State Budget 2018: Papers reveal $87m in extra health costs

TASMANIA’S health system cost $87 million more to fund this financial year than was budgeted for, Budget papers reveal.

TASMANIA’S health system cost $87 million more to fund this financial year than was budgeted for, Budget papers reveal.

The Government last year predicted the health system would need $1.72 billion to operate in 2017-18, but is now estimating it will have cost $1.81 billion by the end of the financial year.

The blowout is blamed on a $56.3 million increase in demand, including increased elective surgery and managing the 2017 winter flu outbreak, as well as $12.7 million expenditure for increased National Health Reform Funding, and $10.5 million for the transfer and reclassification of the Health Funding Provision from Finance-General.

The revelations come as Treasurer Peter Gutwein announces $250 million over the next four years in additional recurrent funding for the health system, and $120 million for new capital investments.

Heath commitments included in the State Budget largely reflect promises made during the recent election campaign, including ward upgrades for the Royal Hobart Hospital, upgrades for Ambulance Tasmania, and new mental health beds.

MORE STATE BUDGET COVERAGE:

TASMANIA POLICE DRONES TAKE TO THE AIR

ANALYSIS: GUTWEIN SURFS THE WAVE OF PROSPERITY

FOREIGN INVESTOR DUTY SURCHARGE FOR HOUSING

Ambulances line up at the Royal Hobart Hospital emergency entrance. Picture: NIKKI DAVIS-JONES