Presented by Robert Clark MP		www.robertclark.net

RURAL AND REGIONAL HOSPITALS SUFFER WORKCOVER BURDEN

News Release - Wednesday, 14th November 2001

Rural and regional Victorian hospitals have been hit with big increases in their State Government imposed WorkCover bills.

The Victorian Opposition today highlighted the burden on the hospitals, with Shadow WorkCover Minister Robert Clark saying local communities were suffering from the Bracks Labor Government's botched handling of WorkCover.

Figures released in the hospitals' annual reports show that:

• Barwon Health's WorkCover cost increased from $2.31 million in 1999-2000 to $3.17 million in 2000-01 - a 37.3 per cent increase.
• Bairnsdale Regional Health Service's WorkCover cost increased from $260,000 in 1999-2000 to $363,000 in 2000-01 - a 39.6 per cent increase.
• Wonthaggi and District Hospital's WorkCover cost increased from $284,000 to $454,000 - a 59.9 per cent increase.
• Maryborough District Health Service's WorkCover costs increased from $178,000 in 1999-2000 to $279,000 in 2000-01 - a 57 per cent increase.
• Mt Alexander Hospital's WorkCover costs increased from $243,000 in 1999-2000 to $363,100 in 2000-01 - a 49 per cent increase. q Boort District Hospital's WorkCover cost increased from $19,900 in 1999-2000 to $26,900 in 2000-01 - a 35.2 per cent increase.
• Mallee Track Health and Community Service's WorkCover costs increased from $32,100 in 1999-2000 to $51,100 in 2000-01 - a 59 per cent increase.
• Cohuna District Hospital's WorkCover cost increased from $23,700 to $31,800 - a 34.2 per cent increase.
• Yarram and District Health Service's WorkCover cost increased from $19,600 to $69,700 - a 255 per cent increase.

"The Bracks Government has claimed their WorkCover changes have increased premium rates by an average of 15 per cent, and the Government has only provided extra funds to cover a 15 per cent increase," Mr Clark said.

"However, even after allowing for growth in total payrolls, it is clear that rural and regional hospitals have been hit with premium rate increases far higher than 15 per cent.

"In the past, the Government has tried to blame higher than average increases on poor workplace safety. However, the Bracks Government also changed the WorkCover rules so that the standard premium rate for hospitals was increased by a further 22 per cent, on top of the 15 per cent increase. Hospitals were not reimbursed for this extra 22 per cent slug.

"The result is that rural and regional hospitals have been left out of pocket by the Bracks Government, and the increases in WorkCover premiums are eating into their budgets and undermining their ability to serve the community and employ staff.

"Given the poor management of the WorkCover scheme by Labor, there is a high risk that premiums will rise further in future, imposing additional heavy costs on these hospitals."

Mr Clark said that the Bracks Labor Government was failing on its promise to improve health services in Victoria.

"According to the Government's own figures, waiting lists and waiting times continue to increase," Mr Clark said.

"Not only is the Bracks Government failing to improve health services, it is adding insult to injury by slugging rural and regional hospitals with these increased WorkCover bills."