THE Federal Government’s plan to change hospital funding could threaten services offered by the south-west’s smaller community health services, the Australian Medical Association has warned.
Under the Government’s National Health Reform plan, activity-based funding would replace the block-funding system used in small hospitals in communities like Coleraine, Penshurst, Timboon, Terang and Mortlake.
AMA Victoria president Harry Hemley said activity-based funding had been tried and failed in rural Victorian hospitals in the past but the current arrangements served small communities well.
“Casemix, or activity-based, funding was abandoned in Victoria’s rural and small regional hospitals because it wasn’t flexible enough to meet the extra costs of rural care,” he said.
“Local communities depend on small rural hospitals to offer quality services when they’re needed. Block-grant funding allows hospitals to offer services which are not truly efficient, such as obstetrics.”
Western District Health Service chief executive officer Jim Fletcher said he would be concerned if block-grant funding was reintroduced for small hospitals like Coleraine and Penshurst.
“It would be a step backward for small rural hospitals in Victoria,” he said.
“It’s correct Victoria did have activity-based funding for small regional hospitals and because that was not an appropriate form of funding we went to the introduction of block-funding.
“(Block-fundi ng) gives the flexibility and opportunity to provide a range of comprehensive services to the community to better meet the needs of the community.”
He said the proposed changes would not affect larger hospitals like Hamilton Base which already operates under activity-based funding.
“There’s not a lot of detail in (the National Health Reform plan) at this time. It needs more discussion,” Mr Fletcher said.
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