A health care workers compensation fund that has received almost $400m from the government over the past few years is in financial trouble, the ABC understands.
The fund, which has been running for years, has been struggling to pay its bills and has raised questions about the reliability of the state-run fund, including the fund’s ability to pay staff health care costs.
In a letter to the fund dated October 31, the NSW Premier, Gladys Berejiklian, said it was unable to continue to operate.
“It has been a financial challenge for the fund to survive, especially as there are no plans for funding,” Ms Berejaklian said.
She said the fund had been relying on donations to pay for staff health costs and was unable continue to provide services to the public.
Ms Berejklian also announced that the fund would be closing the office of its CEO and two staff, citing a financial emergency.
Her letter to staff on Tuesday, which was also seen by the ABC, said the financial pressures were not caused by staff, but by the fund, saying the funds inability to pay bills meant it was no longer able to pay the bills.
Its staff will receive a cheque from the state, which will pay for the health care services for which the fund is responsible.
‘It was just a matter of time’ The NSW Fund’s director, Sarah Knecht, said she was not sure why the fund was not able to keep running.
We were just a very small and small group of people and we were doing things that we thought we would get through, and it just happened, she said.
“It was all just a question of time before it was too late.”
We just want to make sure that it’s as good as it can be.
“She said it would be an extremely difficult time for the Fund, as it has been operating for about four years, and many staff had retired or were facing redundancy.
One of the Fund’s three directors, Laura Williams, told the ABC she was concerned about the Fund and the state of the fund in relation to staff and health care.
I would like to know why the money wasn’t coming through and why we weren’t able to do what we wanted to do, Ms Williams said.