Health gets $447m top up
The record Health spend of $8 billion for 2014-15 includes yet another top up for information technology at Fiona Stanley Hospital and warnings that service delivery costs must fall to meet national benchmark standards.
Total health spending will rise $447 million or 5.9 per cent to meet increasing demand amid projections of an extra 15,000 inpatients next year to a total of 607,000.
The Budget outlines not only the number of extra patients but the cost of treating them as major headwinds confronting the State.
The 2011 National Health Reform Agreement initiated under the former Labor Federal government will provide part funding for hospitals up to a national standard, with State bearing the rest.
Currently WA pays about 8 per cent more than the national benchmark to provide services under the so-called activity-based funding model, and the Budget aims to eliminate that differential by 2017-18.
“Should these efficiency improvements not be fully realised, there is a risk that public hospital cost growth in WA could outpace national price settings, requiring additional funding or adjustments to planned activity levels,” the Budget warns.
Mike Nahan described the required reforms today as challenging.
The situation has not been helped by yet another top-up to the troubled FSH project, $41 million on top of the $140 million contained in December’s mid year review.
When pushed, Dr Nahan said he expected it to be the last.
There has been no provision for extra demand for services at hospital emergency departments resulting from Federal Government’s planned GP co-payment.
Despite the effect being widely suggested, State Treasury has found no evidence from other jurisdictions worldwide that GP co-payments increase ED demand.
