Western Australia’s health system will face significant job cuts over the next eight months as the Health Department tries to reduce costs in line with national funding levels.
WA hospitals are funded using national and state formulas to match their so-called “activity level”, or the work they undertake treating patients.
Through a combination of higher wages and lower efficiency, WA hospitals require the equivalent of more staff per patient when compared to other Australian hospitals.
Under questioning from the Opposition in Question Time, Health Minister Kim Hames said that had to change.
“We know that they’re over-budget. We know they’re well in excess of staff numbers. But they need to work it out, division by division, working out how they can save FTEs (full-time equivalents),” he told Parliament.
But Dr Hames said cutting jobs and positions was not the only way hospitals could reduce costs.
“They can do a whole range of things. Changing on-call rates, changing overtime rates, changing the range of things to make sure they can retain those FTEs.”
Patients will pay the price: Opposition
But Opposition Leader Mark McGowan said health workers, including doctors and nurses, would be forced out of their jobs at a time when pressure on the hospitals was increasing.
“At a time when outpatients [departments] are under pressure, emergency departments are under pressure, surgery waiting lists are under pressure, it appears the Government will be sacking hundreds, if not up to 2,000 people, West Australian health workers,” he said.
“That includes nurses, doctors, assistants and the like in our hospitals.”
In Question Time, Opposition Health spokesman Roger Cook said more than 1,000 jobs could be lost.
“We’ve heard that at least 500 people will be sacked from Royal Perth Hospital, at least 600 from Fiona Stanley Hospital,” he told Parliament.
“What’s clear is the Barnett Government have completely stuffed up the state’s finances and it’s WA patients that are going to have to pay the price.”
Dr Hames said the changes would be made over the next eight months and at this point, it was not possible to predict the final number of job losses.
“So we won’t know how many FTEs are lost. What we know is the budget that they have to mitigate for,” he said.
Dr Hames expected the job losses would happen progressively over the coming months, with the final figure clear by mid-2016.