Tasmania’s health system underfunded by $500m: analyst

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An independent health policy analyst claims Tasmania’s health system is underfunded to the tune of $500 million.

Martyn Goddard said the State Government spent almost $500 per person less than the national average on health in 2012-13.

The Commonwealth Grants Commission will this year give the State Government $266 million to meet Tasmania’s special health needs, an increase of $97 million on last year’s allocation for health.

But that money has been budgeted to go elsewhere.

Mr Goddard said unless there was a major policy turnaround in next year’s state budget, none of the money would go to health.

He urged Treasurer Peter Gutwein to at least reserve the extra $97 million for health.

“Now that money is free and clear,” he said.

“It would be very easy for Mr Gutwein to spend that on health.

“And $97 million spent on health would make [Health Minister] Michael Ferguson’s job [a] hell of a lot easier.”

Mr Goodard said while there was no legal obligation for the money to be spent on health, there was a moral one.

“People are getting sick and dying out there because the state isn’t spending the money on the thing this state most needs,” he said.

Government spokesman Guy Barnett defended the state’s health funding, pointing to evidence it actually spent more per capita than the national average on health last financial year.

“The Government has a clear view that health is a priority,” he said.

“We will always try to ensure that frontline services are maintained and supported, and that will certainly be the case going forward.”

Opposition Leader Bryan Green added to the criticism, despite Labor also having spent the GST health money elsewhere when in government.

“We’ve got a situation now where this current State Government is cutting $200 million out of health at the same time as Martyn Goddard is suggesting that there should be $500 million spent more effectively in health,” he said.