Tasmanian State Budget 2019: What the Government is spending to solve the health crisis

Health is the biggest item in the Tasmanian State Budget. But where is the money being spent and will it make a difference?

The emergency department at the Royal Hobart Hospital has been crying out for more resources. Picture: NIKKI DAVIS-JONES

TASMANIA’S struggling health system the Government $144 million more than it expected this financial year — and the Health Department has since dramatically lowered its own performance targets.

Budget papers show the Tasmanian Government planned to spend about $1.8 billion on health over 2018-19 but now expects it will cost more than $1.95 billion by July 1.

Despite the blowout in this financial year’s budget, the Government will increase health-related funding by just $11 million to about $1.96 billion in 2019-20, budget papers show.

Health Minister Michael Ferguson was forced to announce more than $100 million in emergency funding for the public hospital system at the end of last year as each of state’s major hospitals struggled to meet growing demand.

Speaker Sue Hickey also negotiated $2 million for women’s health — set to continue next financial year before running out.

MORE:

BUDGET 2019: WHAT YOU NEED TO KNOW

HEALTH: WHAT THE GOVERNMENT IS DOING ABOUT THE RHH

ANALYSIS: DRESSING UP THE ORDINARY

EDUCATION: EARLY LEARNING A WINNER

Comparisons of two years of budget papers indicate the increased spending did not result in better outcomes. The Health Department has dramatically lowered its performance targets on most measures, including revising its down its 2018-19 target for the number of elective surgery patients seen on time to about 75 per cent.

It will aim to have elective surgery patients in the greatest need wait about 50 days more than their recommended wait time instead of just 11 days.

It has also shifted the goalposts in emergency department services. It will aim to have about 65 per cent of emergency department patients seen on time, down from a previous 2018-19 target of 80 per cent.

Federal Government funding aimed at improving the state’s health system will run out in 2020-21, resulting in a real reduction in health services system management from that financial year.

Funding to all areas of the Tasmanian Health Service and ambulance services will increase over the forward estimates but spending on public health services will decline every year from July 2020.

Less than $2 million for stage two of the Royal Hobart Hospital redevelopment will be spent next year.

Australian Nursing and Midwifery Federation executive director Andrew Brakey said it was disappointing the Government was not offering a greater pay rise to his members.

“There is no way we will be able to recruit the nurses required to be able to ensure the people in that new infrastructure receive the care they need,” Mr Brakey said.