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What impact from Federal health shake-up?

10 Mar, 2010 08:21 AM
Last week the Rudd Government announced it would deliver better health services and better hospitals by establishing a National Health and Hospitals Network. This new national network will be funded nationally and run locally.

"These reforms represent the biggest changes to Australia's health and hospital system since the introduction of Medicare, and one of the most significant reforms to the federation in its history" said Prime Minister Kevin Rudd.

One of the key changes is for hospitals to be run locally "through Local Hospital Networks bringing together small groups of hospitals, where local professionals with local knowledge are given the necessary powers to deliver hospital services to their community."

The Commonwealth will achieve these changes through taking 60 per cent of funding responsibility for public hospitals by investing one third of GST revenue - currently paid to the states and territories - directly in health and hospitals, and taking over responsibility for all GP and primary health care services.

The federal government will "pay Local Hospital Networks directly for each hospital service they deliver, rather than just handing over block funding grants to the states."

The States and Territories have until the COAG (Council of Australian Governments) meeting in Canberra on 11th April to decide whether they support the changes.

Mr Rudd said that "if the states and territories will not agree to these reforms, we will take this reform plan to the people at the next election - along with a referendum by or at that same election to give the Australian Government all the power it needs to reform the health system."

NSW Premier Kristina Keneally has asked for more detail on the scheme before responding fully. "We want to seize this once-in-a-lifetime opportunity to create the best health and hospital system for NSW" she said.

In NSW the formal consultation with health experts, stakeholders and community begins this week. In the meantime, NSW is continuing to seek more information and further clarification from the Federal Government on their plans.

The NSW Government Health Consultation Plan and Formal Response Agenda will include: A Discussion Paper on the possible implications on NSW funding; A Half-day working seminar on NSW's Response to Health Reform; and Public Submissions Process through an online forum for community members to make their own written submissions on both the Commonwealth's proposal and the State's discussion paper.

Member for Eden Monaro Dr Mike Kelly said: "People throughout Eden-Monaro consistently told me during the seven Public Consultations I held last year that it was time for the blame game to end and for us to get on with the job of improving the health system.

"The establishment of the National Health and Hospitals Network builds on record investments in health and hospitals made by the Rudd Government over the last two years."

"This includes a 50 per cent increase in hospital funding, increasing GP training places by 35% and training more nurses."

Dr Kelly told the Braidwood Times that there would be no rural hospital closures. Dr Kelly said that the Braidwood MPS was the 'model' that the government were trying to replicate elsewhere.

Dr Kelly was approached at the Braidwood Show by Mary Mathias, Chairperson of the Doug Smith BMPS Appeal, regarding Commonwealth Government financial support for the project to make our Hospital Dementia Friendly, she was told there was no funding available. Dr Kelly explained that the priority of the Government must now be to return the budget to a surplus as soon as possible. He suggested that if the Federal Government gains the support of the States, is re-elected and rolls out their national plan for Health Braidwood's aged care needs may be met. This process however would take several years.

The Doug Smith Appeal Committee wishes to reassure the community that it is not daunted by the lack of government funding. "We cannot delay a project that will ensure the comfort and safety of our elders who have given so much to the Braidwood area, on the chance that we may get government support." said Mary. "With strong backing from our Community Bank and the amazing generosity of the locals we will complete this project. In the first five months of the appeal we are well on our way to our first one hundred thousand dollars. Sincere thanks to our Central School Ag students who have already sold $3000 worth of tickets in the current raffle. Well done to our young people for working so hard to support our aged people" said Mary.

While Australian Prime Minister Kevin Rudd has stated that nothing in the plan would result in the closure of any hospital, Member for Monaro Steve Whan said he would still be looking at the entire plan and supporting evidence before forming his decision.

"In the face of rising demand the current funding arrangements are clearly not sustainable, but I just want to make sure these proposals are in the best interest of residents" said Mr Whan.

Mr Whan said he would closely examine the Commonwealth's proposals to ensure, in Cabinet discussions, that local hospitals and rural hospitals in general were not disadvantaged.

NSW Opposition Leader Barry O'Farrell, NSW Nationals Leader Andrew Stoner and Shadow Minister for Health Jillian Skinner said "the NSW Liberals & Nationals stand firmly against any more Labor cuts to rural and regional hospitals and other health services."

Mr Stoner called on latest Premier Kristina Keneally to spell out which country hospitals would be next to be closed or downgraded. "There are widespread concerns that more than 100 health facilities are at risk" Mr Stoner said.

"The NSW Liberals & Nationals overwhelmingly represent regional areas so we know what the problems are and understand the needs of the community.

The NSW Liberals & Nationals want to abolish Labor's huge, failed, area health service bureaucracies and replace them with smaller Health Districts with boards" said Mr Stoner.

Australian General Practice Network (AGPN) Chair Dr Emil Djakic said the health reform announcements provide the opportunity for better health for all Australians but only if the Commonwealth acts quickly to strengthen the primary health care sector.

"While AGPN welcomes the moves to improve our public hospital system, real change - prevention of unnecessary illness and reductions in Australia's high hospitalisation rates - will only occur through strengthened primary health care based around general practice," Dr Djakic said.

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