the national health reform agreement - national partnership agreement on improving public ...

56 Pages·2011·0.88 MB·English

THE NATIONAL HEALTH
REFORM AGREEMENT -
NATIONAL PARTNERSHIP
AGREEMENT ON
IMPROVING PUBLIC
HOSPITAL SERVICES

Council of
Australian
Governments

An agreement between
the Commonwealth of Australia and

the States and Territories, being:


The State of New South Wales;

The State of Victoria;

The State of Queensland;

The State of Western Australia;

The State of South Australia;

The State of Tasmania;

The Australian Capital Territory;and

The Northern Territory of Australia


This Agreement implements the public patient access to elective surgery, emergency department and
subacute care services elements of the National Health Reform Agreement – the most significant
reforms to Australia’s health and hospital system since the introduction of Medicare, and one of the
biggest reforms to the federation in its history to improve efficiency and capacity in public hospitals.
National Health Reform Agreement - National Partnership Agreement on Improving Public Hospital Services

National Health Reform
Agreement - National
Partnership
Agreement on
Improving Public Hospital
Services
INTERGOVERNMENTAL AGREEMENT
ON FEDERAL FINANCIAL RELATIONS
PRELIMINARIES
1 This National Partnership Agreement (the Agreement) is created subject to the
provisions of the Intergovernmental Agreement on Federal Financial Relations
and should be read in conjunction with that Agreement and subsidiary Schedules.
In particular, the Schedules include direction in respect of performance reporting
and payment arrangements.
2 This Agreement will contribute to improved public patient access to elective
surgery, emergency department (ED) and subacute care services by improving
efficiency and capacity in public hospitals.
3 This Agreement will be implemented consistently with the objectives and
outcomes of all National Agreements and National Partnerships agreed by the
Parties. In particular, the Parties are committed to addressing the issue of social
inclusion, including responding to Indigenous disadvantage (for example, the
reform commitments provided in the National Indigenous Reform Agreement)
and those commitments are embodied in the objectives and outcomes of this
Agreement.
4 This Agreement supports the National Health Reform Agreement and the
previous work under the National Health and Hospitals Network and the National
Health Reform – National Partnership Agreement, signed on 13 February 2011,
and should be read in conjunction with that Agreement and any subsequent
Schedules or agreements.
5 COAG commissioned an Expert Panel (the Panel) under the National Health
Reform - National Partnership Agreement, to review the implementation of the
National Elective Surgery Target (NEST) and National Emergency Access Target
(NEAT); and to provide a suite of recommendations that were agreed by COAG
which are incorporated into this Agreement.
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National Health Reform Agreement - National Partnership Agreement on Improving Public Hospital Services

6 The following six initiatives aim to increase the efficiency and capacity in public
hospitals:
(a) up to $650 million to meet the NEST;
(b) up to $150 million in elective surgery capital;
(c) up to $500 million to achieve a four hour NEAT in public hospital EDs;
(d) up to $250 million in emergency department capital;
(e) up to $1.6 billion for new subacute beds; and
(f) up to $200 million flexible funding pool for capital and recurrent projects
across elective surgery, EDs and subacute care.
However, subject to Clause 32, States and Territories are able to redirect funding
within this Agreement.
7 For this Agreement to have the desired impact on public hospital services, it is
essential that State and Territory expenditure in each of the targeted areas
(elective surgery, emergency department and subacute care) is maintained and
States and Territories do not withdraw or redirect funding. Investments under this
Agreement are additional to such effort.
8 This Agreement supports and is complementary to existing Agreements on
elective surgery, emergency departments and subacute care, including the
National Partnership Agreement on the Elective Surgery Waiting List Reduction
Plan and the National Partnership Agreement on Hospitals and Health Workforce
Reform. Where Agreement reporting requirements overlap, reporting dates will
be adjusted accordingly so that States and Territories are only required to report
once in a quarter against elective surgery, ED and subacute care performance.
PART 1 — FORMALITIES
Parties to this Agreement
9 In entering this Agreement, the Commonwealth and the States and Territories
recognise that they have a mutual interest in improving outcomes in the delivery
of public hospital services and need to work together in alliance with Local
Hospital Networks to achieve those outcomes.
Term of the Agreement
10 This Agreement will commence as soon as the Commonwealth and one other
Party signs the Agreement and will expire on 30 June 2017, unless terminated
earlier or extended as agreed in writing by the Parties. To be a Party to this
Agreement, Parties must have signed the National Health Reform Agreement.
Enforceability of the Agreement
11 The Parties do not intend any of the provisions of this Agreement to be legally
enforceable. However, that does not lessen the Parties’ commitment to this
Agreement.
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National Health Reform Agreement - National Partnership Agreement on Improving Public Hospital Services

Delegations
12 The relevant Commonwealth Minister with portfolio responsibility for Health is
authorised to agree to or amend Schedules, including the Implementation Plans
to this Agreement and to certify that payments may be made as described in the
Schedules of this Agreement.
13 First Ministers may provide respective State and Territory Ministers with portfolio
responsibility for Health, with authority to agree to or amend Schedules,
including the Implementation Plan, to this Agreement.
PART 2 — OBJECTIVES, OUTCOMES AND OUTPUTS
Objectives
14 The objective of this agreement is to drive major improvements in public hospital
service delivery and better health outcomes for Australians.
Outcomes
15 This Agreement will facilitate improved access to public hospital services,
including elective surgery and ED services, and subacute care.
Outputs
16 The objectives and outcomes of this Agreement will be achieved by:
(a) a higher proportion of elective surgery patients seen within clinically
recommended times, and a reduction in the number of patients waiting
beyond the clinically recommended time (as set out in Schedule A);
(b) a higher proportion of ED patients to either physically leave the ED for
admission to hospital, be referred to another hospital for treatment, or be
discharged within four hours as per Schedule C;
(c) more subacute care beds available for patients (as set out in Schedule E);
and
(d) projects completed to support increased access to elective surgery, reduced
emergency department waiting times and more subacute care (as set out in
Schedules B, D and F).
PART 3 — ROLES AND RESPONSIBILITIES OF EACH
PARTY
17 To realise the objectives and commitments in this Agreement, each Party has
specific roles and responsibilities, as outlined below and in any Schedules to this
Agreement.
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National Health Reform Agreement - National Partnership Agreement on Improving Public Hospital Services

Role of the Commonwealth
18 The Commonwealth agrees to be accountable for the following roles and
responsibilities:
(a) providing a financial contribution to the States and Territories to support
the delivery of initiatives under this Agreement;
(b) monitoring and assessing the performance in the delivery of initiatives
under this Agreement, except in relation to reward payments;
(c) participating in consultations as appropriate regarding implementation of
this Agreement;
(d) approving Implementation Plans provided by States and Territories under
this Agreement;
(e) negotiating new or revised Schedules, including the Implementation Plan,
to this Agreement; and
(f) supporting and, where appropriate, participating in evaluations and reviews
of services and outputs delivered under this Agreement.
Role of the States and Territories
19 The States and Territories agree to be accountable for the following roles and
responsibilities:
(a) delivering initiatives in accordance with this Agreement, in close alliance
with Local Hospital Networks;
(b) ensuring that the funding provided under this Agreement is used in a way
that demonstrates value for money;
(c) reporting on the progress of initiatives as set out in Part 4 – Performance
Benchmarks and Reporting and in accordance with Schedules to this
Agreement;
(d) participating in consultations as appropriate regarding the implementation
of this Agreement;
(e) having achieved performance targets set out in this Agreement, continuing
to maintain or improve upon those targets, unless otherwise agreed;
(f) negotiating new or revised Schedules, including Implementation Plans, to
this Agreement;
(g) conducting evaluations and reviews of services and outputs delivered under
this Agreement;
(h) actively engaging with relevant sectors and clinicians involved in the
delivery of services covered in this Agreement in the development of the
Implementation Plan (including Local Hospital Networks and Medicare
Locals) and facilitating the update of evidence-based guidelines and
pathways to promote service delivery;
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National Health Reform Agreement - National Partnership Agreement on Improving Public Hospital Services

(i) ensuring that prior agreement is reached with the Commonwealth on the
nature and content of any events, announcements, promotional material or
publicity relating to activities under this Agreement, and that the roles of
both Parties will be acknowledged and recognised appropriately; and
(j) responding to reasonable requests from the Commonwealth for
information, or further documentation, on the progress of the initiatives.
PART 4 — PERFORMANCE BENCHMARKS AND REPORTING
Performance Indicators
20 Assessment of achievement of the objectives and outcomes in this Agreement
will be informed with reference to the performance indicators set out in the
Schedules to this Agreement.
Performance Benchmarks
21 States and Territories agree to meet the performance benchmarks set out in the
Schedules to this Agreement.
Performance Reporting
22 States and Territories note that in accordance with the National Health Reform
Agreement, the role of the COAG Reform Council will be continued, with the
following functions:
(a) providing clear and transparent regular public reporting on all jurisdictions’
performance against:
i. the performance indicators set out in the National Healthcare
Agreement (NHA);
ii. the new National Standards; and
iii. the new national clinical quality and safety standards, as
developed by the Australian Commission on Safety and Quality in
Health Care;
(b) providing an independent assessment of whether predetermined
performance benchmarks have been achieved prior to reward payments
being made; and
(c) advising COAG on changes that might be made to improve performance
reporting against the NHA performance indicators.
23 States and Territories note that the National Health Performance Authority will
monitor and report on the performance of Local Hospital Networks and individual
hospitals.
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National Health Reform Agreement - National Partnership Agreement on Improving Public Hospital Services

Reporting Arrangements
24 States and Territories will provide Implementation Plans for this Agreement in
accordance with Schedules to this Agreement. Implementation Plans may be
reviewed annually to take account of progress and changing parameters and if
required, updated and agreed in accordance with Clauses 12 and 13 of this
Agreement.
25 States and Territories will provide Progress Reports and performance data in
accordance with Schedules to this Agreement.
26 States and Territories will prepare Final Reports in accordance with Schedules to
this Agreement. Final Reports may be publicly released.
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National Health Reform Agreement - National Partnership Agreement on Improving Public Hospital Services

PART 5 — FINANCIAL ARRANGEMENTS

Financial Contributions
27 The maximum amount of funding available from the Commonwealth to the
States and Territories under this Agreement is $3.4 billion, assuming a national
roll-out of the initiatives. Annual funding allocations against each reform initiative
are shown in Table 1:
Table 1: Funding allocations for each initiative1, 2
Reform Funding Type 09-10 10-11 11-12 12-13 13-14 14-15 15-16 16-17 Total
initiative ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m)
Investment in - 355 .0 95.0 - - - - - 450.0
National Facilitation
Elective (2010-11 to
Surgery 2011-12)
Target

Reward - - - 47.5 50.0 50.0 50.0 2.5 200.0
(2012-13 to
2016-17)
Investment in Project 33.4 91.6 25.0 - - - - - 150.0
elective
surgery
capital
Investment in Facilitation - 175.0 75.0 50.0 - - - - 300.0
National (2010-11 to
Emergency 2012-13)
Access
Reward - - - 50.0 50.0 50.0 50.0 - 200.0
Target
(2012-13 to
2015-16)
Investment in Project 44.6 105.4 50.0 50.0 - - - - 250.0
emergency
department
capital
Investment in Project 0.0 233.6 317.6 446.5 625.5 - - - 1,623.2
new
subacute
beds
Flexible Project 55.8 94.2 25.0 25.0 0.0 - - - 200.0
funding pool
TOTAL FUNDING 133.8 1,054.8 587.6 669.0 725.5 100.0 100.0 2.5 3,373.2

1 Estimated funding allocations are contingent on performance, and assume a national roll-out.
2 Rows and columns may not add due to rounding. Actual payments will be calculated to the nearest dollar.

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National Health Reform Agreement - National Partnership Agreement on Improving Public Hospital Services

Table 2: Funding allocations for each Jurisdiction1, 2
09-10 10-11 11-12 12-13 13-14 14-15 15-16 16-17
State Total
($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m)
NSW
42.2 324.7 186.2 214.2 235.5 31.7 31.7 - 1,065.8
VIC
33.4 251.2 143.3 165.2 179.4 24.7 24.7 - 821.9
QLD
28.3 205.9 117.3 135.4 146.9 21.0 21.0 - 675.7
WA
- 124.8 60.2 69.9 75.0 10.7 10.7 - 351.6
SA
12.4 79.0 45.2 49.4 52.9 6.9 6.9 - 252.9
TAS
6.5 29.8 15.2 15.8 16.2 2.2 2.2 1.1 89.2
ACT
5.8 22.7 11.9 11.2 11.5 1.6 1.6 0.8 67.0
NT 5.0 16.5 8.3 7.6 8.1 1.2 1.2 0.6 48.7
TOTAL
FUNDING 133.8 1,054.8 587.6 669.0 725.5 100.0 100.0 2.5 3,373.2

1 Rows and columns may not add due to rounding. Actual payments will be calculated to the nearest dollar.
2 Some funding has already been provided to States and Territories under the previous Agreements.

28 The Parties also agree that the outcome of considerations of Treasurers related to
the appropriate treatment of Commonwealth and State National Partnership
expenditure as outlined in the Intergovernmental Agreement on Federal Financial
Relations, including Clauses A 4(b)(vii) and E23, will apply to this Agreement.
29 The Commonwealth’s funding contribution will not be reduced where the States
and Territories secure funding from other activity partners through innovative
and collaborative partnerships.
30 The distribution of total funding to States and Territories and the timing of
payments is set out in the Schedules to this Agreement.
31 National Partnership payments to the States and Territories will be paid in
accordance with Schedule D — Payment Arrangements of the Intergovernmental
Agreement on Federal Financial Relations.
Flexible Funding Arrangements
32 States and Territories have the flexibility to redirect funds allocated across the
elective surgery, ED and subacute Schedules to the highest priority within their
jurisdiction. Redirecting funds can only be done with prior written agreement
from the Commonwealth. A State or Territory will also need to clearly
demonstrate how they will meet their agreed performance targets provided in all
Schedules using the revised allocation of funding. Following agreement from the
Commonwealth, a State or Territory will need to provide Implementation Plans
that reflect the revised funding allocation.
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National Health Reform Agreement - National Partnership Agreement on Improving Public Hospital Services

Project Management Risk
33 Having regard to the agreed estimated costs of projects specified in an
Implementation Plan, a State or Territory will not be required to pay a refund to
the Commonwealth if the actual cost of the project is less than the agreed
estimated cost of the project. Similarly, the States and Territories bear all risk
should the costs of a project exceed the agreed estimated costs. The Parties
acknowledge that this arrangement provides the maximum incentive for the

States and Territories to deliver project cost effectively and efficiently.
PART 6 — GOVERNANCE ARRANGEMENTS
Dispute Resolution
34 Any Party may give notice to other Parties of a dispute under this Agreement.
35 The relevant Ministers will attempt to resolve any dispute in the first instance.
36 If a dispute is unable to be resolved by the relevant Ministers, it may be referred
by a Party to COAG for consideration.
Implementation of the Recommendations of the Expert Panel
37 The parties agree to all the recommendations of the Panel, which have been
incorporated into this agreement.
38 The Panel, which was established following the 13 February 2011 COAG meeting,
shall continue existence, as announced on 10 May 2011.
(a) The Panel consists of a Chair and includes expert clinicians and health
administrators.
(b) The Panel issued its first report to COAG on 30 June 2011. Based on the
report the Agreement has been revised to include those
recommendations. Recommendations relating to Elective Surgery and ED
are included in Schedules A and C of this Agreement.
(c) The Panel will be available for the term of this Agreement. Its work will be
determined by COAG, on advice from the Standing Council on Health. All
reports issued by the Panel will be made available to the public.
(d) In responding to any COAG requests, the Panel will link with jurisdictions,
key clinicians, hospital executives, consumers and other key stakeholders
as appropriate.
(e) This may include reviewing the practical implementation, timing, phasing
and safety and quality issues related to elective surgery and emergency
targets that may arise during the life of the Agreement.
39 Parties agree that States and Territories are to develop and implement strategies
to promote clinical engagement, best practice and shared learning within and
between jurisdictions, and that this matter is to be progressed through the
Standing Council on Health.
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