South Australian government’s ‘Transforming Health’ reforms yet to deliver cost savings - Auditor- General

TRANSFORMING Health is yet to deliver any of its anticipated cost savings and the State Government has failed to comprehensively analyse the risks involved, an audit has found.

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TRANSFORMING Health is yet to deliver any of its anticipated cost savings and the State Government has failed to comprehensively analyse the risks involved, an audit has found.

Auditor-General Andrew Richardson, the state’s chief financial watchdog, handed his annual report to State Parliament on Tuesday and also revealed that Cabinet could now ban him from accessing documents which could be crucial to determining if public money has been properly spent.

Mr Richardson’s report finds the Health Department blew its budget by $317 million last year and “continues to face challenges in setting and achieving realisable savings targets”.

He says Transforming Health is yet to deliver cost savings, but is projected to do so in the future.

He called for new controls over its management to ensure effective implementation.

Mr Richardson reports the Transforming Health Operations Management Committee should meet fortnightly but often cancels, and failed to meet at all for three months from December to March.

“The Independent Program Management Office reported throughout the year that qualitative and quantitative benefits were not being delivered by the Transforming Health program,” he reports.

“Although local health networks were not achieving financial savings, no new projects were identified ... to achieve the savings shortfalls.

“As at 30 June 2016, no financial savings had been achieved by the Transforming Health program, although some potential savings were projected.”

Health Minister Jack Snelling. The State Government’s health reforms have yet to deliver the anticipated cost savings, the state’s Auditor-General has found. Photo: Dylan Coker

Mr Richardson says the “scale and pace of reform” challenges plans for cost savings, which may be achieved in the future, but the overhaul is “inherently risky”, with many moving parts.

Mr Richardson says Cabinet has also clamped down on his ability to access its documents.

These include submissions, notes, comments and advice which he could previously obtain from Mr Weatherill’s department but will now be refused if Cabinet wants them kept secret.

“Access to Cabinet submissions is likely to continue to be a necessary element of audit

evidence,” he reports.

“For some matters, the Cabinet submissions were the primary record.

“If I am unable to obtain appropriate evidence and denied access to a relevant Cabinet document that I require to properly perform my statutory audit functions, I will advise the Parliament.”

Opposition Leader Steven Marshall said it was proof of “a dodgy Labor Government who are going to extraordinary lengths to keep their dirty secrets hidden”.

“I am constantly amazed at the lengths the Labor Party will go to trying to shut down scrutiny of their performance and use of taxpayer funds,” Mr Marshall said.

“Every South Australian should be alarmed at this development.”

Mr Marshall said he feared the new secrecy policy would also impact on other investigative agencies including the Independent Commission Against Corruption.

Attorney-General John Rau said Cabinet documents were previously being released to the Auditor-General by departmental officers without the knowledge or authorisation of ministers.

“Cabinet documents are documents which are to remain not public for 10 years as a matter of law,” Mr Rau told The Advertiser.

“There’s multiple cases which exempt Cabinet documents from all sorts of release all over the place. This is nothing particular to SA.”

Mr Rau said that if Cabinet refused to release a document, it would do so in the knowledge that fact would likely be reported to Parliament.

“That’s a matter that the Cabinet would have to consider in that circumstance, and wear the consequences,” Mr Rau said.