PRIME MINISTER MISLEADING ON CHARITABLE HOSPITALS
The Prime Minister's admission that charitable not for profit hospitals had been overlooked in proposed fringe benefits tax amendments was inadequate and misleading according to the Church and Charitable Private Hospitals Association (CCPHA). The Prime Minister was responding, on 3AW's Neil Mitchell program this morning, to earlier criticism by Mr. Denis Hogg of the Epworth Hospital. The Prime Minister claimed that it was an oversight that private not for profit hospitals had not been included in the compensation package that will be available to public hospitals to compensate them for the proposed capping of FBT exemptions. Mr. Hogg had earlier pointed out that under the FBT Amendment Bill before the Senate, "charities that are not hospitals will be subject to a cap of $30,000 per employee to apply from April of next year, while public and not for profit hospitals will be limited to an exemption of $17,000 per employee to be introduced immediately. Furthermore the public hospitals will be compensated by federal grants of $240M over three years to pay for additional salary costs." The Prime Minister stated that not for profit hospitals would now be eligible for the same compensation as public hospitals. " It's taken media interest in our members' plight for the Government to admit their error but the Prime Minister has avoided the major issue. Even with compensation our members are still being treated more harshly than other charities and not for profit organisations. AFL players, for instance will be better off than our doctors and nurses." Mr Hogg said. "This morning was the first we had heard from the Government and we have no details. The public hospitals don't have details yet and they are already saying it's not adequate. The Prime Minister didn't offer to increase the overall amount so this morning's promise has cost the government nothing" stated Mr. Hogg. Mr Stephen Kerr, spokesman for the CCPHA (of which Epworth Hospital is a member) commented that despite John Howard's assurance, church and charitable and community (not-for-profit) hospitals will still be more disadvantaged than other not for profit organisations. "It is outrageous that wealthy sporting clubs will receive a higher level of exemptions than charitable hospitals and we intend to make the public aware of our views." "The future of not-for-profit hospitals and the services that they provide to the benefit of the whole community will be threatened. Not-for-profit hospitals provide a wide range of free or subsidised services to the broader community including emergency departments, research and teaching, free care, out reach programs, hospices, overseas patient retrieval and medical assistance." "Under the new legislation many not-for-profit hospitals that provide both hospital and other non-hospital services and will have different rates of FBT exemption for staff within the one organisation. This will lead to all sorts of problems and disputes. Many long-term medical and nursing contracts and commitments will be jeopardised by the immediate introduction of the lower cap. If anything the Prime Ministers statement will now raise expectations that salaries wont have to be cut" Mr Kerr said the CCPHA were seeking for charitable hospitals to be treated identically to other not for profit organisations in regard to fringe benefits exemptions and that our members be subject to the FBT cap of $30,000 "grossed up" per employee and that this apply from the 1st of April 2001.