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Future of the Streaky Bay Medical Clinic Media Release

District Council of Streaky Bay to Purchase Streaky Bay Medical Clinic

The District Council of Streaky Bay has been working closely with the Streaky Bay Medical Clinic in discussing options of the future of the clinic after it was made aware of the impending resignation of Doctor Sobantu who has taken up a position in Naracoorte and the retirement of Doctor Oswald (the clinic owner).

Council has continued these discussions with its elected body, and Mayor Barber has been proactive in meeting with associated medical organisations in Adelaide to gain some insight and ideas for moving forward.

A Special Meeting of Council was held on January 4, 2018 to resolve Council’s position, and in the interest of the community Council agreed to purchase the Streaky Bay Medical Clinic as the District Council of Streaky Bay and proceed to form an Incorporated Association that is community driven and will own and manage the facility and activities on behalf of the Streaky Bay District.

Mayor Barber has said “Council out of necessity has come to this decision, due to the pending resignation and retirement of our current doctors. We are faced with the very real possibility that we will be a community without a doctor, and this arrangement will assist the community in its ability to retain this service. Council has obligations under Section 7 (b) of the Local Government Act, to provide services and facilities that benefit its area, its ratepayers and residents, and visitors to its area, including public services or facilities, health, welfare or community services or facilities, and cultural or recreational services or facilities”.

Joy Hentschke
Chief Executive Officer

Medical Clinic Council Aquistion Fact Sheet

Why did Council decide to do this?

Council of Streaky Bay has been working closely with the Streaky Bay Medical Clinic in discussing options of the future of the clinic after it was made aware of the impending resignation of Doctor Sobantu who has taken up a position in Naracoorte and the retirement of Doctor Oswald (the clinic owner).

Council has continued these discussions with its elected body, a Special Meeting of Council was held on January 4, 2018 to resolve Council’s position, and in the interest of the community Council agreed to purchase the Streaky Bay Medical Clinic as the District Council of Streaky Bay and proceed to form an Incorporated Association that is community driven and will own and manage the facility and activities on behalf of the Streaky Bay District.

Council has obligations under Section 7 (b) of the Local Government Act, “to provide services and facilities that benefit its area, its ratepayers and residents, and visitors to its area, including general public services or facilities,”…… “ health, welfare or community services or facilities, and cultural or recreational services or facilities”.

Why didn’t another party purchase the clinic?

3 Years ago, Dr Oswald secured the services of Dr Sobantu, with a view to Dr Oswalds future retirement, unfortunately this was not forthcoming. To source an alternative doctor in the short time frame that enable’s Dr Oswald’s retirement was not able to be met.

Will Council be disclosing how much the business cost?

The purchase price will be disclosed in accordance with the Local Government Act 91(9), $50,000 (official release Ordinary Council Meeting 25 January 2018).

What did Council Purchase?

Council purchased;

  • Accreditation of the Streaky Bay Medical Clinic for the next 3 years
  • Intellectual Property
  • Equipment, Hardware and Software
  • Patient Records
  • Business Name
  • Existing Services

When does Council take ownership of the Clinic?

Council will commence operating the clinic on Monday, February 5, 2018.

Will Council be undertaking Bulk Billing?

No – at this stage the clinic will continue to operate and charges will remain as is.

What will happen to the existing staff?

Council wish for as many of the existing staff to be retained, however that is a decision of individual staff. Council will be required to source staff if required. Staff (including Doctors if applicable) will in the immediate term be employed by Council.

How will Council manage the Clinic?

Council’s existing senior management team will be undertaking recruitment and handling the business aspect, Council is looking to secure the employment of an experienced practice manager to handle the day to day operations of the clinic.

What is happening with Doctors?

Council is currently trying to source doctors. Council will be working closely with the Rural Doctors Workforce Agency and others to secure Locums with a view to securing 1-2 doctors for longer terms.

Incorporated Association – what is this?

A not-for-profit group can incorporate to set up a legal identity separate to its members. Features of an incorporated association include:

  • lodged documents are kept on a public register
  • it can enter into contracts
  • affairs are usually run by a committee
  • the committee determines the rules of the association

What happens to any profit or loss?

The expenditure and income of the association is handled by the association, therefore any profit or loss is retained by the association.

The association can also dictate where the expenditure of any surplus funds are expended.

Why do Council want to set up an Incorporated Association?

Council would like the community to take ownership of the clinic and the future of this service in the community.

An incorporated association gives more flexibility for the offering of wages and other incentives to attract a doctor long term than what Council can offer.

What involvement will Council continue to have?

Council will assist with the establishment of the association.

The association committee will determine whether or not a representative of Council will be placed on the committee, as the committee establishes the positions on the committee.

A councillor or council staff member may elect to go on such committee in a personal capacity.

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District Council of Streaky Bay, 29 Alfred Terrace, Streaky Bay SA 5680
Telephone: 08 8626 1001 |Facsimile: 08 8626 1196
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