The Tasmanian Minister for Health, Michelle O’Byrne has outlined a number of spending cuts to the state’s health sector, following the austere state budget that called for over $100 million to be pulled from state’s health system.

 

She said the department had been working extremely hard to identify ways of delivering  the savings from the $1.7 billion Health and Human Services budget.

 

“It gives me no pleasure to be detailing these savings initiatives today, but the State Government is determined to deliver on the tough decisions needed to address a $1.7 billion shortfall in GST and state revenue.

 

“To fail to identify and implement the necessary savings strategy would not only have dire consequences for our State, but it would risk the sustainability of our entire health system into the future.”

 

Ms O’Byrne said the savings strategies would have impacts.

 

“These decisions are not easy to make. They will have impacts, and we have examined savings across the entire agency.”

 

Ms O’Byrne said the detailed list of savings strategies (attached) was being made public in order to continue to be as clear and open as possible.

 

“In the six weeks since the Budget, almost $50 million has been identified across the DHHS, and more than $12 million in savings have already been implemented.”

 

Ms O’Byrne said the State Government had started by looking to cut red tape and redesign services rather than cut them completely.

 

“We are determined to keep patient care at the very centre of our decision making around these savings strategies.

 

“We’ve looked at how we can work smarter, more efficiently and deliver better value-for-money for taxpayers.”

 

Ms O’Byrne highlighted the following strategies:

 

  • Middle Management Reduction Strategy – by redesigning work and allowing greater levels of autonomy within existing roles, cutting a number of middle management positions, saving $3 million statewide.
  • 10 per cent reduction in spending across non-service delivery Departmental Units – requiring all work units within the agency to reduce their budgets by 10 per cent, saving $5.8 million.
  • Review the use of telephones and Mobile phones – saving some $750,000 per year, or $2.25 million over the next three years.
  • Review the DHHS motor vehicle fleet – to utilise cheaper vehicles, saving $647,000.

 

Ms O’Byrne said all CEOs across the DHHS would be making detailed announcements to staff about how the savings strategies affected each area.

 

“From today, I will be asking the CEOs of our hospitals and various health services to communicate directly with staff and the media to help the community understand our savings strategies.”

 

“I have full confidence in the CEOs and our health employees to work with all stakeholders as these savings strategies are implemented.

 

“In a number of places, we have been able to identify efficiencies that will mean the burden of saving money is shared.

 

Ms O’Byrne said that the identified savings released today did not meet the full $100 million target.

 

“We are continuing to work through further options for achieving the remainder of the savings.

 

“This information will be made available as soon as it is finalised.”

 

“This process requires a high degree of patience and understanding from DHHS employees and the public generally, and I thank everyone for recognising this as we continue to work through the savings process.”

 

More details of the savings can be found at http://www.dhhs.tas.gov.au/about_the_department/savings