AMA warns of longer NSW surgery waiting times

THE NSW government trumpeted its record $16.4 billion budget health spend but industry figures said the hospital system had been shortchanged. 

THE NSW government trumpeted its "record" $16.4 billion budget health spend yesterday but industry figures said the state's beleaguered hospital system had been shortchanged by a drop in real funding.

While there was extra money for mental health programs, more funding for equipment in the state's busiest emergency departments and the promise of an additional 380 acute-care hospital beds, the Australian Medical Association said NSW hospitals would be about $500 million worse off next year as a result of government cutbacks.

The shortfall was likely to result in longer surgery waiting times and a loss of services, the AMA warned.

AMA NSW spokesman Brian Morton said rising industry costs needed to be offset by a 9.6 per cent funding boost; however, the $16.4bn investment in health services and infrastructure represented an actual increase of just 8.6 per cent on the previous year.

"The Keneally government has delivered an effective cut to NSW patients," Dr Morton said.

"The effective cut in state health expenditure is in direct contrast to state governments in Western Australia and Victoria who have increased their state commitment to health. NSW patients needed this budget to deliver improvements to services now; they cannot wait any longer."

Within the government's health allocation was $53.8m for elective surgery, which the government claims will allow for 11,000 additional procedures.

The government has been forced to defend its method of managing hospital elective surgery waiting lists in recent times amid claims official figures do not reflect the actual number of people waiting for procedures.

"There always will be a backlog (of people waiting for elective surgery)," Dr Morton said.

"The recent announcement of lost referrals for elective surgery means that our waiting lists are longer than expected and patients will again, with funding being less than needed, be waiting longer times for their operations."

In other areas, a large chunk of health funding -- $1.02bn -- will go to ongoing capital works, including more than $82m for Sydney's new Royal North Shore Hospital, $180.1m for Orange Base Hospital, $111.5m for the Liverpool Hospital redevelopment, and $36.4m for the expansion of Nepean Hospital.

ADDITIONAL REPORTING: AAP