13 March 2025

Hospital reforms face resistance but change is vital to contain costs, make system fairer

| Ian Bushnell
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Canberra Hospital building entrance

The Main Entrance to Canberra Hospital. The new Critical Services Building is bringing some necessary but painful change. Photo: Michelle Kroll.

The ACT is investing a lot of taxpayers’ money in ACT hospitals – $661 million for the new Critical Services Building at Canberra Hospital and probably about a billion for the new Northside Hospital to come.

After years of bad performance data for the ACT’s Emergency Departments and elective surgery, there are signs that the money and efficiency measures are bearing fruit.

Yet Health Minister Rachel Stephen-Smith is facing more strife, this time over the six-month-old operations centre at Canberra Hospital which has upset orthopedic surgeons and probably others.

The head of orthopedics, Professor Paul Smith, has resigned after 25 years and two others have also given notice, claiming interference in their clinical decision making and a tightening of resources.

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Simmering away in the background is a dispute over the Minister’s plan to change the way Visiting Medical Officers – surgeons and specialists – are paid, as part of cost-cutting across the hospital system after having to inject a further $227 million into the system to keep it running.

Ms Stephen-Smith says moving away from fee for service to sessional contracts or employed staff will bring VMO pay into line with other jurisdictions and save the hospital and taxpayers money.

The VMOs are crying foul and claiming a lack of consultation.

Lack of consultation – Canberra’s favourite pastime – is also being thrown at the government over the operations centre, and the Minister has also had to debunk claims of bureaucratic overreach and decisions by algorithm.

It seems the operations centre is staffed by clinicians, not bureaucrats, with oversight over the whole of the hospital and triaging surgery according to need, which means some surgeons with their own patient lists are being put out.

Ms Rachel-Stephen Smith is saying that, in effect, there should be one list that everyone is aware of so that there is a level playing field and no queue jumping.

It should, in fact, mean that patients will be treated equitably and in the most efficient manner.

Whether that is happening or not remains to be seen, but it is clear that with health consuming a third of the ACT Budget and millions of dollars being poured into the hospital system and it is still struggling to keep up, something has to be done.

The government through Canberra Health Services is trying to exert greater control over the system to, yes, save money, but also to make it more efficient and provide better and more timely care.

This drive for more centralised control, instead of a patchwork of power centres, is bumping up against entrenched interests used to operating autonomously within our hospitals.

Hospitals traditionally have used surgeons and specialists with private practices who wield a great deal of influence and whose interests don’t necessarily match that of administrators with overarching responsibilities or governments grappling with constrained budgets and rising costs.

Even the language used by the Minister when talking about different ‘craft’ areas sounds medieval rather than evoking the ethos of a modern institution.

These specialists also operate closed shops, restricting the numbers of doctors who can train and join their private clubs (or ‘colleges’), increasing their demand and pushing up costs.

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Canberra’s hospitals have always, it seems, had their troubles, whether it be the EDs and waiting lists, the awful culture or inevitably the tragedies that come with the territory.

They can be graveyards for ministers and political ambition, but Ms Stephen-Smith has shown staying power and seems determined to bring about lasting change for the better.

Whether she can pull off this particular reform phase remains to be seen. Both parties say patients come first, but they will have different views of how to achieve that.

The bottom line is that the ACT Hospital system can’t continue as it is, and neither should archaic structures that are no longer fit for purpose.

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Woah there Ian. Little heavy on the opinion and light on the facts.

Can’t imagine you have any real credible info regarding colleges closing ranks and restricting supply.
Hard for them to offer training positions when the government won’t pay extra positions for junior trainees.

Also interested if you actually asked how much the health minister expects to save by cutting back clinicians salaries.
My hot guess is less than 2% of the enormous blow out the health system has achieved by splashing cash on electronic health records, acquiring Calvary and building a shiny new building they won’t pay good wages for people to work in now.

You say staying-power, I see a useless ‘let’s pretend I’m a real minister’ who refuses to step down. Labor won’t take responsibility for anything… or listen to anyone not named Karen. Why not start with frontline staff ratios and a few relevant KPIs honestly filled in. And if heath needs a bit more money, just stop the Chief Clown’s “look at me” vanity choo-choo project.

HiddenDragon8:24 pm 15 Mar 25

Interesting to compare what is in prospect here with what is now planned for a very much larger health system on the other side of the world –

https://www.bbc.com/news/articles/c70w17dj258o

Knowing how this government works (or does not), in a few years time, after these latest changes fail to produce the desired results, the devolution vs. centralisation pendulum will swing back the other way and we’ll be hearing about the benefits of “empowering the frontline workers”.

The expensive consultant’s report which will provide the pretext for those changes could probably be written now (if it hasn’t already been).

Yes, change is necessary and upgrades need to occur but like any project this local government has the responsibility for, it’s a half baked approach (MyWay+ and the Chief Ministers ‘train set’ are two examples).

Why is it that essential technology equipment being utilised in the new Critical Services Building (CSB) is not compatible with the equipment being used on the wards e.g. the sticky pads for ECG machines.The waste that is created must be adding to some of the ‘over expenditure’ that this government didn’t account for.

If you are moved from CSB to the wards it’s like going back 15 years. The physical state of the rooms and their associated furnishings makes you think that someone’s priorities were not focussed on the hospital as a whole environment.

Overall the work on Critical Services represents a glossy brochure cover with the wards still working from old butchers paper as the pages.

If you want to retain the great staff that work there, create an equal working environment for all employees.

The health system in the ACT needs the funding as a Priority. The ‘train set’ can wait at Commonwealth Ave when Stage 2A is finished, until a more appropriate time.

By Ian Bushnell, the apologist for the Government. Is the work of a surgeon really called a ‘craft’ area? Seems derogatory on the part of the Minister.

Gregg Heldon12:28 pm 14 Mar 25

If surgery is a “craft”, maybe the Government could offer workshops at Erindale College of a night time to see if we all want to have a go.
I’m not very good at pottery, but happy to give surgery a crack.

@Gregg Heldon
🤣
Nice one 👏

What many medical specialists do wouldn’t be much more than a craft, and they charge an exorbitant fee, which the GP profession is so envious of.

This is really hard hitting journalism, can’t believe why some say that the ACT Government receives soft treatment from the media on the tough issues.

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