Mayor Gutted Over Hospital Closure

May 15, 2015

South Burnett Mayor Wayne Kratzmann says he’s gutted by the news today the South Burnett Private Hospital in Kingaroy will close on June 30.

Pulse Health CEO Phillipa Blakey visited Kingaroy today to advise specialists, staff and Council they would shut the doors of the facility in six weeks.

The decision will effectively mean the end of the 22-bed facility and the loss of 20 full-time equivalent jobs, although Pulse Health has offered to relocate staff (see below).

Asked by southburnett.com.au if there was anything that anyone could do to change Pulse Health’s mind, Ms Blakey’s answer was simple: “No”.

Mayor Wayne Kratzmann said he was deeply disappointed by the news.

He flew to Sydney last week for a face-to-face meeting with Pulse Health and had been optimistic the company could be persuaded to reconsider the matter.

“I think this situation has been brought about by a combination of circumstances,” the Mayor said.

“Not enough people have been using the hospital lately; local doctors haven’t been referring patients there; Pulse haven’t been doing any marketing themselves; and the number of private patients at the Kingaroy public hospital has increased substantially in recent times because of Queensland Health policies.

New Hospital ‘Must Now Be A Priority’ Member for Nanango Deb Frecklington said she was extremely disappointed with the news. She said she totally understood how frustrated the region must feel, given the amount of community support shown towards the facility for so many years. “Our community has fundraised and taken this private operation under its wing because it knew how important this health service was to our region,” she said. “This decision is going to leave a very large hole in the provision of health services in the South Burnett. “Over the past three years, our former LNP Government and I worked closely with the Darling Downs Hospital and Health Service Board to improve the level of health service in the South Burnett, particularly at the Kingaroy Hospital. I believe this has been very successful but at the same time, it was always with the intention of continuing to work with the private health sector. “It has been my goal since being elected to achieve a brand new hospital for the South Burnett, and in the event of the private hospital closure, the need has never been so great. “I will be urging the new Health Minister not to forget the regions, and put Kingaroy Hospital at the top of the capital works list as a matter of priority.”

He said that the correlation of the increase in private patients at the public hospital and the drop in patient numbers at the private hospital was “too obvious” to be overlooked despite claims to the contrary.

“But with the change of State Government, getting a new public hospital now seems unlikely in the short term. So this has just helped put another nail in the private hospital’s coffin,” he said.

The Mayor said Pulse Health hadn’t fostered a good rapport with local GPs.

“I thought their marketing let them down,” he said. “It is bizarre. They didn’t develop a relationship with local doctors.”

He said he had even offered for Council to maybe provide someone to help in this – and had already spoken to possible “ambassadors for the hospital”, including sports stars Matt Ballin, Holly Ferling and Carl Rackemann.

The Mayor said Council would be contacting other possible operators – and had spoken to Ramsay Health already. He planned to go to Brisbane next week in a last-ditch effort to see if anyone could be found to take over the hospital’s operation.

But given the short time-frame until Pulse pulls out, he wasn’t optimistic this could be achieved.

“This is a tragedy for our region,” the Mayor said.

“I spoke to one of the private hospital’s specialists last week and he told me he now sees between 30 and 40 patients on a two-day visit.

“Those people will now have to travel to Brisbane or Toowoomba to receive the same service.

“He was just one of 10 specialists who have been looking after local patients through the hospital, so that gives some idea of how many people are going to be affected by Pulse’s decision.”

The Mayor was also critical of the Federal and State Government’s roles in the matter.

“Really, medical health services are not the responsibility of local government. This should be addressed by the Federal Government, the State Government or both,” he said.

“But we’ve been left to try to keep this hospital open and running ever since 2002.

“And we’ve done that at no cost to ratepayers, but it’s not really our job.”

The Mayor also discounted the idea of Council taking over running the hospital itself.

“We don’t have any expertise in managing a hospital so this is not an option we’d seriously consider.

“It requires a professional medical management company.

“And if we can’t find another operator willing to take over from Pulse Health by June 30, the South Burnett will lose its private hospital.

“That means patients are going to have to travel further and longer to get the services they once had on their doorstep. And I feel gutted about that.”

Queensland Health has previously advised the South Burnett Regional Council that if the hospital closes, it could not reopen until extensive modifications were made to bring the facility up to contemporary standards.

This would require an outlay that could make the project unviable.

* * *

Statement by Pulse Health:

Plans are already underway to relocate staff at the South Burnett Private Hospital  to other Pulse Health hospitals after the Company announced today it is closing the loss-making facility.

Pulse Health Managing Director and Chief Executive Officer Ms Phillipa Blakey personally informed staff, doctors and other medical specialists who work at the hospital when she visited the site today that it would close on June 30.

The small 22-bed facility at Kingaroy is owned by the South Burnett Regional Council and has been operated by Pulse since 2008.

“It is with reluctance and a great deal of sympathy for our staff and others involved with the hospital that we have decided to close,” Ms Blakey said.

“Our commitment now to our affected staff is to do our best to work with them – if they so wish – to be transferred to our other hospitals.

“We understand this will not be appealing to all of them due to their personal circumstances, but where possible, we will do what we can to help them remain with Pulse.

“It is no secret the hospital has continued to lose money over recent times, and was no longer viable to remain open.

“We have not made this decision lightly, and it is a decision made despite the best endeavours of both Pulse Health and the regional council to make the hospital a sustainable, ongoing business.

“Both parties have invested considerably – including in theatre equipment for endoscopy procedures and eye surgery, and infrastructure improvements – to try to improve the hospital’s profitability, but unfortunately, that hasn’t occurred.”

Ms Blakey said Queensland Health’s policy of encouraging privately insured patients to remain in public hospitals and utilise their health insurance has impacted significantly on the revenue of South Burnett Private Hospital – and other private hospitals throughout the State.

And even despite the recent partial relaxation of this policy in Kingaroy resulting in some improvement, it has been insufficient to guarantee the ongoing viability of the hospital.

“We understand how difficult this decision will be for our loyal, dedicated, long-term staff – as well as the associated businesses that rely on the hospital for the viability of their own business,” Ms Blakey said.

“We also understand the impact it will have on a group of very loyal doctors and specialists that have provided vital medical care at the hospital for a prolonged period of time.

“Our focus right now is to work with our staff and where possible find suitable alternative employment at our other hospitals for those who want it.”

Related articles:

• Hospital Discussions ‘Fruitful’
• May Day Call To Save Hospital
• Hospital Renovations Begin Soon
• Glimpse Into A Healthy Future
• Pulse Confirms It Will Run Hospital
• Hospital Talks ‘Progressing Well’
• Pulse ‘Highly Likely’ To Run Hospital
• Pulse ‘Keen To Run Hospital’
• Council To Run Private Hospital
• Talks On Hospital Future

  Council, Kingaroy