SA Health claims taxpayers owed almost $470m over RAH build flaws

SA Health has claimed builders of the new Royal Adelaide Hospital owe taxpayers almost half a billion dollars over faults and failings that include bad food and defective alarms in mental health wards.

• CALHN boss on how she’ll tackle budget blowout and inefficiency
• RAH supplier Spotless loses hospital contracts
• Royal Adelaide Hospital food needs to be better than this
• Report into RAH power loss finds maintenance staff at fault
• $240m SA health budget blowout envelops Royal Adelaide Hospital

SA Health has claimed builders of the new Royal Adelaide Hospital owe taxpayers almost half a billion dollars over faults and failings that include bad food and defective alarms in mental health wards.

Auditor-General Andrew Richardson on Tuesday released a new report into the operations of the new RAH, which confirms disputes are ongoing between the State Government and the private consortium which oversaw the $2.4 billion build.

Auditor-General Andrew Richardson

Health Minister Stephen Wade

The consortium, Celsus, and the State Government were locked in court disputes ahead of the last election before agreeing to negotiations.

Mr Richardson’s report states SA Health is claiming $470 million in faults for which it should be able to withhold payment.

Under the new RAH deal, taxpayers hand over about $1 million a day for 29 years and the consortium builds the hospital and undertakes non-clinical functions including cleaning.

Of the total claim made by the Government, $303 million relates to “quality failures” in orderly services.

That is understood to include complaints about food quality. A further $123 million is linked to defective duress alarms in the hospital’s mental health unit. Other issues include claims of poor cleaning and failure to move patients in required times.

Mr Richardson says Celsus is disputing some claims, and making its own demands.

Health Minister Stephen Wade said the hospital must run effectively.

“We want a hospital that delivers quality health services,” he said.

“We will work within the contract to achieve this outcome to try to minimise the amount of taxpayers money spent on lawyers’ fees.”