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Health network recovers after emergency financial surgery

Workplace Advisory
Hospital corridor blurred
KordaMentha partner Chris Martin has been quoted in an article in the Weekend Australian on the dramatic improvement in the financial performance of one of Australia’s largest public health networks, the Central Adelaide Local Health Network.

CALHN was heading towards a loss of more than $500 million over two years before the South Australian Government appointed KordaMentha as administrators to turn around the performance of the health network.  

With the South Australian Government requiring an improvement in the health network’s financial performance of $41 million in the first six months of a three-year program, the KordaMentha team doubled the target, already delivering savings of $105 million. Chris added that the savings had been achieved without compromising patient outcomes. 

Chris explained that a common view was that putting more money into healthcare would deliver better patient outcomes, but that administrators had found, in many cases, spending more money on healthcare was a sign of deteriorating health outcomes. “Most of the clinical key performance indicators improved, so we showed the organisation that you can deliver better healthcare cheaper,” he said.

ABL Partner Bridget Little and Senior Associate Rachel Soh, who have advised on the IR and employment aspects of this important turnaround journey, congratulated the teams from KordaMentha and CALHN for their work in achieving such a significant financial and operational recovery to date. 

To read the coverage in The Australian, click here.

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