Keith Hospital funding standoff as Minister Wade blasts the board

Health Minister Stephen Wade has blasted the board of the private Keith and District Hospital for demanding yet more money and threatening to shut down services in eight days, saying it would not be fair to other country hospitals.

Keith and District Hospital.

• Keith Hospital: Give us cash or we’ll close

Health and Wellbeing Minister Stephen Wade has blasted the Keith and District Hospital board over its demand for more cash combined with a threat to shut down services after next Sunday if none is given.

The private hospital with a 24/7 emergency department gets $1 million a year from the government and was given an extra $400,000 in December after running short, but this week took to social media to demand more money or face closure from March 31.

Its cash flow problem is partly due to the high cost of paying locums because of difficulties finding GPs — a problem faced across many rural areas.

Mr Wade has sent board chairman Richard Vickery a letter expressing his disappointment they made public comments on the issue without contacting him and accused the board of making inaccurate public statements.

“The KDH is not a public hospital, it is not run by the State Government. The board is responsible for its financial management,” he wrote.

“We have provided funding over and above what had been expected for a non-public hospital and I must ensure the responsible use of taxpayers’ funds.

“I cannot favour one town over another — it would not be fair to other towns across country South Australia where there are 60 GP vacancies.”

Mr Wade stressed it had been made clear at the time the $400,000 emergency funding was granted that it was expected to last for the rest of the financial year.

“The State Government’s position has been clear, consistent and generous,” he wrote.

READ: MINISTER WADE’S LETTER

The standoff comes after the board put a notice on Facebook saying: “The Keith Hospital board is calling on the state government to honour their commitment to provide adequate funding to ensure the continuation of hospital services including the vital 24/7 emergency department past 31 March.”

The hospital has had a turbulent year, sacking operator Tristar after it was unable to provide two GPs five days a week plus 24/7 on call availability as contracted.

Opposition health spokesman Chris Picton warned that if the hospital were to close due to lack of funding it would be “a massive hit to health services in the region”.

The hospital expects to have a permanent doctor starting in June and also is undergoing a $3.6 million expansion and redevelopment of its aged care facility which will provide 10 additional beds and extra facilities.