Western Health maintains its cash reserves are stable, despite an auditor-general’s report listing it as high risk of running out of money.
The report, which revealed the financial status of the state’s 87 public hospitals, showed Western Health, which includes Sunshine Hospital, had an average of three days’ worth of cash in reserve this year – well below the five-year average of 12 days.
Hospitals with 15 days or fewer of cash reserves were judged to be generating insufficient cash to fund operations.
But Western Health executive finance director Mark Lawrence stressed no services were at risk.
“Our actual cash position was 16 days [in reserve], reasonably high considering the statewide five-year average of around 12.” he said. ‘‘None of our services is at risk as a result of cash reserves.”
The report said cash holdings at 23 public hospitals were at less than seven days on June 30.
“These hospitals could continue to operate for only a week if there was a delay in their next funding instalment,” Auditor-General John Doyle said.
