Health Minister Michael Ferguson says the government is making the best of its funding situation amid claims of health budget cuts from the Australian Medical Association.
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The AMA and health analyst Martyn Goddard released data on Sunday that showed funding for patient care in Tasmania’s hospitals would fall short of projected costs by 7 per cent in the next financial year and 30 per cent over the next four years.
Next year’s shortfall was estimated at $97 million despite a funding increase in real dollar terms.
“For the coming financial year, nominal funding for patient care will increase by 0.9 per cent in nominal dollar terms,” Mr Goddard said.
“But when costs are taken into account – price inflation, new drugs and ever-increasing patient numbers ‒ this translates into a 7 per cent cut.”
AMA state president Tim Greenaway warned of a subsequent reduction in patient services and staff.
Mr Goddard said there were already 179 fewer full-time equivalent doctors than in 2011.
“Doctors and nurses just can’t work any harder than they do now,” Dr Greenaway said.
“They’re already pushed to the limit.
“The problem with Tasmanian public hospitals is capacity, not inefficiency.
“Tasmania’s public hospitals will no longer be in any condition to give the people of this state the medical and surgical care they deserve as the citizens of a rich and developed country.”
Mr Ferguson pointed out the government had acted to ease pressure in the Launceston General Hospital emergency department on Saturday, including employing more nurses and opening more beds, and was continuing to improve the emergency department at the Royal Hobart Hospital.
“Despite the state budget losing more than $500 million in GST, the Hodgman Liberal Government is still investing a record $6 billion in health over four years, including $51 million more added in the recent budget,” he said.
“We are working with all stakeholders to implement our plan to fix the broken health system we inherited, and I again invite the AMA to work with us constructively on this. Dr Greenaway’s comments today are disappointing because we cannot simply spend money we don't have and the record amount we do have needs to be used carefully to get the best for our community.”
