The Prime Minister is proposing that states and the commonwealth contribute equally to a central funding pool from 1st July 2012 with the pool to be operated independently of governments.
The pool would disburse funding through states to Local Hospital Networks with states retaining all of their contributions as well as the matching commonwealth funding.
The body administering the pool would develop and oversee strict reporting requirements so the commonwealth and taxpayers could identify the relative efficiency of individual hospitals and states.
Waste will stand out very clearly and underperformance be able to be remedied. “With more transparency more accountability clear standards proper funding you identify what’s going wrong you get in and fix it.”
Medicare Locals will be responsible for preventative health measures.
Funding will be activity-based and on patient mix. A state will have to pick up the difference if its hospitals spend more than the ‘efficient’ price on treatments without good reason.
It will also have to supply a new National Performance Authority with the data it needs t oissue performance report cards for individual hospitals to guide patient choice.