Health authorities have confirmed 332 jobs will go from SA Pathology over the next three years in South Australia.
SA Health will implement five of six recommendations from an independent performance and efficiency review and says savings of $42.2 million are expected as a result.
The health agency’s CEO David Swan said services would be streamlined to boost the focus on core pathology services.
He said the review found pathology services were safe and of high standard.
“As we announced in December 2014, the review also highlighted that overall efficiency of SA Pathology is significantly less than interstate and relevant international peers,” he said.
“By accepting these recommendations, we are ensuring SA Pathology will deliver efficient and high-quality pathology services to the South Australian community.”
Ernst and Young’s independent report found SA Pathology’s cost of providing public diagnostic services was 126 per cent of the Medicare benefits schedule and that was well above the industry-accepted benchmark of 85 per cent or less.
The South Australian Government ruled out earlier in the year the report’s other recommendation — privatising pathology services in regional areas.
It said 240 jobs in regional SA communities would be maintained.