O’Byrne picks health boss

DOORSTOP MICHELLE O’BYRNE

WEDNESDAY 11 JANUARY 2012

THO CHAIR / LIB POLICY

Michelle O’Byrne – Minister for Health

Note: bad wind interference

O’BYRNE Today we’re announcing the appointment of the Chair, the single Chair, of the Tasmanian Health Organisations, and this person will lead Tasmania through national health reform to a new way of providing health services within Tasmania. Err, we’re announcing today that Mr Graeme Houghton has been appointed. He has significant experience.., err, in Victoria, has Tasmanian experience from his engagement with Healthscope and recently.., was in fact involved in the surveying of the Royal Hobart Hospital, so brings national experience and also local knowledge.

QUESTION What will be his role, what will he actually do in that position?

O’BYRNE His role will be to chair the three boards that will operate within our Health Organisations around Tasmania. So, his job is to really lead and drive the way we provide health services natio.., err, for our.., for our entire community. Historically we’ve had a.., a departmental bureaucracy that runs Health, what we’re now [inaudible] Parliament still has ultimate responsibility for healthcare, we’re really giving those decision-makings to local bodies, to local communities, to spend their dollar as wisely as possible.

QUESTION How much of a shift is this to the way things were?

O’BYRNE Well, this changes us from a bureau.., bureaucratic, department-run health system to local.., err, control and decision-making, bearing in mind that many of our.., err, community [inaudible] use all areas of our health service, that we do need to have consistency for their patient journey, but this actually means that we are fundamentally changing to a statutory authority to deliver health services, which will in many ways [inaudible] political interference, the decision are made for health policy really, without that.., political pressure that can be applied to health [inaudible].

QUESTION Can they [inaudible] any of the political messages that are made in Parliament [inaudible]?

O’BYRNE In the end, under the Westminster system, the Parliament has got to be responsible for.., the provision of health services in Tasmania, and that’s why [inaudible].., taxpayers.., pay for their services [inaudible] need to be that level of scrutiny. What will happen is that we’ll be moving to a purchaser & provider model, so the State Government will purchase health services from our Health Organisations. Err, these Health Organisations [inaudible] ultimately with their Chair, Graeme Houghton now, will be responsible for providing that service in the most cost-effective, best way that they can, making local decisions and local efficiencies.

QUESTION Can they [inaudible] if they think they’re not getting enough funding?

O’BYRNE Well, certainly.., we’ll be negotiating with our Health Organisations their funding and [inaudible] arrangements. They will argue (laughingly) very strongly for more money, and obviously we will have to live within the means that we’re provided with from Treasury. Err, but this is about making sure that the decisions can be made locally, and therefore you do get a more efficient spend, rather than a statewide bureaucratic model.

QUESTION Surely with all the cuts and wherever else [inaudible] would be a difficult position that he’s walked in?

O’BYRNE Certainly there are challenges within Tasmania with our budgetary circumstance, and we’re seeing that same budgetary circumstance start to play out in Health in other states now as well. This is however a really good, exciting opportunity, because we are taking Health away from.., err.., a throw-money-at-it-and-hope-it’s-all-okay model through to being responsible, a provider-purchaser model, so that we can deliver local decision-making in [inaudible] health budget. This is actually a very exciting time for someone to come in.., and lead the new direction in Health in Tasmania.

QUESTION Are you saying this is about taking over from the bureaucracy? Is there any amount of money that’s been saved to provide for his $150,000 a year salary?

O’BYRNE Well, $150,000 is the cost.., to have a Chair.., err, for the three THOs. What we will be saving within the Department is that we’ll be moving from that department-model to a much smaller ministry. It’ll be the [inaudible] of Government to purchase services, to make sure that they’re being provided, to accredit them to quality and safety. Err, it will be the job of the THOs to deliver those services within their budget to the best possible way. This will really put the focus on making sure that every dollar that is spent in health is spent wisely.

QUESTION Is there any [inaudible] role on going away from that Department, the bureaucracy onward?

O’BYRNE Significant savings have been identified within the budget process by reducing the size of the bureaucracy. Err, in the next couple of weeks [inaudible] be made a much bigger picture of just how much smaller the Department of Health will be.

QUESTION And so this is.., is the Chair of the three Health Organisations in Tasmania.., err, why is that the preferred model.., the one?

O’BYRNE We went to three THOs because it very much reflected the Area Health Service model that has been working quite well in Tasmania over the last few years and, importantly, people need to be able to have a say locally about how the services are delivered. It was very clear [inaudible] consultation that people wanted local decision-making. Err, it’s also very clear from our conversations with clinicians that we needed consistency across those areas. That led to three THOs with one.., Chair.

QUESTION [inaudible]

O’BYRNE I’m not [inaudible]

QUESTION Yeah. So, what do you think of [inaudible]?

O’BYRNE It’s been nearly two years since the last election.., and this is the first time that a policy has been produced by the Liberal Party that is anything other than.., err, the blatant negativity that we’ve seen. They’ve had an opportunity now to move forward their direction, their view, their way to take us forward and, frankly, after reading the two-page document they.., failed that test.

QUESTION What do you think of their claims about the GST, that we could be more independent?

O’BYRNE Well, every state seeks to maximise its capacity to.., increase revenue. Every state.., actively [inaudible] business opportunities. Tasmania is doing that already. I can’t see anything in the document that shows that Mr Hodgman has a plan, how he might make that work.

• LinkedIn: All about Graeme Houghton: HERE