Queensland hospital boards may be forced to explore ‘draconian measures’ and cut services

After a spreadsheet showing nearly $550m in proposed cuts to the state’s health system was leaked, hospital boards are considering drastic measures in response.

Hospital boards are considering not signing crucial service agreements ahead of the looming state budget amid serious concerns they would have to explore “draconian measures” and cut community services.

The Courier-Mail can reveal crisis talks are being held by boards across the state which are desperately hoping news agreements from the Health Department will be presented this week. 

The revelation comes after a spreadsheet detailing nearly $550m in proposed “efficiency” and “productivity” cuts to the state’s hospital and health services for 2021-22 was leaked to the Opposition, prompting accusations the government was ripping money from an already struggling system.

It came amid an ambulance ramping crisis that has dominated headlines in recent months with expert health figures calling for a whole system review in the wake of bed shortages.

One source said if a new agreement wasn’t offered, “draconian measures” would need to be explored to help balance the budget.

“Services are definitely under the microscope,” they said. 

Health Minister Yvette D’Ath. Picture: Liam Kidston

It’s understood the boards have been aware of the half a billion dollar figure for weeks. 

Health Minister Yvette D’Ath last week said the government would not be cutting the budget, instead saying there would be an increase in spending. 

Service agreements define what services a hospital and health service will provide – including medical, teaching and research.

Essentially a contract between HHS’ and the Health Department, the agreements also outline the outcomes which health services must meet.

The leaked spreadsheet revealed the Sunshine Coast HHS would need to find $61.2m, while Metro North would need to save $89.8m, among others.

It comes after Treasurer Cameron Dick last year announced a 2 per cent “productivity dividend” for Queensland Health which is expected to save $1 billion across four years.

But the spreadsheet revealed an average 3 per cent dividend across the HHSs.

The source said boards were considering not signing the agreements but were hopeful they would be presented with something new.

Asked why all of the boards hadn’t signed off on their agreements, and whether she was confident all would have before the state budget on June 15, Ms D’Ath responded: “We will continue to engage with stakeholders, including our Hospital and Health Services, ahead of this month’s state budget which will include record funding for health services.”