstated for this financial year. This gives us certainty in our planning for this financial year. As a result we are pleased to say that we will no longer be progressing plans to close the Casey Emergency Department overnight.

In addition, we will also be able to resume elective surgery as we redeploy and reassign our staff back to their core task. This is good news for our patients, for our staff and for the community.

Question: How many beds have you had to close and how many surgeries have you had to delay since these cuts started flowing through?

George Braitberg: I think rather than answer that question specifically, because there are other people in the organisation who can do that, I think that my main message is about the Emergency Department and how we're certainly pleased that we will be able to continue operations on a 24 hour basis and provide emergency care the way that we want to provide that care.

Question: You say it gives you certainty, but do you know what position you will be in in the next financial year or the one after that when there has been no certainty around the funding arrangement?

George Braitberg: I think again that's for the Minister and others above my station to sort out, but at this point in time we're not progressing any further plans to close the Casey Emergency Department overnight.

Question: Has there been a sense of frustration that hospitals have been caught in the middle of a very bitter fight between the Federal and State Governments?

George Braitberg: I think probably the word is uncertainty, as there has been that uncertainty. As staff we would like this to be resolved. We want to get on with our job of just treating patients and not having to worry about those other issues. So, again, with this announcement we can get on and do that.

Question: What has been the atmosphere amongst staff over the past few months that these cuts have been flowing through?

George Braitberg: Well, I think there is obviously concern. We want to be able to deliver the care that we want in whatever capacity we can do it and we need the tools to be able to do that, so restoring that ability to us is really what we're all about.

Question: What was the reaction among your staff to this news?

George Braitberg: Smiles all around.

Question: Are you fearful of a repeat of a funding impasse in future?

George Braitberg: From a clinician's point of view, from someone who sees patients and just wants to get on with their job, I just want to make sure that there's certainty in the system, however that's delivered.

Speaker: Thanks, everyone.

Speaker: Thank you very much.