Stirling Community Hospital on the brink of relocating will remain in operation

An announcement has been made on the fate of an under threat Hills hospital, battling financial losses and maintenance issues.

The 90-year-old Stirling Community Hospital will continue to operate after almost having to relocate, due to ongoing financial losses and safety compliance orders costing tens of millions of dollars.

Last year, the Australian Commission on Safety and Quality in Healthcare (ACSQHC) sent out a mandatory compliance bill that would have required the Stirling Hospital to undertake upgrades which cost above $50m.

Under the requirements, the hospital would have to have undertaken major infrastructure upgrades, including re-sizing operating theatres and replacing the building’s water filtration system.

The Stirling Community Hospital will continue to operate despite losing $1.1 million during the 2022-23 financial year. Picture: Keryn Stevens

However, in September, a lifeline was thrown to the hospital which relaxed the requirements, meaning the hospital could improve the infrastructure already in place to safe operating standards, and keep the hospital going without having to relocate to a purpose-built facility in nearby Mount Barker.

On Tuesday, Chair of the Stirling Hospital Board, Cathy Miller, said while the doors would remain open, there was still a lot of work to be done.

“While celebrating the decision to stay, the hospital acknowledges the need for ongoing improvements, especially in ventilation systems,” she said.

“How to fund those upgrades and manage the disruption to normal business activity still needs to be explored.

“We need to make adjustments to our current operating model to ensure long-term sustainability and a great deal of work has happened over the last 12 months to increase patient numbers and reduce operating costs, without impacting on the quality of services delivered.”

The announcement follows the ACSQHC update of Advisory AS18/07 Reprocessing of reusable medical devices in health service organisations in September 2023, which removed the December 2024 timeline for replacement of reprocessing and water filtration equipment.

The hospital operated at a loss last financial year, the fourth in a row, losing $1.1 million between June 30 2022-2023.

Ms Miller said the board was currently exploring ways to improve the hospital and bring in revenue, which included changing the current business model.

“While the Hospital has been able to draw down on investments to fill shortfalls to date, it is critical to change the current business model to remain sustainable,” she said.

“We are in discussions with existing specialists to make operating lists more cost efficient and are looking to increase the number and types of specialists who use the Hospital to bolster weekday occupancy demand and activity levels?

The decision by the board to retain the hospital was reached after extensive consultation with a range of experts, the local community and other stakeholders spanning nearly 12-months.