SA Liberals target health, Workcover

February 16, 1994
Issue 

By Chris Spindler

ADELAIDE — When state parliament convened on February 9, it started to bring home the dramatic changes the new Liberal government intends to make in favour of employers, at the expense of the public and workers.

Along with the proposed privatisation of State Transport Authority bus routes, the most recent changes include productivity-based health systems, banning compulsory unionism and slashing Workcover claims.

Changes to the health system from July 1 mean that hospital funding will be linked to the number of operations and the type of operation each hospital performs.

Health minister Michael Armitage claims this represents "innovation and incentive", the implication is that the quicker a hospital can shove patients through, the more funding it will receive. With productivity being measured in much the same way it is on the factory floor, patient care will resemble production line processing.

Armitage basically admitted this when he said that the more "efficient" hospitals would attract more funding and the less efficient would have to increase their efficiency.

Promoting the "Casemix" system, Armitage said, "... hospitals should be rewarded if they become competitive". Casemix is not limited to Liberal governments: the system is marked for use by the federal Labor government.

On industrial relations, the new government is proposing a ban on compulsory unionism in the private sector. This could affect up to 330,000 workers currently covered by state awards.

As well, proposed cuts to workers' compensation cover for injury and stress will leave many workers without compensation. Stress-related claims will become virtually impossible.

Compensation will be cut for injuries sustained on the way to and from work and during lunch breaks and other authorised breaks.

Money "saved" from the tighter restrictions will be passed on directly to employers by reducing their Workcover levy by approximately 0.25%. This represents about $100 million a year.

The government's aim is to decrease the Workcover levy from the current 2.8% to 1.8% within 18 months.

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