The Tasmanian State Government has detailed how the state’s Department of Health and Human Services will meet the remaining $30 million of the $100 million savings task set out in the State Budget.

 

“Based on preliminary advice from the Business Control Team, I will be asking the incoming Secretary to put a new administrative structure in place within the Department which will result in a reduction of up to 150 positions,” State Minister for Health, Michelle O’Byrne, said.

 

The State Government has announced reductions to elective surgery funding this financial year.

 

“It is a decision that will allow us to meet this year’s budget while continuing to implement the systemic reforms that will deliver long term sustainability for our health system.”

 

Ms O’Byrne said the Northern Area Health Service will reduce elective surgery volumes and save $8.5 million, the Southern Area Health Service will reduce volumes to save $10.7 million and the North West Area Health Service will save $2.4 million.

 

Ms O’Byrne said that the cuts to spending was a result of the State Government’s decision to keep the state out of net debt.

 

Ms O’Byrne said the elective surgery savings added up to just over $21.5 million.

 

Several of the final strategies are linked to the reductions in elective surgery volumes and will be finalised as the Area Health Service CEOs consult with clinicians.

 

These include:

  • Reconfigure the Launceston General Hospital’s Ward 4D and consolidate oncology services to save $2.2 million.
  • Change rostering in the LGH ICU to save $1.035 million.
  • Reallocation of beds across the NWAHS resulting in an estimated saving of $1.015 million.
  • Defer the annual leave reduction program and maintain current levels of clinical and management supervision of the communications centre at Ambulance Tasmania for a saving of $870,000.
  • Review non-frontline, education and administrative staffing at Ambulance Tasmania for a saving of $304,000.
  • Deliver savings of $800,000 in Statewide and Mental Health (SMHS) through additional State office efficiencies and a restructure of staffing and management consistent with a 10% reduction of expenditure for non-service delivery units.
  • In SMHS, introduce further efficiencies in operational and staffing costs across all SMHS units in line with wider Agency strategies, to deliver $1.59 million in 2011/12.

A complete list of the Department of Health and Human Services saving strategies can be found at http://www.dhhs.tas.gov.au/about_the_department/savings