Nick Xenophon (SA, Independent) Share this | Link to this | Hansard source

My question is to Senator Ludwig, Minister representing the Minister for Health and Ageing. The South Australian government announced in last year’s state budget that it is cutting its funding for the Keith and District Hospital from $670,000—already $200,000 below the hospital’s requirements at $300,000. The hospital will now be forced to close in April of this year unless further funding is found. In a letter to Mr James DeBarro, chair of the hospital’s board of management, Minister Roxon stated that the government will ensure funding reflects the higher costs associated with delivering services in regional and rural areas of Australia, including providing block funding where appropriate. Minister, will the federal government intervene to ensure that Keith hospital has access to appropriate funding?

Joe Ludwig (Queensland, Australian Labor Party, Manager of Government Business in the Senate) Share this | Link to this | Hansard source

I thank Senator Xenophon for his question and his continued interest in South Australia’s hospitals. Minister Roxon and this government understand the importance of local private hospitals to regional communities and the role they play in keeping sick and aged patients in their local areas. However, on behalf of the minister, the level of subsidy the South Australian government pays to community private hospitals such as the Keith and District Hospital is clearly a matter for the state government of South Australia.

I note that the letter received by Mr DeBarro was from Ms Alison McCausland, business manager of the Acute Care Division of the Department of Health and Ageing, who was writing on the minister’s behalf. The departmental response and the section Senator Xenophon refers to explain the government’s National Health and Hospital Network reforms and how they will relate to funding for public hospitals. The Commonwealth continues to support private hospitals through its funding contribution of private health insurance, Medicare, PBS, DVA, aged care and some capital works projects. The Keith hospital received aged-care funding in 2009-10. The Keith hospital received over $770,000 in 2009. We also provided the Keith hospital with $500,000 to build the new Hill Wing. I understand that the South Australian government are conducting meetings with the Keith hospital to help them restructure and reprioritise their services. I would also encourage them to work with the department of health to maximise the existing Commonwealth funding streams. I understand Senator Xenophon has also met with Minister Butler and the office of Minister Roxon. (Time expired)

Nick Xenophon (SA, Independent) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Directly on the issue of an area where the Commonwealth does have direct responsibility, the planned closure of the hospital would directly impact on the integrated aged-care facility at the hospital, with at least 14 elderly residents—some of them with significant health issues—facing moves to accommodation located up to 300 kilometres away. Given that aged care is a federal responsibility, what actions will the minister take to ensure these forced moves do not occur?

Joe Ludwig (Queensland, Australian Labor Party, Manager of Government Business in the Senate) Share this | Link to this | Hansard source

At the outset, I will also be asking Minister Butler and Minister Roxon to look at the question that has been asked by Senator Xenophon to see if there is anything they can add. The Keith and District Hospital currently receives significant funding from the provision of aged-care services. In 2009-10 the Keith hospital received over $770,000, including an ongoing viability supplement in recognition of the difficulties of scale that smaller regional aged-care providers face. I understand that the hospital has received suggestions from South Australian Country Health about how they may be able to prioritise certain services, such as aged care, and maximise their funding from these streams. I would also encourage the hospital to work through these options further with the South Australian government and the South Australian office of the Department of Health and Ageing. I am advised that the South Australian departmental office—(Time expired)

Nick Xenophon (SA, Independent) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. What steps will the minister be taking to ensure that Keith and the surrounding communities, and the drivers and passengers in the four million driving trips that occur on the Dukes Highway each year past Keith, are not disadvantaged if the hospital is forced to close, given that there will be a 180-kilometre gap between accident and emergency facilities?

Joe Ludwig (Queensland, Australian Labor Party, Manager of Government Business in the Senate) Share this | Link to this | Hansard source

In answering this, I acknowledge that Keith hospital is in a central location on the highway and it does play an important role in providing acute care to any accidents that may unfortunately occur. I trust the hospital will be able to restructure its services and staffing, as well as maximise access to its existing funding streams, to continue to provide these important services to the area. The Department of Health and Ageing will be able to discuss further possibilities with the hospital executive.

Going back to the earlier response I made, I am informed that the South Australian departmental office has contacted the hospital executive to suggest a meeting to be able to progress some of these matters. I trust this will occur in the near future.