ATTENTION: HEALTH REPORTER NO. OF PAGES:1

MEDIA STATEMENT FOR IMMEDIATE RELEASE,
FRIDAY 12 MAY 2000

“GOVERNMENT WISE TO REJECT PRIVATE TAKE-OVER OF NEW MENTAL HEALTH FACILITY”

“The government has made a wise decision in rejecting Capital Coast Health’s plan to allow a new mental health facility to be built and managed by a private consortium,” said Mr Ian Powell, Executive Director of the Association of Salaried Medical Specialists, today.

“Private ownership and management of public facilities has been controversial in Britain. It has led to major concerns over reduced services. The need to make a profit has been a higher priority than the level of patient services to be provided.”

“In Britain hospitals have been forced into these cumbersome arrangements because of short-term gain. However, there is a greater risk of medium to long term loss both financially and to patients.”

“We commend the government for its cautious wisdom in declining the approach from Capital Coast and for being pragmatic in its decision,” concluded Mr Powell.

Ian Powell
EXECUTIVE DIRECTOR

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