Medical services face being moved out of cramped RAH as leased out space rented back at $880,000 a year

The $2.7bn Royal Adelaide Hospital is planning to move services out as it runs out of room, while an area it leased to a private consortium and now rents back at a higher rate may be turned “into a pizza bar.”

SA Health leased space at the $2.7bn Royal Adelaide Hospital to a private consortium — but then needed the space so had to rent it back at a reportedly higher rate of $880,000 a year.

It now wants to break the lease, which means it has to find room for the respiratory services housed there.

To make room in the now cramped hospital — which opened in 2017 — officials are looking at moving out the Infectious Diseases Unit and Genetics Unit.

Infectious diseases services may be moved to another leased building across the road on North Tce – which may see ambulances needed to transfer patients a few hundred metres.

Parliament’s Health Services committee chair Connie Bonaros MLC said the situation “beggars belief.”

She raised the issue during a hearing, saying: “There are services at the Royal Adelaide that are being moved at the moment because there is no longer space at the Royal Adelaide.”

Connie Bonaros MLC said the situation “beggars belief.” Picture: Roy VanDerVegt

She asked SA Salaried Medical Officers Association chief industrial officer Bernadette Mulholland — giving evidence to the hearing — if she had any information.

“We have several services that are being looked at to be moved off,” Ms Mulholland responded.

“One of those matters is before the Employment Tribunal, which will be moved to a five-day hearing in a couple of weeks’ time so I can’t talk too much on that one.

“There are other services where people have to share desks and share computers.”

Ms Mulholland revealed the RAH site has space initially leased to “outside consortiums” which are now being leasing back to SA Health, saying the cost was around $880,000 a year.

“We have within the Royal Adelaide Hospital property that we have leased to outside consortiums who are now leasing it back, so that we can fit the services into the Royal Adelaide Hospital,” she said. “That to me boggles the mind.”

Ms Mulholland says because SA Health now does not want to pay the lease, the private consortium could turn the space into whatever it wants “such as a pizza bar.”

SASMOA chief industrial officer, Bernadette Mulholland. Picture: Matt Loxton

Ms Bonaros told The Advertiser: “It beggars belief the hospital leased out its own space, then because it had no room had to pay to lease back its own space — it is quite extraordinary.”

Central Adelaide Local Health Network chief executive Dr Emma McCahon confirmed the RAH’s Infectious Diseases Unit and Adult Genetics Unit both face relocation.

“We appreciate that relocating clinical and patient services can present challenges and is not a decision that is made lightly,” she said. “We are continuing to work through the options with staff and unions and are aiming to identify the best possible solutions and new opportunities that will benefit both our staff and consumers.”

No information on lease deals was released due to “Commercial in confidence.”

Originally published as Medical services face being moved out of cramped RAH as leased out space rented back at $880,000 a year