We have completed a review of regional local health networks (regional LHNs) property assets. We examined whether the arrangements to manage the maintenance of those assets were effective.
Together with its staff, the assets used by each Regional Local Health Network (Regional LHNs) are critical to the delivery of safe and reliable services to the public at the required level. Regional LHNs manage over $821 million in property assets at 168 different sites across regional South Australia.
We found that processes, practices, systems and arrangements established by the State to manage the maintenance of regional health property assets were not effective. We identified numerous gaps in fundamental areas including:
- clearly defined roles and responsibilities were not established and agreed with DPTI
- foundational strategies, policies and plans for asset management were not established
- fit-for-purpose information systems with complete and reliable asset data were not established
- maintenance budgets were based on the previous years’ budget rather than the maintenance needs and priorities
- no effective certification that works by external contractors were completed to an appropriate standard, for actual work performed and for a reasonable price.
In line with the new governance arrangements, Regional LHNs need to take responsibility for their assets and work with the mandated facilities management service provider and Department for Health and Wellbeing to implement remedial strategies and actions. Further, Regional LHNs need to:
- consider how the new governance arrangements impact on the relationships and responsibilities of all parties involved
- establish effective processes for the six separate Regional LHNs to work together to collectively address remedial strategies and actions.