SA Health says expert checking its finances may have conflict of interest but can be ‘managed appropriately’
CLAIMS have emerged a consultant checking SA Health finances has a conflict of interest as he also sits on the board of a private pathology firm, amid warnings SA Pathology will be outsourced.
- KordaMentha paid $100k to investigate CALHN finances
- Plan for KordaMentha to run RAH and CALHN finances
SA HEALTH concedes a private consultant in a controversial inquiry into its finances may have a conflict of interest but is confident it can be “managed appropriately”.
Consultants KordaMentha have an $880,000 contract to recommend ways to rein in the Central Adelaide Local Health Network’s ballooning budget deficit — and their report is due to be presented to Cabinet.
CALHN covers the Royal Adelaide Hospital, Queen Elizabeth Hospital and statewide services such as SA Pathology.
The State Government has flagged plans to privatise much of SA Pathology — Treasurer Rob Lucas warned the work would be contracted out unless savings were made and locked in savings of $40 million a year under the forward estimates.
It has now emerged a Korda -Mentha expert working on the review is Michael Stanford, who sits on the board of Australian Clinical Labs, one of the largest private pathology services in the country.
SA Health deputy chief executive Don Frater is aware of the issue.
“We have asked Korda -Mentha to ensure that those potential conflicts of interest are managed appropriately,” he said when questioned by Opposition health spokesman Chris Picton in an estimates hearing.
SA Health chief executive Dr Chris McGowan added: “We know there is a conflict if it is not managed well, so Dr Stanford will have nothing to do with any issues to do with SA Pathology.”
However, Mr Picton said: “It is startling that KordaMentha’s secret report has been influenced by a consultant with clear conflicts of interest.
“Instead of listening to health experts, Rob Lucas wants liquidators in charge of your hospital. The State Budget projects 880 health staff to be cut this year. That’s less doctors and nurses.”
Sarah Andrews of Professionals Australia representing workers said ACL recently opened a centre in Elizabeth and is a tenant in a $15 million pathology lab at the airport.
“This is muddy as all hell,” she said. “We believe this dodgy review needs to be junked and started again from scratch because it is tainted.”