$325m rescue package for Tassie health

The federal government insists a $325 million rescue package for Tasmania’s ailing health system has tough conditions attached that will ensure the state government can’t waste the funds.

Federal Health Minister Tanya Plibersek has announced the Commonwealth is taking “urgent action” to head off a crisis caused by the island state’s aging population, higher rates of chronic disease and system constraints.

The funding, over four years, was decided after government consultations with Tasmanian independent MP Andrew Wilkie.

“The government has come up with an emergency rescue package we believe will address the unique challenges faced by the state,” Ms Plibersek said in a statement on Friday.

The $325 million package includes a $31 million elective surgery blitz. An additional 2600 operations including orthopedic and cataract surgery will help clear a backlog.

There’s also money for walk-in clinics in Hobart and Launceston, better after-hospital care, medical specialist training, mental health services and the rollout of personal electronic health record systems in local hospitals.

“These investments respond to the ideas that front-line clinicians have told me will be the best ways to tend to Tasmania’s health system,” Ms Plibersek said.

The minister insisted the Tasmanian government would face a strict reporting and accountability regime.

The state would have to maintain current funding levels in order to receive Commonwealth cash and report monthly on where it was spending the extra funds.

A three-person commission will be set up to ensure the state is delivering services as effectively and efficiently as possible.

Mr Wilkie on Friday said the $325 million would count for little “unless it’s followed by genuine reform to put Tasmania’s public health system on a more sustainable footing”.

He nevertheless praised the government for responding to his request for urgent assistance which he first raised with the prime minister at the beginning of May.

“I’m hopeful the federal assistance package will go a long way towards taking the state’s public health system off the critical list,” Mr Wilkie said in a statement.

“According to the state government these additional elective procedures will largely reverse the recent cuts.”

But federal opposition health spokesman Peter Dutton believes Friday’s announcement is a “band-aid solution”.

“The reason we are here is that the Labor state government ripped $430 million out of its health system,” he told ABC TV.

“You can’t have a state government ripping out almost half-a-billion dollars and the Commonwealth put in $300 million and pretend it’s a good news day.”

Mr Dutton called on Ms Plibersek to guarantee that not one dollar out of the rescue package would be spent on additional bureaucracy.

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