One of Perth's busiest public hospitals has been given a funding reprieve, with the State Government reversing a $10 million budget cut that doctors had warned would put patients' lives at risk.
The McGowan Government confirmed in State Parliament it would provide additional money to cover the funding shortfall at St John of God Midland Public Hospital, after a flagged cut prompted anger from medical unions and the opposition.
St John of God, which operates the hospital as part of the public system with State Government funding, was informed the proposed cut had been reversed on May 25—just four days after details of the $10 million shortfall was exposed by the ABC.
Funding lifeline in the nick of time
The decision reverses the looming budget cut, just one month before it was due to come into effect.
The funding reduction loomed because of the complex contract that governs the operation of the Midland hospital, with the amount of money provided by the state based on the cost of providing services at other facilities.
That meant, for the 12 months from July 1, St John of God would have been given $10 million less to run the hospital than it was previously.
Opposition health spokeswoman Libby Mettam said it was a relief the planned cut had been reversed, but said the Government had been pressured into acting.
"It was quite extraordinary for the Government to propose a $10 million budget cut.
"Given the Government is sitting on a multi-billion dollar surplus, it raises the question why they were proposing to penny-pinch in this area."
Government was never going to let hospital care suffer, says Cook
Health Minister Roger Cook said the Government had "said repeatedly" it would not allow a reduction in hospital and health care at Midland Hospital.
"There is a contract in place between East Metro Health Service and St John of God to provide funding based on service," he said.
"The terms of this contract were decided by the Barnett Government.
"The latest funding has now been finalised, which is what we expected to happen."
Peak medical group welcomes decision
AMA WA President Andrew Miller said it was good to see the funding reprieve, and that any suggestion of cutting funds to the health system now was "completely ridiculous".
"It's really good to see the Government are realising that we can't be cutting funds to our public hospital system at a time when it's just not coping and elective surgery is being cancelled.
"Hopefully this means the Government's full attention will come on to this failing portfolio."
Funding cut put jobs on the line
Before the cut was reversed, St John of God had warned it would have to look at cutting jobs at the Midland hospital.
The situation had angered and concerned doctors at the hospital, who warned they were already being stretched to the limit amid surging demand—with the facility's eastern suburbs catchment area having experienced huge population growth in recent years.
But, prior to reversing the cut, health officials had argued Midland should be able to find savings given other hospitals had been asked to do the same.
