The recent NSW Budget Estimates hearing with the Minister for Health, the Hon. Ryan Park, highlights ongoing challenges in the mental health system, including staffing issues, funding allocation, and the need for improved workplace culture and support for vulnerable populations.
The annual NSW Budget Estimates inquiry is an important process for government accountability, where ministers and senior public servants answer questions about their portfolio’s spending, performance and effectiveness.
Last week, the Minister for Health, the Hon. Ryan Park, and other government officials took part in a hearing where concerns around the psychiatrist resignations and issues on mental health were discussed.
Psychiatrist Crisis and Resignations
- The NSW Premier, Chris Minns, acknowledged a crisis with psychiatrist resignations, describing the situation as “tolerable” but challenging.
- Minister Ryan Park confirmed the government is managing the situation with contingency plans, although it has put pressure on the mental health system.
- There were discussions about the cost and impact of using locums and VMOs (Visiting Medical Officers) to cover the gaps left by resigning psychiatrists.
- The Government has not paid any locums more than $3,050 a day, and there are 24 locums currently working in the mental health response.
- 72 psychiatrists have sought leave without pay to convert to VMO contracts.
Mental Health Funding and Services
- The Government spent around $37 million on commission fees for locum agencies in 2022-23, with an increase of about $20 million from the previous year.
- The exact figure for 2023-24 was not available and was taken on notice.
- There was a discussion about the allocation of mental health funding to Local Health Districts and whether it is quarantined for use within mental health or part of a general allocation.
Public Mental Health Patients in Private Hospitals
- Since January 2025, NSW Health has been accommodating public mental health patients in private hospitals due to the psychiatrist crisis.
- The cost and length of contracts for these accommodations were taken on notice.
- There was a question about whether public hospital nurses were provided to assist in the care of these patients in private hospitals, which was also taken on notice.
Workplace Culture and Mental Health
- There was a discussion about the review of workplace culture at Bankstown and other hospitals following incidents of inappropriate behavior by staff.
- NSW Health is working with Multicultural NSW and other stakeholders to ensure a safe and inclusive workplace environment.
Voluntary Assisted Dying (VAD) and Mental Health
- The annual report of the VAD board showed a median age of 75 at first assessment and identified five cases of duress during the reporting period.
- Training for doctors to detect elder abuse and the implementation of the National Dementia Action Plan were discussed.
The discussions shed light on the ongoing challenges within the mental health system, with a focus on critical staffing shortages and the growing pressure on resources. The financial strain and shifting of patients to private hospitals raise concerns about the long-term sustainability of the system.
The next hearing on mental health will take place Friday 14 March* with the Minister for Mental Health, the Hon. Rose Jackson. A live webcast will be available through NSW Parliament Webcasts.
*Note this hearing has been rescheduled from 7 March to 14 March.
