Federal MP Luke Hartsuyker said there were alarming concerns that, under Mr Rudd’s payment for service model, many smaller hospitals could be unviable and at risk of service cutbacks or even closure.

“Although Mr Rudd’s announcement is very light on detail, the policy document does not note any new money being invested in hospitals.

“There are more questions than answers as a result of this policy. The devil will be in the detail.

“I am concerned that Mr Rudd’s payments to new “hospital networks” will only add another layer of bureaucracy to the health system.

“There are already reports that many smaller hospitals could be unviable under this model and the pressure will be on these new bureaucrats or “network managers” to scale back services at smaller facilities.

“Across our region this could have an impact on hospitals such as Bellingen, Macksville and Maclean as well as the multipurpose facility in Dorrigo.

“I am also concerned that hospitals such as Kempsey will be competing for services against Port Macquarie and that network managers will focus too much on Port at the expense of the Macleay.

“These proposed changes will not deliver control of public hospitals to local people. Only the Coalition’s plan for community controlled hospitals and the establishment of local hospital boards will put the budget, staffing and capital requirement decisions into the hands of the people who work in and use the hospital.”

Mr Hartsuyker said the Rudd approach was more of “political fix” than a genuine attempt to fix our dysfunctional hospital system.

“Despite promises to ‘fix public hospitals by mid-2009’, Mr Rudd’s new hospitals proposal isn’t going to start until 2012. If it’s such a good idea why don’t they begin the process now?

“The public has every reason to be cynical about this announcement. It is obviously designed to get Mr Rudd past the next Federal election. As a result, the sad reality is that North Coast residents are not going to see improvements in local hospital services anytime soon.

“The North Coast Area Health Service will continue to axe staff and medical professionals will be asked to do more with less.

“And with the NSW Government still required to come up with 40 per cent of hospital funding I am not convinced we have seen the end of the blame game.”