More money for state health in Australia will depend on performance reports

Feb 26 2008

Federal Health Minister Nicola Roxon has plans for all states to publish performance reports about public hospitals and be accountable for how they spend extra commonwealth funding.

Nicola Roxon says patients will be able to use the data to review the performance of their local hospital and assess how it does against national standards.

The Health Minister is meeting state health ministers this week to hammer out a new five-year funding initiative which comes into place on July 1st.

Ms Roxon says the government will demand nationally consistent hospital performance reporting from both public and private sectors, and across all states.

The demand for such accountability across the health system is likely to be unpopular as state ministers have previously resisted the concept of public accountability and reporting because they fear it will lead to the creation of hospital league tables.

However improved accountability was a key issue in Kevin Rudd's election promise to improve health funding, which he says will put an end to "the blame game" between the different levels of government.

The Prime Minister has pledged to create a $2 billion incentive fund, accessible to states in return for improved outcomes.

But he has also threatened to hold a referendum seeking permission for a federal takeover of all public hospitals if an increase in public hospital standards is not seen by the middle of next year.

Ms Roxon says a nationally consistent performance system would be a crucial tool for identifying areas in need of reform and to assess whether states were improving the standards in public hospitals.

Roxon says better reporting will help pinpoint what is and isn't working, and what needs to be fixed and will also offer patients the chance to see exactly how the healthcare they are receiving compares nationally.

Ms Roxon's determined stance for a performance review system follows demands from state health ministers for a large increase in commonwealth funding.

Reba Meagher, the NSW Health Minister, along with other state ministers have complained that the Howard government reduced its share of public hospital fundings and they are demanding a return to a 50-50 settlement, meaning the commonwealth would have to lift its funding under the next five-year deal by a significant amount.

However Ms Roxon has declared there would be no more blank cheques for the states on health and the government will need to see that proposed reforms will benefit the community before any money is offered.

The head of a 10-person health commission panel of experts appointed this week to examine the broad reform of the health system said Australians should take more responsibility for their health.

Dr. Christine Bennett said that individuals' health behaviour and lifestyle choices accounted for at least half the money spent on the health system.