Breakdown of Tasmanian Health Organisation expenditure
Mrs Armitage (Launceston) to ask the Honourable the Leader of the Government -
With reference to the Department of Treasury and Finance Revised Estimates Report 2014-2015 (including December Quarterly Report) page 2 - additional expenditure in THO-South and THO-North-West of $30 million which reflects above Budget expenditure in 2014-15 -
(1) Can the Government explain, by THO, the actual breakdown and provide the deficit/surplus figures for the three THOs for each year since they were created in 2012?
(2) Given the predicted deficit, can the Government indicate if the THOs in deficit will achieve a balanced budget for 2014-15 with these additional funds?
(3) (a) Given the Government has been prepared to fund the additional expenditure at THO South and THO North-West, will additional funds be provided to THO North to fund the obvious demand pressures in areas such as the Emergency Department and other areas; and
(b) if not why not?
(4) (a) Does the additional funding mean THO South and THO North-West have structural deficits and that the new Tasmanian Health Service (THS) will have to absorb these from 1 July 2015; and
(b) if so, will there be a guarantee to ensure the funds are not redirected from the North?
Answer from the Leader of Government, Dr Vanessa Goodwin:
(1) The THOs commenced operation on 1 July 2012, with the first year of operation being 2012-13.
In 2012-13, Budget Outcomes for the THOs were as follows:
- THO North - $13 million surplus:
- THO North-West - $1.4 million surplus; and
- THO South - $5.6 million deficit (as per THO South Annual Report).
In 2012-13, THO North-West received transitional grant funding from DHHS of $4 million.
As disclosed as part of the 2014-15 Budget Estimates hearings, THO Budget Outcomes in 2013-14 were as follows:
- THO North - $16.2 million surplus;
- THO North-West - $7 million deficit; and
- THO South - $22.2 million deficit.
It should be noted that in 2013-14, the Government provided additional supplementation of $24.1 million to assist the THOs ($20.3 million for THO South and $3.8 million for THO North-West).
(2) The former THOs all achieved a balanced Budget in 2014-15, with the provision of the additional funding. The need for supplementation was identified in the 2014-15 Revised Estimates Report. (3) and (4) From 1 July 2015, are allocated to the THS on a statewide basis.
The allocation of funds within the THS will be made in accordance with the service delivery requirements of the health system and will be based on the level and nature of activity purchased, with the objective of delivering safe and efficient services across the state within available THS funding.
The 2015-16 THS Service Agreement details the allocation of funds for the coming financial year, and is available online at: http://www.dhhs.tas.gov.au/tho/service_agreements
Answer provided Tuesday August 18, 2015.