Media Statement - 8th November 2007
The Howard Government’s refusal to fund its plan for 750 hospital boards across the country will force cuts to frontline services.
Federal Labor has calculated that the boards policy could cost up to $1.2 billion – or more than 1 million hospital bed nights.
This would lead to serious cuts to frontline health services.
After eleven years, the Government has no plans for health – just a plan to impose an extra level of bureaucracy and cut frontline services.
These revelations have forced the Government into another embarrassing backdown.
After originally saying hospital board members would be paid $10,000 each, the Government is now saying they will be paid nothing at all:
“we expect that people will be willing to be part of a hospital board as a voluntary and honorary contribution to their community'' - spokeswoman for Tony Abbott, The Australian
This follows Mr Abbott’s two backflips on whether every hospital would have a local board. He originally said all hospitals would have boards. Then he said only “decent-sized hospitals” would have boards (Oct 18). Then he changed his mind again, saying "Now I think every public hospital should have boards." (Oct 31).
Not surprisingly, Mr Abbott has now made sure his original hospital board press release is not available from his website or the Department of Health website.
Based on what Mr Abbott has said, and on the actual cost of hospital boards in Victoria, Mr Howard and Mr Abbott’s local boards scheme could cost between $375 million and $1.2 billion over 5 years.
$1.2 BILLION (based on the actual cost of existing boards in Victoria)
The cost of metropolitan health boards in Victoria are: up to $50,000 per year for the Chair plus up to $30,000 per year for each board member.
This would imply a cost per board of $320,000 per year, or $240 million per year for Australia’s approximately 750 public hospitals.
Over the five years of the next Australian Health Care Agreements, this would cost the Commonwealth Government around $1.2 billion.
The real cost to Australian families of this $1.2 billion bureaucracy would be:
- Around 1.2 million hospital bed nights; or
- Over 90,000 hip replacements;
- Over 4 million dental consultations; or
- Around 26,000 extra graduate nurses.
$375 MILLION (based on Tony Abbott’s comments)
Tony Abbott has suggested that each board member (including the Chair) be paid around $10,000 per year, which he describes as “peanuts”.
This would imply a cost per board of $100,000 per year, or $75 million per year for Australia’s approximately 750 public hospitals.
Over the five years of the next Australian Health Care Agreements, this would cost the Commonwealth Government $375 million.
The real cost to Australian families of this $375 million bureaucracy is:
- Around 375,000 hospital bed nights; or
- Almost 30,000 hip replacements; or
- Around 1.3 million dental consultations; or
- Around 8,000 extra graduate nurses.
The real cost of Mr Howard and Mr Abbott’s old, tired idea of local hospital boards is fewer frontline health services for ordinary Australians.
Federal Labor believes there are higher priorities in our health system than yet another layer of costly bureaucracy.
Federal Labor will end the buck-passing in health. We have already announced a $2.5 billion national plan to improve health and hospitals across the country.
This is another Government health policy shambles, made up on the run with the facts changing every day.
Federal Labor calls on Mr Abbott to:
- release the details of his policy
- explain how much it will cost
- explain the contradictions