Tasmania's healthcare funding crisis is a ticking time bomb, and it's about to explode. With Eric Abetz set to present his first budget, the state's health system is at a crossroads. A peak health body is worried that the upcoming budget won't provide the necessary support to tackle the growing demand for healthcare services.
The Australian Medical Association (AMA) has already seen the impact of government cost-cutting measures, such as staff vacancy controls and efficiency drives, on service delivery. Dr Michael Lumsden-Steel, president of AMA Tasmania, revealed that staff are delaying decisions to avoid spending money, a clear sign of the strain on the system.
But here's where it gets controversial... Dr Lumsden-Steel believes this budget is critical for health, yet he's not optimistic about long-term solutions. He fears it may only offer short-term fixes or even introduce cuts, given Treasurer Abetz's focus on reducing spending.
Dr Lumsden-Steel highlights that funding issues are not unique to Tasmania; every state is facing massive budget and healthcare delivery problems. He emphasizes, "We can't do it with the resources we've got."
The health budget has blown out by a staggering $400 million, with the main overspend being on staff, including locums. Treasury's report shows a net operating balance of $1.2 billion for the 2024-25 financial year, but with net debt reaching $5.04 billion.
Mr Abetz claims the report shows improvements, but others argue that immediate and sustained corrective action is needed to tackle Tasmania's growing debt, which is projected to reach $13 billion by 2027-28.
Labor's health spokesperson, Sarah Lovell, believes the government should focus on spending their health budget more effectively rather than necessarily increasing it. She emphasizes the need for better outcomes.
Dr Lumsden-Steel agrees, calling for long-term solutions and a more strategic budget that considers hospitals' demand. He highlights the current command-and-control structure, where government departments are running hospitals instead of the other way around.
And this is the part most people miss... Health Minister Bridget Archer, just three months into her role, is facing pressure to address long ambulance wait times and a growing elective surgery waitlist. She's also dealing with a wage dispute with public sector unions, including the Health and Community Services Union.
Minister Archer has called on the federal government for more support, stating that Tasmania would be worse off by over $670 million under the proposed public hospital agreement. She argues that the federal government is asking states to reduce health demand without providing the necessary resources or tools to achieve this.
The federal government, however, believes it is already providing sufficient support and has recently introduced bulk-billing incentives.
So, who's right? Is Tasmania's healthcare system on the brink of collapse, or can it be saved with better management and funding? What do you think? Share your thoughts in the comments below!
