Calvary public hospital: Why the northside hospital is being moved into public hands

The government's decision to bring Calvary Public Hospital into public hands has not been easy, and it is not one we have taken quickly or lightly.

Calvary has been delivering public hospital services in the ACT for more than 40 years, and we understand how disappointing this decision is for Calvary. We also recognise this will be a time of stress and uncertainty for Calvary's public hospital staff and we are doing everything we can to reassure them that they will keep the same job, with the same team, on the same pay and conditions, in a hospital that reflects their values and commitment to high quality care.

So then, why have we made this decision?

While it is no secret that Calvary and the ACT government have at times had a strained relationship, this decision is not about that. In fact, over recent years the relationship has probably been stronger than ever. And yet, despite these good personal relationships and the commitment of the individuals involved, fragmentation and barriers to genuinely integrated and networked services remain.

This tells us that the issues are structural. Having one of our two acute public hospital providers run by a non-government provider - any non-government provider - works against system efficiency and sustainability. It limits the capacity to plan and load share across the system.

For many years the ACT government has been hearing from staff and stakeholders across the public health system that our hospitals and community-based services need to be better connected. We have also heard from staff about their experiences being stuck between two organisations.

This is not a criticism of Calvary - it is the reality of a contracted service.

READ MORE:

And the contract we have is particularly challenging. With a remaining life of almost 76 years, the contract requires the ACT government to fund all infrastructure improvements and to keep paying Calvary more each year to run the hospital, with complex negotiations for any service change. The arrangement restricts the capacity to operate "hub and spoke" models of care in areas where the territory can only support one specialist service, such as paediatrics.

Understanding all the challenges, the ACT government sought to work with Calvary over many months to reach an agreed position on the development of a new northside hospital on the Calvary public hospital site in Bruce. We wanted to own the land on which the hospital would be built and to have a more flexible contract. While we have been clear that these negotiations were confidential and we won't be providing a running commentary, I can confirm Calvary's public statement that the ACT government offered it the opportunity to enter into a 25-year modern services agreement for the new northside hospital.

Recognising that an agreed sale of Calvary-owned land would require agreement from the Vatican, the government also advised Calvary in April 2022 that it would consider legislating to acquire the land if necessary.

Ultimately, no agreement could be reached, and the government needed to make a decision in the long-term best interests of Canberrans.

At a time when the pressure on public hospitals is greater than ever and is only forecast to grow, the government concluded that having two public hospital providers is a level of inefficiency the ACT can no longer afford. Consolidating our public hospitals to create a single integrated network will allow us to better coordinate our health services, distribute resources effectively, strengthen the capacity of our workforce and plan the infrastructure we need on a territory-wide basis.

READ MORE:

Of course, public health services will continue to be delivered by non-government providers in a range of areas. Like other jurisdictions, we rely on our partnerships with private hospitals to deliver on our elective surgery targets - and this includes both Calvary John James and Calvary Bruce Private. I am confident that we will continue to be able to work with them to deliver these services and was pleased to see the national CEO say they remain committed to Canberra.

My final and most important message is to Calvary public hospital staff.

I understand that this news comes on top of three very difficult years. I can assure you that our first priority through this transition is to ensure you are supported to continue doing what you love - providing professional, compassionate care for Canberrans.

I've visited Calvary public hospital many times in the last few years, and I know people work there because you want to be somewhere that's large enough to deliver, but small enough to care. I understand that, for many of you, working at Calvary public hospital is part of your identity.

Canberra Health Services also understands this and is committed to respecting the differences in culture, values and ways of doing things.

It's been a privilege to talk to some of Calvary's fantastic nurses and midwives over the last couple of days as we've celebrated International Nurses and Midwives Week. Thank you for sharing your fears and hopes with me. I can assure you we are listening and we will work with you through this change.