The Prime Minister has declared that the States of Australia will not be able to fund the public hospital and health needs of Australia’s aging population in to the future. The Rudd answer has been presented to us as his promised health reform in the shape of a 60/40 funding split; with the Commonwealth becoming the dominant funder, and local hospital networks providing management of service delivery.

There is actually no additional or new money; the 60% we all clearly know is to be achieved by a Federal grab of 30% of the States GST revenue. This is a takeover of State revenue.
It has been a skilful exercise in abrogating the responsibility that Federal government (of both parties) has over time failed to maintain its funding of the public hospitals and dropped to an average 35/65 contribution; thus making the States cop the brunt of the costs, and now blaming them for failures. “The blame game” has been played and rightly so. The States have pointed the finger at the federal government’s diminished contribution and now the Feds have stealth fully turned the table on the States.
The blame game will not disappear with this or any other proposal. If there is not enough funding there will be blame. What is favourable is buy in from both States and Federal Government with matched funding and full responsibility by both parties. A citizen of Victoria or NSW is also a citizen of Australia and both State and Federal governments have a responsibility that Mr Citizen has access to high quality health care that meets their clinical and human needs.
It is also a myth to believe that shifting all funding responsibility to the Commonwealth will end the blame game. This will result in the States, health networks, or whatever structure who is ground floor responsible for the delivery of care, blaming the Feds for insufficient funding.
The Rudd plan is superficial; full of rhetoric spilled out and delivered to Australian ears that have been desperate to hear some leadership and direction in health reform.
A clear acceptance of responsibility is a 50/50 split and adequate funding. The Feds must come back up to that mark and it must be maintained with both State and Federal Government increasing contributions in response to need. The 50/50 must be contracted, agreed and sustained with no wriggle room.
The concept of case mix funding has been around for a long time and can work, however the Rudd plan has the base price for episodes of care set by an “independent national umpire.” If this “base price” is the basis for calculating the value of the 60% Federal contribution then I fear we are short already.
The different geographic and demographic needs of this nation must be taken into account. Rural Australia and indigenous Australians have their specific requirements, best understood by those in the communities and States in which they reside. Even in capital cities there are some likes to be compared with likes, but some hospitals can hardly be bench marked with any other in this diverse country.
That is why the argument for local hospital boards and State accountability is still pushed by many. The remoteness of Canberra is not the real world of WA or far north Queensland.
So we have a Rudd Health reform solution that does not end the blame game, takes control of State income (claiming that it will fund 60% of capital hospital infrastructure for the States into the future which of course is from money stolen from the States that would contribute to the States ability to develop infrastructure themselves), remotely sets base prices for care delivery; and there is still no new money and no change till 2015.
There are more promises coming, but if they are built on this flawed model I hold little hope for their integrity in improving the outcomes for Australians needing to access our public hospital system. The opposition still seems to not have a clear heath direction, even more recently appearing to accept the rhetoric.
Another warning needs to be heeded. Be wary the diabetes plan announced recently with patient registration and payment to the GP practices rather than through the patient. This is a giant step towards the UK NHS system of fund holding which results in rationing of care for patients, discrimination against those most in need, and lowest common denominator health care.
Many from the UK, including doctors, will tell you that they escaped to Australia not just for the sunshine, but for the access to health care, and the Rudd government in busy adopting the very health care system that has let the UK down.
The shortage of aged care beds is a contributing factor to public hospital bed access block. We need something like 3800 more public hospital beds in Australia to take the pressure off the hospital staff, the waiting lists, the emergency departments etc. Bed availability is a solution.
So what must happen? Boost aged care funding appropriately. It may not be a sexy election issue but it will make a big difference across a lot of sectors and human lives.
Commit to a 50/50 split in State and Federal responsibility; both accountable equally. Blame is not the issue; it is adequate funding and service delivery.
Maintain local and State control so that the health needs of the people are responded to close to the coal face and increase local accountability and decrease bureaucracy with the introduction of local boards. With Rudd’s model we will create another layer of Federal administrators arbitrating over the States.
This time of “health reform” in Australia is like sitting on a precipice. We may make good choices that will sustain and improve access, quality and safety of health care; or we may choose for the sake of changes and looking good in an election year, a path with disastrous and sad consequences for the standards of care.
For the sake of looking chummy with the government even many reasoned health representatives are jumping on the Rudd reform band wagon. But the wagon is empty of detail, it has no traction in aged care funding, and it is intent on robbing States of money.
Where are the patients in all this? They need a bed, they need surgery, they need an aged care place, they need confidence in the system and they need equitable access that is clinically appropriate and respects them as human beings. The patients are hoping, but I fear that what we will give them in the future is less than what we have now.
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