Carr takes the knife to NSW hospitals

By Cameron Parker SYDNEY — Breaking yet another election promise, the Carr Labor government has moved to slash $100 million from its hospital funding over the next three years. Some $50 million in cuts will be borne by Royal Prince Alfred and Concord hospitals, two of the state's largest public hospitals. The public hospital system, already drastically pruned by the previous Fahey and Greiner Liberal governments, will be forced to reduce patient services again. According to the October 27 Sydney Morning Herald, St Vincent's Hospital "has axed 300 jobs, closed 18 outpatient clinics, an operating theatre and a ward, and reduced the number of operations, to save just $6.9 million". The government has also introduced the "case-mix" method of funding, under which public hospitals receive a fixed grant to cover costs based on the number of patients they treat for specific illnesses. Hospitals are paid varying fees for specific services provided per patient. This places pressure upon hospitals to give priority to financial considerations in deciding what services to provide. With a flick of his pen, Labor health minister Andrew Refshauge — previously a sworn opponent of case-mix funding — has done what previous Liberal governments tried, but failed, to do in seven years.

From GLW issue 209