Financial advisors appointed after $27m health service blow

Expert financial advisors have been called in after Sunshine Coast Hospital and Health Service slumped $27 million into the red last year.

Government financial advisors have been appointed to Sunshine Coast Hospital and Health Service after it suffered a budget blow last year.

Expert financial advisors have been called in after Sunshine Coast Hospital and Health Service slumped $27 million into the red last year.

A new Queensland Audit Office report found 11 of the 16 state health services recorded losses last year totalling $82 million.

Auditor-General Brendan Worrall's probe into state health entities found many hospitals were spending more than they had on patient care.

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The Sunshine Coast and North West Hospital and Health services had government financial advisors appointed by former Health Minister Steven Miles in response to the budget blows.

Mr Worrall's report found COVID-19 caused widespread disruption but there were other ongoing challenges faced by health services.

He said fewer clinical staff were able to take leave and warned catching up on holidays could require some hospitals to recruit temporary workers.

Mr Worrall said funding the $800 million in upcoming building maintenance also posed a "significant future challenge".

One of Sunshine Coast Hospital and Health Service’s challenges is opening and operating a new hospital.

Queensland Health Director-General John Wakefield said the health services, set up to run the state's hospitals, had a challenging year due to the global health pandemic and implementation of a new financial system.

Mr Wakefield said increased staff costs and cancelled surgery caused a $70 million hit to revenues.

A Sunshine Coast Hospital and Health Service spokesman said the service was working to find "innovative solutions" to achieve a balanced budget.

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He said its main challenges were around complexities of opening and operating a new hospital, an increased workforce and COVID-19.

"While our region experienced many challenges including bushfires and the COVID-19 pandemic, we are very proud of the achievements of the health service over the past 12 months," he said.

"One of our most significant achievements has been the innovation borne from these challenges.

"For example, to ensure our patients continued to receive care our use of Telehealth services increased by more than 200 per cent last financial year."

He said the community should be proud of the work of health professionals.

"We have been overwhelmed by the support and appreciation we received from them - letters, billboards and many other thoughtful gestures," he said.

The service experienced a $27 million operating results deficit in the 2019-20 financial year.

Its annual report revealed while income increased by $26.6 million to $1.28 billion, expenses also went up to $1.3 billion.

The report said funds received from the government for its COVID-19 response did not cover loss of revenue.

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