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BAD DEBT

26/08/2008 10:10:00 AM
Dubbo Base Hospital didn’t pay a $22,500 bill for five months, according to a Sydney-based software supplier Global Direction.

Greater Western Area Health Service (GWAHS) conceded it owes money to an unspecified number of businesses and apologised to them in a statement yesterday, but declined to say whether any of those businesses are in Dubbo.

Global Direction managing director Colin Richardson said the company - which supplies software for the pathology department - threatened to suspend services to the hospital in May after thousands of dollars worth of outstanding invoices were not paid.

Mr Richardson said his company still serviced the Dubbo Base Hospital but on a pre-pay basis.

“I understood that they ran out of money last December,” Mr Richardson said. “At some point we have to say enough is enough, at some point we have to ensure we get paid.”

Mr Richardson said his company who had supplied Dubbo Base Hospital with services for many years was paid but it was five months late.

“I knew we would get paid eventually,” Mr Richardson said. “I have no gripe with the hospital staff, we have been working with them for a long time.”

GWAHS declined to answer specific questions on the Dubbo Base Hospital’s level of debt, and how long it’s been unable to pay bills, if money is owed in Dubbo and whether any suppliers had suspended services to the hospital because of unpaid bills.

In a written statement from Finance and Corporate Services director John White, GWAHS “sincerely apologised to creditors who have not received payment within agreed terms”.

“GWAHS endeavours to pay all of its creditors within agreed terms,” Mr White said.

“However, GWAHS acknowledges that some creditors have not been paid within those terms, as agreed.

“GWAHS acknowledges the importance of local suppliers in providing services to their local health service,” he said.

Mr Richardson said he has written to Opposition leader Barry O’Farrell on the issue that was threatening the livelihood of many small businesses.

He says that the Government must pay bills on time.

belinda.galloway@ruralpress.com

“It’s not fair that the state government expects small businesses to fund the health system, large businesses have lots of leverage and all the right contacts, but small business is left to fend for themselves and secure payments,” Mr Richards said.

“If you are the local service station or butcher than they can go to the next one until they rack up a big debt” he said.

belinda.galloway@ruralpress.com

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A software supply company threatened to suspend services to the pathology department at Dubbo Base Hospital after not being paid for more than five months.
A software supply company threatened to suspend services to the pathology department at Dubbo Base Hospital after not being paid for more than five months.

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