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 Again, all not well with John James's finances 

Again, all not well with John James's finances

18/08/2008 4:50:00 PM
Calvary John James Hospital again faces financial troubles, less than two years after it was bought by the Little Company of Mary Health Care.

The hospital is believed to have made a significant loss last financial year.

The reports follow the hospital's decision to close its cancer clinic at the end of next month.

The hospital cited financial constraints for that decision.

It is now considering rationalising services, negotiating increased payments from health funds and seeking relief from its landlord, the John James Memorial Foundation.

The foundation sold the hospital, but not the grounds and building, to the Little Company of Mary in 2006 when it faced crippling debt.

Controversy followed the sale when the hospital closed its IVF clinic and withdrew abortion and sterilisation services, which were contrary to the new owner's religious beliefs.

At the time, the Little Company of Mary indicated the hospital's costs needed to be cut.The company's chief executive, Peter Hedge, refused at the weekend to discuss the hospital's financial position.

He said only that it was not in administration.

''We do not discuss our affairs with strangers over the phone,'' he said.

The hospital's chief executive, Paul Robertson, said only Mr Hedge could comment on finances.

Calvary Health Care ACT's communications manager Greg Bayliss forwarded requests by The Canberra Times for information to the Little Company of Mary's public relations agency, which did not respond.

John James Foundation board chairman Peter Yorke said he was unaware of any negotiations to vary the rent.

He said there were a variety of reasons for the hospital's financial difficulties two years ago.

''Those very same reasons were responsible for many private hospitals closing,'' Dr Yorke said.

Some of the difficulties related to changes in health funds and the need to negotiate with them individually. ''Being a stand-alone hospital, we had substantial difficulties,'' he said.

The Little Company of Mary had taken over a hospital in financial difficulty, he said.

Dr Yorke said he did not believe the decision to close the day oncology unit was related to any general financial pressure.

The unit had not had enough patients, he said.

The hospital had run very well for 30 years and he was confident it had a future.

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1/12/2008 | A government budget going into deficit as an economy heads towards a recession should evoke no more than a yawn.
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