Flying Doctor Service under threat

Submitted: Monday, Aug 17, 2009 at 15:03
ThreadID: 71574 Views:4195 Replies:9 FollowUps:11
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Check today's Australian. Under heading. "Rivals undercut RFDS"
The article begins
"THE future of the Royal Flying Doctor Service is under a cloud as private operators attempt to seize lucrative government contracts in three states, forcing the not-for-profit organisation to once again ask for commonwealth protection and greater financial support."

I have no idea about the accuracy of the reports, but The Australian must be reasonably credible. From previous results from privatizing services in the name of "efficiency" and "competition", I'd sat there were grounds for us to be concerned.
(Note: I originally posted this heads up as part of another thread but as it was drawing away from the intent of the original post, I thought it would be betytyer to give this heads up a thread of its own
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Reply By: Tenpounder (SA) - Monday, Aug 17, 2009 at 15:11

Monday, Aug 17, 2009 at 15:11
Don't worry, Mike: it's privatisation and competition, that has worked so well in the US Health scenario: only 46 million Americans can't get medical services, all the rest are OK!
So just wait: In five years time, over 90% of Australians will have access to the Son of RFDS, leaving only 2 million out of reach, in 80% of Australia's inland.
But it will be EFFICIENT!!
Am I cynical?

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Reply By: Sir Kev & Darkie - Monday, Aug 17, 2009 at 15:42

Monday, Aug 17, 2009 at 15:42
Here is the link to the article Rivals undercut RFDS

Cheers Kev
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Reply By: Member - John (Vic) - Monday, Aug 17, 2009 at 17:00

Monday, Aug 17, 2009 at 17:00
How many times does it happen??
Some new player comes in and just to get a foot in the door undercuts the incumbent who has provided a known level of service for a long time before.

The new player can't provide the services required as they bid so low to get it in the first place and the price bid won't support their operations so they ultimately withdraw or fall over completely.

We then find the original operator who had lost the business has cut staff and equipment because it lost the original contract and no longer has the business to support the ongoing costs.

The result is a shambles with the taxpayer left to foot the bill and in this case the remote areas of Australia possibly loosing the service it has always relied upon.



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Reply By: Member - Doug T (NT) - Monday, Aug 17, 2009 at 17:18

Monday, Aug 17, 2009 at 17:18
I wouldn't call the issue off topic , far from it, who comes to the aid of tourists in dire trouble in the bush....the RFDS of course.


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Follow Up By: Member - Kiwi Kia - Monday, Aug 17, 2009 at 17:23

Monday, Aug 17, 2009 at 17:23
A few more lines and put that to music Doug and you would could sell it to a bush poet for RFDS funds :-))
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Follow Up By: Member - Mfewster(SA) - Monday, Aug 17, 2009 at 17:43

Monday, Aug 17, 2009 at 17:43
Doug, I didn't mean that the subject was OT, I just felt it was a little rude to introduce a new aspect that moved a bit away from Gary's Op, which was really a response to a personal situation. The title of Gary's thread showed, his was a personal response and so I also thought putting the funding issue up under a different topic heading might alert more Eoers to the tendering issue.
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Follow Up By: Member - Doug T (NT) - Monday, Aug 17, 2009 at 21:47

Monday, Aug 17, 2009 at 21:47
Mfewster
Bob's ya Uncle...

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Follow Up By: Member - Doug T (NT) - Tuesday, Aug 18, 2009 at 08:04

Tuesday, Aug 18, 2009 at 08:04
Mfewster
Sorry mate... I was tired , I think this is what the brain registered .

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Reply By: Best Off Road - Monday, Aug 17, 2009 at 17:23

Monday, Aug 17, 2009 at 17:23
That report in the Australian is misleading. It tends to suggest that RFDS will not be doing patient retrieval.

The facts are that in Victoria, Ambulance Victoria has leased the aircraft from RFDS. RFDS has nothing to do with patient retrieval, that has always been carried out by Ambulance Victoria. This is purely a commercial arrangement. Another supplier has come along, tendered and won the contract.

It is a ten year contract, worth about $70M that RFDS won 10 years ago, they hadn't previously had it.

The Minister was interviewed by John Faine on ABC radio about two weeks ago. His stand was that it is his job to spend Victorian taxpayers money in the best interests of the state; not subsidise the RFDS in other states.

I personally thought it be a little mean spirited as it only amounted to a few million. On top of that Victorians do travel in remote areas outside of Victoria and a little support of the RFDS is warranted IMHO.

Jim.

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Follow Up By: Member - Mfewster(SA) - Monday, Aug 17, 2009 at 17:53

Monday, Aug 17, 2009 at 17:53
B.O.R., this is a classic MBA strategy. For about the last 20 years, business administration courses have taught that the bottom line is all that matters. Take over a business, break it up into components and get rid of the less profitable bits and whoopy do, our business genius has created a profit without having to actually produce anything at all. If your company only provides internet services to the big cities, you can do it at really low rates and corner the market. The bunnies that have to provide the same services in the bush have to charge much more. That is what they are doing with RFDS. Stripping off and flogging the more profitable bits that RFDS used to support its more financially difficult services.
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Reply By: aroundwego - Monday, Aug 17, 2009 at 18:04

Monday, Aug 17, 2009 at 18:04
Not forgetting that "Careflight" is also a not for profit organisation.

Its not something new - VIc, NSW and QLD are all existing operations that have been run by contractors for many years.

The tenders are for State Ambulance Patient transfers, not for RFDS operations.

In this case the commercial arm of RFDS were the suppliers providing the service. (BTW RFDS haven't always held the contract, there were previous companies.). There are also other companies running similar services all over Australia.
AnswerID: 379363

Follow Up By: bgreeni - Monday, Aug 17, 2009 at 18:22

Monday, Aug 17, 2009 at 18:22
In North Queensland there was a local Not for profit group running before RFDS took over. There coming in put that local group out of business.
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Reply By: timglobal - Monday, Aug 17, 2009 at 19:34

Monday, Aug 17, 2009 at 19:34
Making Careflight, RFDS and other rescue infrastucture "lowest bidder" is appalling.

It should be federally funded to an appropriate level.

State penny-pinching to the detriment of fellow Australians is legally questionable and morally abhorrent.

I'll get off my soapbox now.
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Follow Up By: Indigo Jones (QLD) - Monday, Aug 17, 2009 at 20:35

Monday, Aug 17, 2009 at 20:35
Yeah this is just wrong, we pay millions in GST, fuel excise and other hidden taxes and the Vic Govt takes the lowest bidder over an established Aussie icon !!! - Just goes to show that a cost can be placed on a human life - reprehenisble morons
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Reply By: BuggerBoggedAgain - Monday, Aug 17, 2009 at 21:59

Monday, Aug 17, 2009 at 21:59
Some 25 yrs ago the contract to protect our shores, patrol boats, helicopters,base radio stations covering our coastline was granted to some idiot, the idiot did NOT have any of these vessels and so the contract was taken off him, he then sued the Federal Govt. and won.

Unbelieveable that not one Govt. department took the time to see if this idiot had the necessary equipment to back his tender.
AnswerID: 379390

Follow Up By: aroundwego - Tuesday, Aug 18, 2009 at 07:08

Tuesday, Aug 18, 2009 at 07:08
Except all he did was win a contract for aircraft not the National Surveillance System as you state, but don't let the truth get in the way of a "sounds great unresearched story"

Have you even looked at the company/s that won the tender, Pel Air & Careflight are hardly $2 start up companies.

Why don't people research stuff before they start crying that the "sky is falling"

Next time a air ambulance helicopter flies over you, have a think about who owns it, who are flying it, who are maintaining it. It isnt the govt, its private or its a not for profit - is the world ending because of that - NO.

RFDS won a contract 10 years ago, when it came up again they didnt win it - that happens. And yep - another not or profit won it
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Follow Up By: aroundwego - Tuesday, Aug 18, 2009 at 07:35

Tuesday, Aug 18, 2009 at 07:35
I should also add though, they I to believe that the RFDS is a great organisation and have been there when they provided help, and I have collected donations for them. I too believe that they should be govt funded at a Federal level
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Follow Up By: Member - Mfewster(SA) - Tuesday, Aug 18, 2009 at 08:50

Tuesday, Aug 18, 2009 at 08:50
Fair comment Aroundwego. So I did some follow up. Pel Air is certainly not a "Not for Profit" organization. Careflight is a little different. I'd suggest from its associated groups that"not for profit" is an interesting term. I'd like to see a lot more details on how this group was run before I put it in the same caregory as the RFDS.
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Follow Up By: aroundwego - Tuesday, Aug 18, 2009 at 09:01

Tuesday, Aug 18, 2009 at 09:01
Mfewster
Yep, could have written that a bit better. Pelair is just the partner of the deal (and its a business. Careflight has a commercial arm that puts its profits back into the Careflight group. http://careflight.org/careflight_international/ RFDS has the same setup. They do contracts such as air ambulance retrievals to provide an income stream for their core RFDS functions

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Reply By: Peter_n_Margaret - Tuesday, Aug 18, 2009 at 08:58

Tuesday, Aug 18, 2009 at 08:58
I reckon there will be a massive backlash to this in the bush. They place real value on the RFDS.
The OKA has always attracted a lot of attention on the road and we joked about charging people for taking pics of it.
2 years ago we stopped joking and got a donation tin from the RFDS. In 2001 I had need to use the RFDS services. Now when people want to take pics we rattle the tin.
It NEVER fails to attract a donation, and many people are very generous.
In the case of th pic below, we stopped to check if people on the side of the road were OK. The story in the local Cape York paper was the result, PLUS about $30 in the tin!

A couple of weeks later we came across a bloke in a ute on a remote track with 2 flats and no way to fix either of them. We fixed both for him and $50 went into the RFDS tin.

This story is a tin that we need to "rattle" very loudly.

Cheers,
Peter
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