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Victorian Public Hospitals hit trouble

Victoria’s public hospital system was put on the critical list today as the Auditor’s General’s report on Public Sector Agencies revealed the overall financial position of public hospitals had deteriorated significantly in the year to 30 June 2002.

AMA Victoria President, Dr Mukesh Haikerwal, said the report highlighted the serious under-funding of public system and indicated that urgent action is needed before patient care is compromised.

"We are now looking at a situation where 9 public hospitals are showing signs of financial trouble with a further 15 heading in the same direction, and this includes all the major metropolitan hospitals" said Dr Haikerwal.

"AMA Victoria has argued consistently over a number of years that funding needs in the public hospital system must be regularly identified and provided for."

"Before November’s election we made it perfectly clear that a major shortcoming in the method of public hospital funding existed in the apparent unwillingness of the State Government to provide funding for replacement of capital and equipment." The depreciation figure of $197 million in the Auditor’s Report is indicative of the size of this annual shortfall.

"Unless this is addressed hospital services simply cannot be maintained."

"The Victorian Government must make good on its promises to Victorian citizens"said Dr Haikerwal.

The Auditor’s General Report comes hot on the heels of news received today by AMA Victoria that a Freedom of Information request for a report submitted in March 2001 into the exact state of medical equipment in Victorian public hospitals had been denied by the Health Department.

Dr Haikerwal noted with disappointment that this was the second time AMA Victoria’s request to analyse the report had been dismissed by the Department

"Given the information provide by the Auditor General today I would think that allowing the public to see the contents of report from Professor Ian Brown, is essential."

"Surely it is our right as Victorian citizens to know the true state of the equipment in which we trust in times of emergency and when our loved ones are sick."

The announcement from the Auditor General’s office is also particularly timely given the current renegotiation of the Australian HealthCare Agreements said Dr Haikerwal.

"The Board of AMA Victoria has only today supported resolutions about the obligations of the commonwealth and State Government with respect to the Australian HealthCare Agreements."

"There is to be no confusion that the Victorian and Federal Government must ensure they meet their obligations to the public hospital system by guaranteeing indexation of its funding stream at the level requested by the States of the Commonwealth (i.e. at least 7.96% pa)." said Dr Haikerwal

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