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COAG National Health Reform Heads of Agreement Attachment a (1)

COAG National Health Reform Heads of Agreement Attachment a (1)

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Published by Tim Tufuga
The proposed National health Reforms, costing $19.8 billion, proposing an incrementalised increase of 50% on current costings for the period in two stages, 45% within 2014-15, and 50% by 2017-18, for the National Health system of Australia.
The proposed National health Reforms, costing $19.8 billion, proposing an incrementalised increase of 50% on current costings for the period in two stages, 45% within 2014-15, and 50% by 2017-18, for the National Health system of Australia.

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Published by: Tim Tufuga on May 28, 2011
Copyright:Attribution Non-commercial

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05/28/2011

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AttachmentA
eadsf9cement-ationalHealthRefrr
Preliminaries
1.ThisAgreementsetsoutthesharedintentionoftheCommonwealth,StateandTerritorygovernments(theStates)toworkinpartnershiptoimprovehealthoutcomesforallAustraliansandensurethesustainabilityoftheAustralianhealthsystem.Thesereformswilldeliverbetterhealthandhospitalsby:a.helpingpatientsreceivemoreseamlesscareacrosssectorsofthehealthsystem;b.improvingthequalityofcarepatientsreceivethroughhigherperformancestandards,unprecedentedlevelsoftransparencyandimprovedengagementoflocalclinicians;andc.providingasecurefundingbaseforhealthandhospitalsintothefuture.
2.
NationalHealthReformwilldeliveranationallyunifiedandlocallycontrolledhealthsystemthatwillensurefuturegenerationsofAustraliansenjoyworldclass,universallyaccessiblehealthcarethrough:a.introducingnewfinancialarrangementsfortheCommonwealthandStatestoshareequallythecostsofgrowthinthepublichospitalsystem;b.confirmingtheStates'roleassystemmanagersforpublichospitalservicesincluding:-i.system-widepublichospitalserviceplanningandperformance,ii.purchasingofpublichospitalservices,iii.planning,fundinganddeliveringcapital,andiv.planning,funding(withtheCommonwealth)anddeliveringteaching,researchandtraining;c.confirmingtheStates'leadroleinpublichealth;d.acknowledgingtheCommonwealth'sleadroleindeliveringprimaryhealthcarereformtoenablepatientstoreceivethecaretheyneedwhenandwheretheyneedit-andindoingso,takingpressureoffpublichospitals;ande.affirmingtheMedicareprinciples,high-levelservicedeliveryprinciplesandobjectives,outcomes,outputsandmeasuresagreedbyCOAGin
2008.
Page1
 
KeyElements
Fundingpublichospitalservicesinpartnership
3.ThepartiesagreetocontinueCommonwealthbasefundingforhospitalservicessetatlevelsoutlinedbytheIntergovernmentalAgreementonFederalFinancialRelations(IGAFFR)andtheNationalHealthcareAgreement(basefunding).4.Inadditiontoitscontributiontobasefunding,theCommonwealthwillincreaseitscontributiontoefficientgrowthfundingforhospitalsto45percentfrom1July2014,increasingto.50percentfrom1July2017.a.TheCommonwealthguaranteesthatthiscontributionwillbenolessthan$16.4billionbetween2014-15and2019-20.b.Ifthiscontributionislessthan$16.4billion,theresidualfundsundertheguaranteewillbepaidintothenationalfundingbodyfordistributiontoStates:i.theseresidualfundswillbespentbytheStatesasfundingforanyhealthservicethatwillassistinamelioratingthegrowthindemandforhospitalservices,including:-1.chronicdiseasemanagementprograms,2.preventivehealthprograms,
3.
mentalhealthprograms,4.hospitaladmissionavoidanceprograms,and5.hospitalearlydischargeprograms;asjointlyagreedbytheCommonwealthandStates.Fundingwillbeadditionaltoandnotreplaceexistingspendingontheseprograms.c.TheCommonwealth'scontributiontoefficientgrowthisindependentofanyotherfundingarrangementsincludingNationalPartnershipAgreementsandthoserelatingtoprivatepatients.d.ThedetailofthemechanismtogiveeffecttothiscommitmentwillbedevelopedbyTreasurersforCOAGagreement,includingprovidingadvicetoCOAGonhowtoensurethatStateswhichimprovetheirlevelsofefficiencyagainstthenationalefficientpricewillberewardedbyretainingthesavingsassociatedwiththatimprovement.5.From1July2017,theCommonwealthwillcontributehalfofeverydollarrequiredbyStatestomeetincreasesintheefficientpriceofprovidingpublichospitalservicesandgrowthinserviceprovision.6.ThepartiesagreethattheCommonwealth'scontributiontopublichospitalserviceswillcomprisefundingrelatingto:a.publichospitalservicesforpublicpatients,withfundingprovidedonthebasisofactivity;b.blockfundingamountsforpublichospitalservicesbetterfundedinthatway,includingrelevantservicesinregionalandruralcommunities;Page2
 
c.teaching,trainingandresearchfunctionsfundedbyStatesundertakeninpublichospitals;andd.publichealthprograms.7.Efficientgrowthfundingiscomprisedof:a.theincreaseintheefficientpriceofdeliveringservicesandtheincreaseinserviceprovisionforpublicpatientservicesfundedonthebasisofactivity;andb.theincreaseintheefficientpriceofdeliveringpublichospitalservicesfundedbyblockgrants,andteaching,trainingandresearch.8.ThepartiesagreethatthismeansthatefficientgrowthinhospitalcostswillbefundedasanequalpartnershipbetweentheCommonwealthandStates.9.Thepartiesagreethatthisarrangementwillensurehospitalswillbeproperlyfundedintothefuturetomeettherisingcostsofcare.10.ThepartiesacknowledgethatthisarrangementwillmeantheCommonwealth'sshareofpublichospitalfundingwillincreaseovertimeandthattheperformanceofAustralia'spublichospitalswillimproveovertime.11.ThepartiesagreethatthisAgreementwillbeimplementedsothatnoStategovernmentwillbeworseoffinrespectofCommonwealthtransfersintheshorttermandallStateswillbebetteroffinthelongterm,relativetoexistingarrangementsintheHealthcareSpecificPurposePayment,the
$15.6
billionguaranteeintheNationalHealthandHospitalsNetworkAgreement,andthe$3.4billionNationalPartnershipAgreementonImprovingPublicHospitalServices,onanequivalentlevelofactivitybasis.12.ThepartiesagreethatTreasurerswilldevelopaprocesstoensureongoingmaintenanceofeffortandrealgrowthinpublichospitalservices,anditsinteractionwiththeoperationofthefundingguarantee(seeclause4).
Anationalfundingpool-improvingtransparencyoffundingflows
13.Thepartiesagreetocontributefundingforhospitalsintoasinglenationalpoolwhichwillbeadministeredbyanindependentnationalfundingbody,distinctfromCommonwealthandStateDepartments,tobeoperationalfrom1July2012:a.thisfundingwillincludebaseandgrowthfundingonanactivitybasis;andb.additionalstreamsoffundingwillbeadded,onceagreedbyCOAG,withtheaimofoptimisingtransparencyandefficiencyofallpublichospitalfundingflows.
14.
TherewillbecompletetransparencyandlineofsightofrespectivecontributionsintothepoolandfromthepoolthroughStateaccountstoLocalHospitalNetworks(LHNs),andofthebasisonwhichthecontributionsarecalculated.Page3

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