Concerns have been raised over the cost of the Griffith Community Private Hospital following reports the operators are seeking to recoup fit-out expenses.
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The fit-out of the hospital, including a new $2.3 million sterilisation unit, is expected to cost close to $4.7 million.
David Faktor from St Vincent's Health Australia said they had always been upfront about plans to conduct specific fundraising activities to assist in making the project sustainable in the long-term.
“The initial capital investment of $2.4 million has grown by an additional $2.3 million because of the need to build and equip a sterilising services department in the hospital,” Mr Faktor said.
“If this commitment was not made by the St Vincent’s board, the project would not have progressed.
“St Vincent’s is therefore looking to offset as much of its $4.7 million capital outlay as possible through fundraising to ensure the hospital is not burdened with a debt from the start, and ensure the hospital is both viable and sustainable.”
Councillor Dal Broi said there was no contractual requirement for the community to pay for the fit-out.
“The deal was that St Vincent’s would always do the fit-out and that was never questioned,” Cr Dal Broi said.
“Whilst there’s nothing in writing, there’s no contract agreement and nothing that we as a council have signed up to, St Vincent’s said they wanted to recoup some of their expenses.”
St Vincent’s Health Australia had signed a five-year lease for the operation of the facility which is due for completion in 2016. Griffith mayor John Dal Broi said St Vincent’s would then assess the viability of the operation and the cost of the fit-out was a significant factor.
“St Vincent’s have a team whose job it is to go out and raise money,” Cr Dal Broi said.
“St Vincent’s are still out there looking for contributions, it’s not something being driven by council, it’s being done by their team.”
If St Vincent’s decided to discontinue their operation in five years’ time, Cr Dal Broi said, the community would still own the facility and all the equipment inside, meaning another operator could take over the hospital.
Griffith Business Chamber vice president Paul Pierotti said it was “beyond belief” for Griffith City Council to sign a lease without knowing what was and was not included.
“How do you draw up a lease without knowing what’s included?” Mr Pierotti asked.
“Who provides for the up-keep of the equipment, the maintenance and repair?
“How did we get to here without asking these questions in the first place?”
