SA Pathology services review urges hundreds of job cuts by 2018
Hundreds of jobs could go if the recommendations of a review into SA Pathology are adopted.
SA Health commissioned an external assessment of the efficiency of pathology services in South Australia.
It found the cost of providing diagnostic services to be well above the Medicare rate.
The review recommended centralising pathology services and said more than 300 jobs might have to go.
A range of changes, if implemented, could achieve annual savings of $42.7 million.
The independent review said the state's pathology services were safe and of high quality.
SA Health CEO David Swan said he was pleased with that finding but costs were too high.
"Ernst and Young's report has identified that SA Pathology's cost of providing public diagnostic services is 126 per cent of the Medicare benefits schedule, which is considerably higher than the industry-accepted benchmark of 85 per cent or less," he said.
"We have a duty to use taxpayers' money as efficiently as possible to provide high-quality services."
Opposition health spokesperson Stephen Wade said the timing of the report was insensitive.
"They're choosing to put out detailed information the week before Christmas, causing distress to communities and families," he said.
"We certainly do need to have a conversation about how to make our health services both more affordable and higher quality, but the State Government's track record in consultation so far is appalling."
The SA Government is yet to consider its formal response to the recommendations but implementing them in full could see 332 full-time equivalent positions cut by the 2017-18 financial year.
Staff and unions will be consulted in the next month before a response is released.
