BUDGET CRISIS: AMA (NSW) and doctors are calling on the NSW Government to urgently increase public hospital budgets as demand soars and cost cutting puts patients at risk. In a survey conducted by AMA (NSW), Medical Staff Council chairs from 12 local health districts and two speciality networks, also called for urgent award reform, a greater focus on recruitment and more doctor involvement in decision making. Doctors reported their local health districts were between $6 million and $100 million over budget, resulting in recruitment freezes, no funding for new services and the closure of beds. Others said taking leave entitlements to attend specialist education and training was being made so difficult they were missing vital opportunities to upskill and stay current in their practice, while some said their hospitals were unable to perform adequate volumes of elective surgeries due to a lack of staff. Many hospitals had grown significantly with new infrastructure under the previous government, but doctors report the workforce has not grown to meet increased bed numbers and activity levels. "Our Medical Staff Councils from across NSW are making it very clear they are in crisis,” says AMA (NSW) president Dr Kathryn Austin, pictured. "Their budgets are insufficient to meet demand, and when doctors are in crisis, patients suffer. This is untenable and we call on the NSW Government to provide an urgent top up to the budgets of local health districts so our doctors, nurses and allied health staff can meet the needs of our patients.”
Agree entirely with this sentiment. The Service Level Agreements between the LHDs and Susan Pearce AM are fiscally insufficient for the LHD performance against the KPIs for service delivery to the community. The Activity Based Funding model despite addendums to the National Health Reform Agreement and alignment of in-scope activities with IHACPAs calculation of the National Efficient Price, are consistently 3 years in arrears. Factor this into the Socisl Determinates of Health 1. Preventative Health 2. Hospital avoidance and Hospital in the home 3. Allocative Efficiency for funding rather than technical efficiency, we have therefore a budget that is outdated and smaller as LHDs move into filling gaps in primary care (Commonwealth funded). Also the NHRA only contributes to Recurrent funding (operating costs) NOT Capital funding. Ministry negotiation with Treasury Baseline - historical, ABF Headline Growth- 4.9-5.2% calculated by Treasury. Intergenerational report (4 yrs). 6.3% in health. Battle between growth and activity and therefore Treasury adjustments. Ministry uses New Policy Proposals (NPP) to mitigate this. The NPP has to align with Treasury strategies in other sectors such as cost of living and essential services.
Matter of deep concern.
Neurosurgeon and Minimally Invasive Spine Surgeon, Sydney, Australia
3moDiscussion of NPP aligned to Govt priorities, goes to Health Minister, takes to TREASURER, feedback from treasury (need to adjust assumptions of alignment). 2 lines of discussion going on: 1. Minister and treasurer/treasury 2. Health and treasury Concurrent conversations regarding modelling of NPP. Finally, Agreement by treasury. Then stage 2 commences. Need more modelling, evidence expected objectives etc Modelling takes into consideration: Costings, outcomes, outputs on revenue and merit. Goes to ERC Health outcomes will have impact on costing going forward. Will get built in. Eg community based delivery of care falling between the buckets of ABF and Medicare funded primary care, need NPP to cover that gap between buckets. Create a package to accommodate.Such as hospital avoidance programmes from ED. Ad hoc arrangements for Commonwealth to fund some of these changes. But this is grey area. Does this NPP model cover this? Answer is no. The bottom line is this: TREASURY HAS NOT MANDATED CUTS TO HEALTHCARE. Therefore the MOH must ask more money from Treasury to cover the shortfalls in the current NHRA funding model. The clinicians and executives of the LHDs must work with MOH to lobby Treasury.