Lawsuit over McLaren Vale Hospital’s future hears from Chris Overland

A McLaren Vale hospital’s former boss has told a court people’s “emotions got the better of them” over its closure, amid allegations of unruly behaviour.

The battle over a closing, debt-ridden hospital became “energised”, “unruly” and “unpleasant” as “people’s emotions got the better of them” and refused to accept the situation, a court has heard.

On Thursday, former McLaren Vale and Districts War Memorial Hospital chair Chris Overland took the witness stand in the Supreme Court as part of a lawsuit over its fate.

He denied allegations of “clandestine” behaviour and membership-stacking, made by those opposed to a plan to transfer the hospital’s land to an aged care provider.

Mr Overland said the board had been “very open”, worked to address “misinformation and disinformation”, and acted according to the hospital’s constitution at all times.

Former McLaren Vale and Districts War Memorial Hospital chair Chris Overland.

“One set (of the membership) thought what we had done was clearly correct, sensible and reasonable, while another group was vehemently against it,” he said.

“They were upset at the closure of the hospital and believed we had acted improperly or hastily, and did not want to see the proposed transfer go through.

“We (the board) did not actively undertake recruiting of membership … we took a passive role.

“We were certainly aware that people opposed were actively recruiting (as were) people who were supportive … a lot of people were becoming energised about it, for and against.”

He said tensions worsened at an “unruly” meeting where “people’s emotions got the better of them” as a proposed dissolution of the board was voted down “by a very, very narrow margin”.

“People were not willing to accept the outcome of that meeting and tried again … at the time, I was the full-time carer for my terminally-ill wife,” he said.

“The strain of trying to deal with an unpleasant and adversarial situation meant I was looking forward to not having responsibility for what was going on at the hospital.”

McLaren Vale and Districts War Memorial Hospital closed in June 2023, with its board claiming that “even with government support, we are unable to stay open”.

A recipient of state government grants, it cited more than $3m in annual costs, which far outstripped its $700,000 income from private patients.

Southern Districts War Memorial Hospital at McLaren Vale closed in June 2023.

The facility had just 202 admissions in 2022, down from 2054 in 2018 – a 90 per cent reduction – and claimed to have also suffered “workplace decline”.

Moves to transfer the site to an aged care provider were met by a lawsuit from Adelaide City Councillor and hospital trustee Henry Davis.

His lawsuit alleges “clandestine” behaviour, vote stacking, tax hurdles and breaches of the hospital’s constitution.

In March, SA Health moved to recover $1.1m advanced to the hospital prior to its closure.

Giving evidence on Thursday, Mr Overland said members opposed to the closure had asked for a “board spill”, and it had been explored.

“Our legal advice was there was no power under the (hospital’s) constitution to enable the members to dismiss the board,” he said.

Regardless, the board instructed lawyers to draft a motion to that effect so that members could vote on the board’s future.

“That meeting went on for quite an extended time … things got a bit unruly, people’s emotions got the better of them,” he said.

“I had to take steps, as chair, to get those people to behave properly … it was quite a full and frank exchange of ideas, if I can put it that way.

“The motion failed by a very, very narrow margin … (after), we became aware of a sense of dissatisfaction.”

He said the atmosphere at another, subsequent meeting was “hostile” at times.

Mr Overland said the hospital’s land “has not been transferred” to the aged care provider “yet” and that consultation “has been undertaken and is ongoing”.

Some movable assets had, he said, been disposed of via auction.

Under cross-examination, Mr Overland refuted suggestions made, by Mr Davis’ counsel, that the hospital had been profitable.

“At no time did we make an underlying operating profit, and I do say that categorically … there was no underlying profit made,” he said.

“I don’t pretend to be an accountant (but) I do think I had a fulsome understanding in that I knew our underlying situation always remained perilous.”

He rejected suggestions the board should have taken advice from “random” people who “cold-called” them with ideas to save the hospital.

“We had decided that the situation was untenable and we had to do something else,” he said.

The hearing continues.