Hospitals Get Advance To Pay Bills

Sydney Morning Herald

Friday February 14, 1997

NATHAN VASS

The Health Minister, Dr Refshauge, approved cash advances to rural hospitals this week so they could meet his demand that they pay a total of $10 million in overdue bills.

The advances come off their 1996-97 budget allocations. A spokeswoman for Dr Refshauge insisted last night that the advances were not enhancements or extra funding.

"They (the hospitals) have to accommodate that within the way they deal with their budget for the rest of this year," she said. "It is not extra."

Dr Refshauge said on Sunday that rural hospitals had until the close of business on Monday to pay all debts that had been outstanding for more than 45 days. A number of hospitals approached the department asking for cash advances to help them meet the demand.

The peak industry body representing public hospitals, the Health Services Association, accused the Government of operating the health system "on time payment".

The association's executive director, Mr Paul Naylor, said the need for advances or "loans" showed hospitals needed increased funding to maintain the current level of services.

"This is a position the minister has been denying while continuing to blame the management of health services," he said.

The Opposition health spokeswoman, Mrs Jillian Skinner, said the advances or "loans" would lead hospitals into greater debt.