23 December 2004

Port Macquarie Base Hospital

Following a landmark agreement, the NSW Minister for Health, Morris Iemma today announced the signing of a deal that will see health services at Port Macquarie Base Hospital returned to public operation early in the new year.

“The NSW Government will make a cash payment to the Mayne Group of $29 million and will accept employee liabilities estimated at $6 million for annual and long service leave and workers compensation.

“This payment will allow the operations of the hospital to be returned to public operation resulting in improved services for the people of the mid North Coast,” Mr Iemma said.

“The deal struck by the Coalition Government in 1992 which resulted in the private ownership of Port Macquarie Base Hospital was the one of the worst examples of health privatisation in Australia.

The Coalition Government sold out their own constituents who have been paying for the facility ever since,” said Mr Iemma.

“It’s no wonder that when the Auditor General explored the Coalition’s deal in 1996 he said that NSW was: “paying for the hospital twice then giving it away”.

Mr Iemma said today’s signing was a major step forward in mending the blunders made by the previous coalition government and returning the hospital to public hands.

“Discussions with Port Macquarie Base Hospital Pty Ltd are continuing regarding the transfer of the land and buildings to the Health Administration Corporation.

“I am confident that an agreement will be reached regarding the State Government ownership of the entire operations, facilities and land at Port Macquarie,” Mr Iemma said.

The transfer of operations will bring significant advantages to health services in the region including:

• The assurance that public hospital services will continue beyond 2014 when the services agreement with the private operator was to expire.
• Improved clinical services resulting from better networking with other hospitals in the North Coast Area Health Service.
• Greater certainty for the establishment of radiotherapy, mental health and other services.
• Improved control from the North Coast Area Health Service over the type and volume of services available to the local community – without the annual fight for additional funding not anticipated by the contract.

“Staff currently employed at the hospital will be transferred under terms at least as favourable as their current arrangements.” Mr Iemma said.

The Minister said that he expected completion of contractual arrangements in early 2005, subject to appropriate due diligence and conditions of sale being satisfied.

Completion of the contract will mean the settlement of the legal action brought by both parties in the Supreme Court of NSW.

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