NSW's struggling health system will get $4.5 billion boost in this month's budget, with an extra 10,000 nurses, doctors and other health staff to be hired under a four-year plan.
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Premier Dominic Perrottet announced a major funding package on Monday at Liverpool Hopsital, saying it was the biggest boost in the health workforce in the state's history.
Midwives, paramedics, pathologists, pharmacists and allied health professionals will also make up 10,148 full-time recruits under the four-year plan.
Mr Perrottet said 7,674 more workers would be recruited in the first year, to help ease pressure on COVID-fatigued health staff and fast-track more elective surgery for patients.
"Everyone in NSW is indebted to our health workers for their selfless efforts throughout the pandemic, remembering for a long time there was no vaccine and they risked their lives each day to care for patients," Mr Perrottet said.
"This record investment will help us care for health staff across the state, providing the respite and back-up they need. It will also boost staff numbers in hospitals to deliver quality health care closer to home, ensuring better health outcomes and a brighter future for NSW families."
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Nurses, health workers and paramedics have walked off the job a number of times this year as part of rolling public-sector industrial action to demand better pay and conditions, including improved nurse-to-patient ratios.
During Monday's announcement, Mr Perrottet revealed that health workers would receive a $3000 "thank you" payment, as an appreciation of the efforts and sacrifices that they have made during the pandemic.
Treasurer Matt Kean said health workers across the state who were on staff as at July 1 would receive the money.
The Premier also announced that the government would lift its wage cap from 2.5 to to 3 per cent in the next financial year and up to 3.5 per cent in the following year.
The possible extra 0.5 per cent will be on offer in 2023-24 for employees that make a substantial contribution to productivity enhancing reforms, the government said.
This is below the 5.1 per cent the union movement has been campaigning for.
Mr Perottet said he knew that there would be "different views" about the government wages policy, but believed it was fair and balanced competing interests.
"We know that we are going into a challenging time with rising inflation and the reserve bank is meeting tomorrow," he said, alluding to another expected interest rate rise.
"It's going to be difficult for everyone in our state.
"We factored a lot of matters into coming to this final position. Our job as a responsible government is to make decisions that are best for everyone across our state."
Health Minister Brad Hazzard said the NSW Government's $4.5 billion investment over four years is intended to relieve pressure on existing staff and will ensure there are appropriate levels of health staffing for its pipeline of health infrastructure projects.
"Backing in our existing staff with additional staff to support them is critical," he said.
"As the NSW Government has delivered 170 hospitals and health facilities since 2011, with a further 110 underway, this funding will also ensure those new hospitals will have the workforce of today and the future."
The government is yet to reveal whether funding to start the construction of the new Shellharbour Hospital will be included in this year's budget.
Minister for Regional Health Bronnie Taylor said the staffing boost will also be extended to rural and regional NSW, where communities are waiting with open arms to welcome additional skilled health professionals.
The announcement comes after Mr Perrottet's $1.76 billion rescue package for the state's ambulance service, announced on Sunday, which will see an extra 2000 paramedics hired and 30 new stations set up.
A new ambulance services the Shellharbour area, located at Warilla, will be among the first to be built.