State Government could cut 332 jobs at SA Pathology by 2017-18

SA PATHOLOGY will look at cutting more than 330 full-time staff as it looks for $42 million in savings.

Curious research scientist in lab coat and rubber gloves looking

SA PATHOLOGY will look at cutting more than 330 full-time staff as part of a plan to cut operational costs by $42 million.

Scientific and technical staff who run the pathology services, administration and consultant pathologists are among the jobs in the firing line.

An independent review of SA Pathology by Ernst & Young revealed the cost of providing pathology services in South Australia is almost 50 per cent higher than the industry accepted benchmark.

“(The) report has identified that SA Pathology’s cost of providing public diagnostic services is 126 per cent of the Medicare Benefits Schedule, which is considerably higher than the industry accepted benchmark of 85 per cent or less,” SA Health chief executive David Swan said.

The report stated SA Pathology had not delivered the expected savings target of $10 million and produced significantly less overall productivity than interstate and overseas pathology organisations.

The report read: “As a result, SA Pathology requires a significant change in financial performance in order to achieve budget sustainability.”

Ernst & Young outlined six recommendations — including a reduction in staff — to achieve the needed savings, which will now be subject to public consultation.

While the government is yet to respond to the recommendations, if implemented, they will result in annual savings of up to $42.7 million and a reduction of 332 full-time equivalent positions by 2017-18.

If jobs were cut, Mr Swan said he could “guarantee” the service would not suffer.

“At the moment we have a high quality and safe service and we can continue to have that as our number one priority,” he said.

“But I can guarantee the quality and safety of the services to our hospitals and our patients will remain at a very high level.”

Public Service Association of SA chief industrial officer Peter Christopher said he was most concerned about the job cuts and how the same level of services would be maintained.

“What the PSA will be arguing is that they (the State Government) are not able to make those cuts and still maintain services,” he said.

“The PSA is concerned about the impact on community services and the impact of people that perform those roles.”

Mr Christopher said he would discuss the report with members to determine recommendations put forward to SA Health by the consultation closing date, February 6, 2015.

Australian Medical Association SA president Dr Patricia Montanaro said the safety, quality and timeliness of pathology results was vital.

“There are pressures on the health budget and if inefficiencies are identified it is appropriate to look at that, but any reduction in staffing must not directly affect timely and efficient access to pathology results,” she said.

Opposition health spokesman Stephen Wade said the State Government needed to show more transparency in transforming the state’s health department.

“It’s all well and good to talk to us about high level statements (but) the government isn’t willing to be open and honest about what they’re considering,” he said.