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Victoria deserves compensation on health reform
16 March 2010.
The Victorian public hospital system should receive $1.5 billion of infrastructure grants in compensation for state funding inequities under the Prime Minister’s proposed hospital reform plan, says AMA Victoria.
Under the Federal Government’s hospital reform transitional arrangement, the states will be paid 60 per cent of their existing hospital funding for two years until the new funding model is adopted.
AMA Victoria president Dr Harry Hemley said the most efficient states stood to lose from these transitional arrangements and poor performing states would be rewarded.
"Victoria’s hospitals are nine per cent more efficient than average, while hospitals in NSW are seven per cent less efficient than average," Dr Hemley said.
"That means that Victorian hospitals will receive $1.5 billion less than New South Wales for treating the same number of patients.
"The Commonwealth will be paying almost ten per cent more to NSW for exactly the same service. That just isn’t fair to Victorian taxpayers. Hospitals should be rewarded for the savings they’ve achieved.
"Since the introduction of casemix funding to Victoria in 1993, successive Victorian Governments have focused on improving hospital efficiencies but they have also let infrastructure decline – it’s only recently that we’ve started catching-up to get our hospitals back into shape."
AMA Victoria recommends the Commonwealth give Victoria an additional $1.5 billion over two years to address the Victorian public hospital system’s major capital needs.
"We suggest capital funding because we really need it, and this additional money would only be available for two years," Dr Hemley said.
"An extra $1.5 billion could pay for three or four new hospital redevelopments – for hospitals such as Bendigo, Box Hill, Western, Northern, and the Royal Eye and Ear Hospital – or a rebuild of one really big hospital like the Royal Children’s.
"Several hospitals have crumbing infrastructure and are in desperate need of extra beds and the doctors, nurses and equipment to support additional capacity."
Dr Hemley urged the Premier to ask for a much better deal from the Prime Minister before agreeing to the proposals.
"Premier Brumby must ensure that Victorian patients are not disadvantaged by the hard work that has already gone into health reform in this state.
"A capital injection would reward Victoria for running the most efficient hospital system, help restore our crumbing infrastructure, and provide equity to Victorian taxpayers."
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