Mismanagement of Midland Hospital opening costs State

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20 Dec 2015 - In the December 2015 Mid Year Review, it was revealed that an additional $25.4 million was needed to cover unexpected costs due to mismanaging the transfer of staff and services to the new Midland Hospital.

The $25.4 million includes a $6.8 million appropriation to cover transition payments to staff moving outside the public sector due to the Government's decision to appoint private operator St. John of God to run the hospital, which for some reason was unforseen, and $18.6 milliion to cover voluntary separation payments to staff not moving to the new hospital.

Both costs should have been discovered well before December 2015 due to the long and rigorous process to commission new hospitals. .

 

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