Sunshine Coast health boss walks back 'grim' assessment of state budget

Queensland's opposition leader says he holds "significant concerns" for the head of the Sunshine Coast's Hospital and Health Service, who told staff parts of the government's budget was "grim" and "demoralising".Chief executive Dr Peter Gillies made the comments at a leaked staff town hall earlier this month, but today watered down his remarks as he fronted budget estimates.In his address to staff, Dr Gillies said the service was going to struggle to keep up with increasing demand, despite a record budget, because there was "no" funding for growth."But the reality for health services on the ground, our health service anyway, [is] we're getting no growth for the year, which I've never seen before," Dr Gillies told staff in the town hall.Peter Gillies told a staff town hall that this year's budget for the organisation was "grim". (Supplied: SCHHS)In that same meeting, he said it was "grim" and "demoralising" the hospital would not be able to begin tertiary services, which would allow it to provide a high level of specialist care, because of the budget. He said this was despite plans to do so for "a number of years"."Yes, I did say that, and it was an unfortunate choice of words," Dr Gillies said at budget estimates today."I would rephrase it, I think, if I had the opportunity."Disappointed but understanding would probably be a better way of describing it than demoralising."Today Dr Gillies conceded growth was factored into the budget at around 3.5 per per year, but he told staff in the town hall the hospital's growth was forecast at 6 per cent per annum.In response to questions, Dr Gillies and Metro North Hospital and Health Service chief executive Nick Steele said they were both given a draft service agreement in March that included more funding for growth than the final version issued after the budget.Queensland Opposition Leader Steven Miles says it is a "very grim situation".Opposition Leader Steven Miles said this appears to be "a very, very grim situation"."What you've heard from Sunshine Coast is what people are telling us behind the scenes at every other HHS; that they've never experienced a budget like this one, never been asked to deliver more services, higher KPI's with less effective funding," Mr Miles said."The draft service level agreement that is distributed in March is exactly that — it is a draft," Queensland Health Director-General, Dr David Rosengren, told budget estimates."It's distributed before any budget determinations are made or any allocations, so it is a draft."Queensland Health director-general David Rosengren appeared at budget estimates on Tuesday alongside Health Minister Tim Nicholls. (ABC News: Mark Leonardi)During budget estimates, Labor attempted to ask Dr Rosengren whether he could promise no retaliatory action would be taken against Dr Gillies as a result of his comments, but it was ruled out of order.In response to Mr Miles, Health Minister Tim Nicholls said there had been "no suggestion of any such thing". "It's offensive in the extreme, and it doesn't go to the examination of the accounts to the expenditure of government," he said.Queensland Health Minister Tim Nicholls at budget estimates on Tuesday. (ABC News)Speaking outside of the chamber, Mr Miles said those in the service needed to be able to speak without fear from their "political masters"."I have significant concerns for the chief executive of the Sunshine Coast Health and Hospital Service," he said."We called on the government to rule out retaliatory action against him for sharing with his staff what the budget would mean for them. They refused to do so."In response to questions, a spokesperson for Health Minister Tim Nicholls reiterated that the state budget includes a record $35.5 billion investment in health services, including $2.1 billion for Sunshine Coast Hospital and Health Service operations.