Liberals slam ‘outrageous’ $956m SA Health overspend revealed in Auditor-General’s annual report

The Liberal leader says shocking new health budget figures show the government has failed in a crisis.

SA Health’s budget blew out by $956m last financial year, the Auditor-General has revealed.

The huge overspend follows a $874m blowout the previous year.

In his annual report tabled in state parliament Auditor-General Andrew Blaskett blames salaries and services for the situation.

“Expenditure on salaries and wages and supplies and services were the major contributors to the unfavourable budget outcome,” his report states.

“SA Health’s consolidated entity total expenditure for the year was $9.2 billion. This exceeded the original 2023‐24 State Budget estimate by $956 million, an 11.5 per cent overspend.

“This is in line with last year when total expenditure exceeded the original 2022‐23 State Budget by $874 million, an 11 per cent overspend.”

The report noted information provided by SA Health shows there was an increase in inpatient activity of 4.3 per cent from last year and on average, patients admitted to hospital are staying longer than they did four years ago.

Opposition leader Vincent Tarzia. Picture: Roy VanDerVegt

Health Minister Chris Picton. Picture: Brenton Edwards

The report also shows SA Health’s electronic patient record system rollout to metropolitan facilities was completed in the period 2011 to 2023 “at a cost of $647.5 million, $239.5 million over the original budget of $408 million.”

Opposition leader Vincent Tarzia called on the government to explain the pattern of over overspending.

“An overspend of this magnitude is outrageous,” Mr Tarzia said.

“This Labor government has failed the people of South Australia. The SA Health system is in crisis.

“The people of South Australia deserve more from their Government than spin in the form of 8-page newspaper lift-outs and television ad campaigns that tell everyone how good the health system is."

The report estimated SA Health would need to cut 2186 staff to return to budget.

Health Minister Chris Picton accused Mr Tarzia of wanting to “take an axe to the health system.”

“This is the same old Liberals – advocating for huge cuts to health,” he said.

“Cuts to doctors, cuts to nurses, cuts to ambos, cuts to all those healthcare workers that South Australians rely on in an emergency.

“Vincent Tarzia needs to outline which doctors, nurses and hospital beds the Liberals want to cut. The Malinauskas government is prioritising investing in health by hiring more doctors and nurses and building hundreds of extra hospital beds.”