Monday 23 February 2009
UNPAID HOSPITAL BILLS: DELLA BOSCA HAS A RECORD OF LYING
Freedom Of Information figures released by the NSW Opposition today show Health Minister John Della Bosca has been deliberately misleading the public over the true financial position of the health service, Shadow Minister for Health Jillian Skinner said today.
“Revelations our hospitals owe $132 million in overdue bills to businesses across NSW show Health Minister John Della Bosca can’t manage his portfolio,” Mrs Skinner said.
“This is a bloke who wanted to be Treasurer – he can’t even organise for his hospitals to pay their bills on time,” she said.
“John Della Bosca has been claiming things have been improving, when in fact they’ve been getting worse.”
As at 30 June 2008 the area health services had $75.1 million owing in overdue accounts according to the NSW Health annual report (p67). On 31 October 2008 John Della Bosca told Alan Jones on 2GB:
“What I’ve been doing is putting in place a whole series of things with the director general, to make sure that we are getting on top of this creditors cash flow problem. And I think we’re very, very close to being on top of it.”
On 25 September 2008 John Della Bosca told Parliament, in reference to Labor’s 45 day benchmark for paying bills:
“My guarantee is that the benchmark that has been established for a long time will be met.”
On 26 November 2008 John Della Bosca was forced to admit the problem had gotten worse, when he stated:
“At the end of the first quarter this financial year $116 million was overdue for creditors…what is changing is the capacity of the area health services, particularly those that have been experiencing these difficulties, to meet the benchmarks we have set.”
Nathan Rees told Parliament a day earlier on 25 November that:
“It is not acceptable that creditors are owed overdue amounts.”
Nathan Rees must have forgotten to tell John Della Bosca. By 31 December 2008 the total overdue amount owed by the area health services had increased to $132 million.
The data also reveals there are 75,477 late invoices worth an average $1,749 each.
Mrs Skinner said only a Liberal/National Government in NSW will ensure small businesses with contracts of up to $1 million will be paid within 30 days.
“Time and time again, under Labor, successive Premiers and Health Minister have promised to fix the problem and ensure bills are paid on time – it never gets done.
“Given Mr Della Bosca’s previous claims of improvement, why should anyone believe him?
“Under Labor the public has witnessed the humiliation of hospital staff forced to go to the local vet to purchase bandages because regular suppliers had not been paid.
“The imposition of our 30 day mandatory payment code, and the introduction of automatic penalty interest payments for unpaid bills, will change that.
“It will meet the needs of the State’s small business suppliers and improve the operation of the NSW public sector, especially our hospitals,” Mrs Skinner said.