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Health reform threatens rural hospitals
12 March 2010.
The Federal Government’s plan to abandon block-grant funding and introduce activity-based funding for Victoria’s rural hospitals would threaten their viability, according to AMA Victoria.
AMA Victoria President Dr Harry Hemley said activity based funding had failed in rural Victorian hospitals in the past but the current arrangements served rural communities well.
"Our rural and small regional hospitals could certainly use extra funds to improve their infrastructure and increase resources for patient care, but changing their funding arrangements is not the answer," he said.
"Casemix, or activity-based, funding was abandoned in Victoria’s rural and small regional hospitals because it wasn’t flexible enough to meet the extra costs of rural care.
"Local communities depend on small rural hospitals to offer quality services when they’re needed. Block-grant funding allows hospitals to offer services which are not truly efficient, such as obstetrics."
Under the Federal Government’s reform plan, a price would be set for each hospital service and the Commonwealth would pay 60 per cent of the efficient costs of care. The states would fund the remaining 40 per cent, plus any extra costs.
Dr Hemley said Victoria’s hospital funding structure worked but more funds were needed to make significant improvements to the health system.
"The Federal Government’s health reform must include substantial funding increases to allow Victoria’s doctors and nurses to care for our growing and ageing population – now and in the future."
Background
Victoria’s rural and small regional Victorian hospitals funded through block grants:
- Casterton Memorial Hospital
- Hesse Rural Health Services
- Heywood Rural Health
- Lorne Community Hospital
- Moyne Health Services
- Otway Health and Community Services
- Terang and Mortlake Health Service
- Timboon and District Healthcare Service
- Western District Health Service
- Kooweerup Regional Health Service
- Omeo District Health
- Orbost Regional Health
- South Gippsland Hospital
- Yarram and District Health Service
- Beaufort and Skipton Health Service
- Dunmunkle Health Services
- East Wimmera Health Service
- Edenhope and District Memorial Hospital
- Hepburn Health Service
- Rural Northwest Health
- West Wimmera Health Service
- Alexandra District Hospital
- Alpine Health
- Beechworth Health Service
- Cobram District Hospital
- Kilmore and District Hospital
- Mansfield District Hospital
- Nathalia District Hospital
- Numurkah and District Health Service
- Seymour District Memorial Hospital
- Tallangatta Health Service
- Upper Murray Health and Community Services
- Yarrawonga District Health Service
- Yea and District Memorial Hospital
- Boort District Health
- Cohuna District Hospital
- Inglewood and Districts Health Service
- Kerang District Health
- Kyneton District Health Service
- Maldon Hospital
- Mallee Track Health and Community Service
- McIvor Health and Community Services
- Robinvale District Health Services
- Rochester and Elmore District Health Service
(Total of 44 hospitals)
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