12 May 2009
The Australian Healthcare & Hospitals Association (AHHA) has welcomed the Federal
Government’s announcement of much-needed health infrastructure projects. However
the Association’s members are disappointed that the funding for hospitals and health
service facilities appears to fall short of the promised $5 billion from the 2008-09
Budget.
The AHHA is the peak national body representing public hospitals, area health services,
community health centres and public aged care providers.
"The AHHA is also disappointed that the Federal Government has made the decision to
remove the commitment of the additional $5 billion in expected funding to the Health
and Hospitals Infrastructure Fund. This is undermining the future of the health system
and threatens the Government’s goals for health reform," Ms Prue Power, Executive
Director, said.
"The community will share our concern that Australia's strained hospital and health
service infrastructure has not been given the much-needed attention that was promised
in the last Budget. The health needs of the population do not slow down even when the
economy does.
"The funding saved through the means testing of the inefficient Private Health Insurance
(PHI) Rebate Scheme should be used to make up the funding shortfall for the Health and
Hospitals Infrastructure Fund. As the Department of the Treasury stated previously in
advice to the Government, direct funding to hospitals is much more effective, rather
than via the PHI rebate. The AHHA does not accept that the funds should be lost from
the health system as a savings measure.
"The AHHA welcomes some Budget measures, such as the reform of the Medicare
safety-net to target benefits more directly to those in need and to reduce the
opportunities for private providers to manipulate the system. The AHHA also strongly
supports funding to hospitals for elective surgery and subacute care, two key issues
identified in the AHHA’s Service Integration policy released in 2008.
"We also support health workforce initiatives announced, specifically incentives to
increase the number of doctors in rural and remote areas, and the expansion of MBS and
PBS for some nurse practitioners and midwives. The announcement of infrastructure
funding for research and clinical training is also a welcome investment in the future.
"However, the effectiveness of these initiatives will be undermined if our hospitals and
health services do not have the infrastructure required to support high quality care.
Unless we want the next generation of Australians to inherit a health system that is not
physically equipped to meet the needs of the community and lags behind that of other
countries, the Government must increase funding for health infrastructure," Ms Power
said.
Contact: Prue Power, Executive Director, 0417 419 857
Mixed fortunes for
hospitals
NEWS 
