Stirling Hospital ‘profoundly disappointed’ after Adelaide Hills Council rejects rates rebate request

A Hills council has rejected a private hospital’s plea for a rate reprieve, with one councillor saying it was a question of “who’s in the worst financial condition”.

Stirling Hospital has lashed the Adelaide Hills Council for denying it a “modest” $25,000 rate rebate, saying it refused the request only because of its own “financial mismanagement”.

The private hospital’s board said it was “profoundly disappointed and frustrated” by the council’s decision to deny it a discretionary rate rebate at its November meeting.

A majority of the council voted no, with one councillor saying it was a question of “who’s in the worst financial condition”.

AHC in September revealed a surprise operating deficit of $4.863m, blaming the previous administration.

The hospital faced closure or relocation earlier in the year when it was hit by $50m in major, mandatory upgrades – they were largely deferred, but it must spend $500,000 on ventilation. A state government request has been rejected.

In a statement, the hospital board said the council’s decision revealed an “alarming lack of accountability”.

6/10/23. The Stirling Hospital. Picture: Keryn Stevens

“The reasons offered for this refusal centred on the council’s own financial mismanagement, which has led to a substantial budget deficit,” it said.

“This response reflects an alarming lack of accountability, especially given that the requested rebate represents a mere 0.057 per cent of the council’s total $44m in rates revenue.”

The hospital board said it was “further troubled” by inconsistency in the council’s decision-making, saying it had granted other not-for-profits rate rebates.

“This arbitrary approach raises serious concerns about fairness and the council’s genuine commitment to supporting essential services,” it said.

Hospital chair Cathy Miller told The Advertiser the hospital’s finances were improving, but it was still a close fight.

“At the end of October, we’re about $6000 in the red, but that’s all,” she said. “We’re sitting just on the line … and we’re about to experience our worst month.

“But we have secured the support of the community and of the surgeons, which makes a margin for us. They have been happy to help us to improve the financial bottom line to be able to survive and also make the changes to meet the standards.”

“Our balance sheet is strong, but on an operational basis we can’t continue to lose $1m a year.”

She said the hospital had finished works to satisfy SA Health to stay licensed and all it could do was reapply for a rebate next year.

“We don’t see much hope in them changing their decision.”

Moving the motion for the rebate, Hills councillor Adrian Cheater said the hospital was “high critical and high value”, while creating an opportunity for inclusion and “staying connected” while recovering.

More than half of its patients were over 65, he said, and it offered a raft of services to the ageing Hills community.

Councillor Chris Grant, who voted against it, said it would look “like we’re doing good but that’s money coming from elsewhere”.

Cr Malcolm Herrmann agreed, concerned the hospital would “come back again”.

The council administration declined to comment.

Originally published as Stirling Hospital ‘profoundly disappointed’ after Adelaide Hills Council rejects rates rebate request