200 jobs and 10 collection centres are on the line in SA Pathology overhaul

More than 200 jobs may go and 10 unprofitable collection centres shut as the State Government considers a consultant’s recommendations into an overhaul of SA Pathology.

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An estimated 204 jobs would go over three years and 10 unprofitable collection centres would close — but five new ones would open — under recommendations for a major overhaul of SA Pathology.

The long-awaited PricewaterhouseCoopers report into the troubled service’s commercial competitiveness recommends giving it 12 to 18 months to improve efficiency.

It shows SA Pathology failing to meet savings targets factored into the last State Budget, likely to save only $2.3 million next financial year compared to a target of $25 million, and is scathing of its financial management.

It identifies potential annual savings of $35 million a year by 2022 and makes five major recommendations which the government has accepted or accepted in principle.

The report does not name the 10 service centres it suggests should close — SA Pathology has 90 centres across the state and government officials say any closures would need to take into account impact on the public rather than just profitability.

South Australian Health Minister Stephen Wade. Picture: AAP Image/David Mariuz

Health and Wellbeing Minister Stephen Wade guaranteed there would be no privatisation before a review in 12 months and no doctors or nurses would lose their jobs, leaving medical scientists’ and technicians’ jobs on the line.

“While the PwC report doesn’t quantify a staffing impact, it is clear that SA Pathology has more staff than required across the business,” he said.

“At this stage, a high-level analysis of PwC’s report over three years estimates an optimal SA Pathology workforce would reduce to around 1200 from its current workforce of 1400.

“While any job losses are disappointing, this is less than the 332 positions the former Labor Government planned on axing from SA Pathology.

“What we need is demonstrable proof SA Pathology is up to the task of providing value for money, high-quality services.”

The government has started the overhaul by splitting the executive director position into two roles — one clinical headed by pathologist Dr Tom Dodd and one focused on the business side of the service headed by senior public servant Julienne Tepohe.

Mr Wade noted SA Pathology was a $257 million a year business previously run by pathologists.

Professionals Australia SA director Sarah Andrews at Parliament House. Picture: Brad Crouch

Opposition health spokesman Chris Picton accused the government of treating the workforce with contempt by announcing the estimated job cuts on radio and of trying to bury the report by releasing on Federal Budget day.

“It seems clear the government’s plan is to privatise this service,” he said. “These cuts are going to mean worse services and more delays for patients.”

The technicians’ union Professionals Australia SA director Sarah Andrews called the guarantee of no privatisation for 12 months a “stay of execution”.

“The worrying thing is that they will make it neat and tidy over the next 12 months to make it good for sale,” she said.

“If the service is privatised people will get sicker due to delays in getting tests done leading to delays in diagnosis and treatment.”