NRAH is a ‘Fiscal Vacuum Cleaner’

Shadow Minister for Health Rob Lucas said today that the new Royal Adelaide Hospital (NRAH) was like a ‘fiscal vacuum cleaner’, sucking virtually every last dollar out of the health budget to the detriment of other projects.
“It is already apparent that the $400 million a year from 2016 just for the non-clinical costs of the hospital will lead to health cuts in many other areas,” said Shadow Minister for Health Rob Lucas.
“However we are now seeing the impact of the cost of the NRAH on other capital works projects this year and the next few years leading up to 2016.”
In addition to the $1.85 billion PPP deal to build the hospital, taxpayers have to find another $244 million before 2016 to fund capital works associated with the project out of the health capital works budget.
An analysis of budget papers from 2011-12 to 2013-14 shows that the expected completion date for some projects such as the Modbury Hospital redevelopment have been delayed by up to five years as outlined in the following table.
Delay(mths) 11/12 Budget 13/14 Budget Project
60 JunQtr 2013 JunQtr 2018 Modbury Hospital Redevelopment
30 DecQtr 2012 JunQtr 2015 James Nash House Redevelopment
24 JunQtr 2014 JunQtr 2016 Women’s and Children’s Hospital upgrade
24 JunQtr 2013 JunQtr 2015 Repatriation Hospital-Sub Acute Care beds
24 JunQtr 2013 JunQtr 2015 Mental Health Early Intervention Carefacilities
18 SepQtr 2012 MarQtr 2014 QEH Stage 2 Redevelopment
12 JunQtr 2013 JunQtr 2014 Whyalla Hospital Redevelopment
12 JunQtr 2013 JunQtr 2014 Country Community Rehab Centres
Whilst in some cases other factors might also have contributed to delays in the estimated completion date, it is clear that the need to squeeze $244 millon for the NRAH into the health capital works budget has meant that many other projects have had to be delayed and in some cases, the costs reduced as well.
“It is now time for Premier Weatherill and Minister Snelling to come clean and outline what the real impacts of the NRAH project will be on all health services and health projects in the future,” said Mr Lucas.
“SA families deserve to know the real impact of the contract they signed and all of this should be revealed before next year’s state election.”