Program 1.5: Assistance to the States for healthcare services
The objective of program 1.5 is:
- the Government provides financial support for the States and Territories to be spent in the delivery of healthcare services. This program also has links to the Health and Ageing portfolio.
The program deliverable is:
- payments to the States and Territories are made according to the payment arrangements specified in the Intergovernmental Agreement.
Key performance indicators
The key performance indicators are:
- the Commonwealth Treasury will transfer to each State and Territory the amounts of their monthly and annual entitlements under the National Healthcare Specific Purpose Payment (SPP) and will make the payments on the dates specified in the Intergovernmental Agreement;
- the Commonwealth Treasury will provide advice to the States and Territories on the components of each payment prior to each payment being made; and
- the States and Territories are required to spend the National Healthcare SPP in the healthcare sector. Each State and Territory Treasurer will provide a report to demonstrate expenditure of the National Healthcare SPP within the healthcare sector in accordance with the Intergovernmental Agreement. The Commonwealth Treasury will review these reports provided by the States and Territories.
Analysis of performance
The Treasury facilitated the Government’s 2011-12 financial support for the States and Territories in the delivery of healthcare services.
- Payments under the National Healthcare SPP were $12.5 billion.
- All payments were accurately determined and made in a timely manner, in accordance with the payment arrangements specified in the Intergovernmental Agreement.
- Advice was provided to the States and Territories prior to each payment being made.
To demonstrate that the National Healthcare SPP has been spent in the relevant sector, each State and Territory will provide a report to the Standing Council on Federal Financial Relations (the Standing Council) within six months of 30 June 2012, disclosing relevant information in accordance with the Intergovernmental Agreement.
In August 2011, agreement was reached between the Commonwealth and the States on the National Health Reform Agreement which will deliver major reforms to the organisation, funding and delivery of health and aged care.
National health reform funding commenced from 1 July 2012 under the National Health Reform arrangements, replacing the National Healthcare SPP. The Intergovernmental Agreement has been amended to reflect the changed payment arrangements for healthcare.
National health reform funding will be paid into a national funding pool to support public hospital and public health services. National health reform funding will have two elements: National Health Reform base funding—to be provided from 1 July 2012 at an amount equivalent to the National Healthcare SPP—and efficient growth funding (to be provided from 2014-15).