19 November 2004

Health reforms pass Upper House

The New South Wales Government’s legislation to restructure the administration of the NSW health system today passed the Upper House.

Health Minister Morris Iemma said the bill paved the way for the consolidation of 17 Area health services into eight, with an estimated $100 million in administrative savings to be redirected into enhanced clinical services.

“This is an important day for the NSW Health system,” Mr Iemma said.

The Minister said he was dismayed but not surprised that the NSW Opposition had voted against the proposals that will direct additional resources into frontline health care.

“The Opposition is quick to complain, and quick to condemn health care workers, but when they had the chance to vote for a series of initiatives that will redirect millions of dollars from administrative savings into frontline clinical services – they voted against it.

“Instead the Opposition wants to re-establish hospital boards, a $18 million dollar exercise in bureaucratic empire building.

“That’s $18 million that could fund the wages of an additional 320 nurses or 120 medical staff specialists.

“John Brogden and Barry O’Farrell want to redirect financial resources away from frontline care and put it back in the boardroom.

“The Government has a detailed plan to enhance clinical services, eliminate wasteful bureaucratic duplication and give local communities a stronger voice in how their local health services are run.

“Today’s vote by the Legislative Council means we can now get moving on implementing our reforms, building up our health system and enhancing clinical services for patients,” Mr Iemma said.

Area Health Services are currently in the process of delivering Clinical Service Plans that will be a blueprint for future health care delivery.

“These plans will set out how we reinvest our savings into the health system by identifying priority areas,” Mr Iemma said.

The Health Services Amendment Bill also sets out a structure to ensure that local communities continue to have their voices heard in local decision making.

“We have enshrined in legislation the creation of Area Health Advisory Council’s that will give community and clinical leadership direct input to area chief executives,” Mr Iemma said.

The new Area Health Service structure and boundaries will come into effect on January 1 2005.

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