$50m Epworth hospital deal ‘stinks’, call in Ombudsman, says MP

By NOEL MURPHY

CALL in the Ombudsman because “something stinks” about a secret $50 million Epworth Hospital deal at Waurn Ponds, says Bellarine MP Lisa Neville.

The former Barwon Health chair said the Ombudsman’s office should investigate State Government’s $50 million deal for Epworth to include public health care services within its proposed private teaching hospital at Deakin Universtiy.
The Government struck the deal earlier this month after halting its tender process for a promised public hospital at Waurn Ponds.
The Epworth deal involves 32 public beds, same-day surgery theatres, chemotherapy and renal dialysis services within the $277 million teaching hospital, two years behind its initially scheduled opening date of May 2013.
The deal pushed St John of God, which recently completed a $65 million hospital expansion in Geelong, out of the running.
“Ms Neville said the Ombudsman could investigate the dumped tender process, “who stopped it” and the “deals and arrangements” with Epworth,” .
“Something stinks about this and I’d certainly be encouraging the Ombudsman to have an investigation into this matter.”
Ms Neville described the Government’s refusal to explain the deal on grounds of commercial confidence as “absolutely too convenient”.
“There was a process that was sort of advertised, that St John of God had also submitted for, and out of the blue a letter arrived saying they were suspending the tender process and exclusively dealing with Epworth. There’s been no answer about why Epworth from the Government at all.
“They continue to claim confidentiality because of negotiations but this is taxpayer money and there was a secret process to exclusively hand over not just $50 million to Epworth but ongoing funding for public beds as well.
“The taxpayer has already given to some $12 million in federal funds and $3 million in State funds. What’s happened to that money?
“Why hasn’t Epworth proceeded to date? Why is the government backing away from its promise to build and instead doing secret deals with a private hospital?”
Epworth’s board declined to questions from the Independent on the grounds it was an applicant in the tender process.
Health Minister David Davis said no deal had been done with Epworth.
“There is a strict process in place regarding the exclusive negotiation process. The exclusive negotiation process will commence shortly with the issue of tender documentation to Epworth,” he said.
“Epworth will be required to provide a proposal to the state (that) demonstrates value for money.”
Mr Davis said “probity and legal advice” confirmed the state followed proper process “at all times” during the procurement process.
“The Victorian Coalition Government will deliver its election commitment in full. The project was funded with a clear capital allocation in the 2013/2014 budget.”

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What the Independent asked Epworth and Health Minister Davis:

Can the Epworth board please comment as to how its exclusive arrangement with the State Government will deliver greater efficiency without having been submitted to an open public process?

Does the board believe it is entitled to exclusive access to $50 million of taxpayer funds when its plans are running close to two years behind schedule?

Can the board comment on Medicare Local Barwon’s call for a government-appointed “middle man” to keep Epworth accountable?

Why is Epworth running behind with its plans for Waurn Ponds?

Has Epworth experienced problems obtaining finance for its $277 million project?