Ballan District Health and Care could be forced to scale back services unless the state or federal government steps in to provide financial support.
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Structural and funding issues are plaguing the healthcare service’s short and long term future, with a 2017/2018 financial year loss of $480,000 which is projected to increase to $800,000 if changes are not made to its operations.
Any reduction in services could put jobs at risk at the region’s biggest employer, along with indirect jobs among local businesses.
The healthcare service’s unique structure, as a community-owned service means it is classified as a private hospital despite having 10 public hospital beds and more than 90 per cent of its services bulk-billed.
BDHC board president Lyn Gunnell said a complete organisational review would be carried out over the next two months to determine the best way forward.
That review will be completed under new interim chief executive officer John Davies, who takes on the role on Monday following the resignation of previous chief Wayne Weaire on July 30.
“We need to look at what future the may hold and whether the organisation is preparing itself for that,” Ms Gunnell said.
“Now more than ever, we are working with government and other health services to determine how and when we can transition BDHC from a position of financial strain to financial growth,” she said.
Ballan District Health and Care employs 171 staff to provide 52 aged care beds and 10 hospital beds, alongside a a GP clinic, allied healthcare, x-ray, dental, an indoor pool, childcare and in-home support services.
Rapid growth in the region and the five-year Medicare rebate freeze means demand cannot be met with the current input from state and federal health departments.
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“The board has to abide by the Corporations Act and can’t run insolvent … so we will have to make strong decisions to make sure we work within the budget that suits the operation,” said board member and Moorabool mayor Paul Tatchell.
“As mayor, any loss would be a kick in the guts if it had to be scaled back to be kept open.”
A spokesperson for Victorian health minister Jill Hennessy said the government would explore necessary measures to ensure the service’s sustainability.
“We're working closely with the health service to ensure all residents get the care they need, close to home.”