The Tasmanian Minister for Health, Michelle O’Byrne, has announced a further $25 million in health budget savings measures as part of the $100 million of required savings from the state’s $1.7 billion health and human services budget. The latest cost cutting takes the the savings announced since the State Budget to more than $70 million.

 

Ms O’Byrne said the latest savings strategies included further measures to reduce the costs behind health care delivery in Tasmania through achieving a leaner and more efficient bureaucracy.

 

“These measures save taxpayers a further $25 million, taking the savings announced since the State Budget to more than $70 million.

 

“By putting in place a leaner health bureaucracy we will deliver an additional $3 million per year.

 

“In addition, a further $3.3 million will be delivered this financial year by restructuring and reviewing the workforce at the Southern Tasmania Area Health Service, including a management restructure.

 

“The savings add to the $3 million Middle Management Reduction Strategy I announced last month and the Workforce Renewal Incentive Plan which is currently underway, encouraging long-term employees to consider leaving the service.”

 

Ms O’Byrne said a wide review of workforce productivity and efficiency within the DHHS was necessary in preparation for national health reforms next year.

 

“Our aim is to work leaner, smarter and more efficiently. We need to remove the costs that sit behind our service delivery, and we need to look at every single part of our operations in order to do that."

 

The latest savings strategies include: 

 

Workforce Restructure and Review at the Southern Tasmania Area Health Service (STAHS) – redesigning the management structure at STAHS and reviewing job role design to improve workforce utilisation and productivity, saving $3.3 million this financial year, and $17.2 million over the next three years.

 

Review, design and implement support systems at STAHS - throughstrengthening internal controls and improving productivity at STAHS, this will save $5.5 million this financial year, and $26.5 million over the next three years.

 

Strategic Review of Statewide and Mental Health Services (SMHS) – by redesigning services and increasing productivity in SMHS, $5.7 million would be saved this financial year

 

More details of the savings can be found at http://www.dhhs.tas.gov.au/about_the_department/savings