Home > Mid-Year Economic and Fiscal Outlook > Appendix A: Policy decisions taken since the 2013-14 Budget > Expense Measures - Health

Appendix A: Policy decisions taken since the 2013‑14 Budget (Continued)

Expense Measures (Continued)

Health

Albury‑Wodonga cardiac catheterisation laboratory

Expense ($m)
	2012‑13	2013‑14	2014‑15	2015‑16	2016‑17
Department of the Treasury	‑	5.0	‑	‑	‑
Department of Health	‑	‑	‑	‑	‑
Total — Expense	‑	5.0	‑	‑	‑

The Government will provide $5.0 million towards the construction of a new cardiac catheterisation laboratory at Albury‑Wodonga Hospital to enable local residents suffering from heart conditions to access quality care, without the need to travel long distances to capital cities.

The cardiac catheterisation laboratory will be built on the Albury Hospital site by refurbishing existing space adjoining the current imaging department.

This measure delivers on the Government's election commitment.

Ballina Hospital — upgrades

Expense ($m)
	2012‑13	2013‑14	2014‑15	2015‑16	2016‑17
Department of the Treasury	‑	4.5	‑	‑	‑
Department of Health	‑	‑	‑	‑	‑
Total — Expense	‑	4.5	‑	‑	‑

The Government will provide $4.5 million to Ballina Hospital, New South Wales, to build a second operating theatre and upgrade the medical imaging department. This will improve the delivery of services in the hospital and enable an increase in the operating theatre capacity. The upgrade will improve the flow of patients between the emergency department and the medical imaging department.

This measure delivers on the Government's election commitment.

Bear Cottage — children's palliative care

Expense ($m)
	2012‑13	2013‑14	2014‑15	2015‑16	2016‑17
Department of Health	‑	2.0	‑	‑	‑

The Government will provide $2.0 million to support the only dedicated children's palliative care facility, Bear Cottage, in New South Wales. Bear Cottage provides support and respite for families of children with life‑limiting conditions.

This measure delivers on the Government's election commitment.

Further information can be found in the media release titled The Coalition's Support for Bear Cottage, of 1 September 2013.

Cairns Mental Health Carers Support Hub

Expense ($m)
	2012‑13	2013‑14	2014‑15	2015‑16	2016‑17
Department of Health	‑	‑	‑	‑	‑

The Government will provide up to $230,000 in 2013‑14 to the Mental Illness Fellowship of North Queensland as a contribution to the Cairns Mental Health Carers Support Hub which provides mental health services in the Cairns region.

The cost of this measure will be met from within the existing resources of the Department of Health.

Chemotherapy services — continuation

Expense ($m)
	2012‑13	2013‑14	2014‑15	2015‑16	2016‑17
Department of Health	‑	28.0	54.2	‑	‑

The Government will provide an additional $82.2 million over two years to increase dispensing fees for Efficient Funding of Chemotherapy Drugs, listed on the Pharmaceutical Benefits Scheme.

The Review of Funding Arrangements for Chemotherapy Services recommended that dispensing fees be increased by $60 per infusion from 1 January 2014 until the expiry of the Fifth Community Pharmacy Agreement on 30 June 2015.

Further information can be found in the joint press release of 30 November 2013 issued by the Prime Minister and the Minister for Health.

Commonwealth Medical Internships — additional funding

Expense ($m)
	2012‑13	2013‑14	2014‑15	2015‑16	2016‑17
Department of Health	‑	6.0	11.0	11.0	12.0

The Government will provide $40.0 million over four years to support up to 100 additional medical internship places each year in private hospitals and non‑traditional settings, with priority given to rural and regional areas.

This measure delivers on the Government's election commitment.

Further information can be found in the Coalition's Policy to Support Australia's Health System.

Dental Reform — communications

Expense ($m)
	2012‑13	2013‑14	2014‑15	2015‑16	2016‑17
Department of Health	‑	‑1.7	‑	‑	‑

The Government will achieve savings of $1.7 million by not proceeding with funding for the Dental Reform — communications measure, announced in the 2013 Economic Statement.

The savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities.

Donation to Western Australian Children's Health Telethon

Expense ($m)
	2012‑13	2013‑14	2014‑15	2015‑16	2016‑17
Department of Health	‑	‑	‑	‑	‑
Department of Social Services	‑	‑	‑	‑	‑
Total — Expense	‑	‑	‑	‑	‑

The Government will provide $2.0 million in 2013‑14 to the Channel Seven Telethon Trust, a charitable trust supporting children's health in Western Australia. The Trust provides financial assistance to charitable organisations, children's hospitals, and funds research into children's diseases.

The cost of this measure will be met from within the existing resources of the Department of Health and the Department of Social Services.

Healthier Communities — Priority Infrastructure Programme

Expense ($m)
	2012‑13	2013‑14	2014‑15	2015‑16	2016‑17
Department of Health	‑	‑8.0	‑19.0	‑	‑

The Government will achieve savings of $27.0 million over two years by not proceeding with funding for the Healthier Communities — Priority Infrastructure Programme measure, announced in the Pre‑Election Economic and Fiscal Outlook 2013.

The savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities.

Heffron Park upgrade — contribution reversal

Expense ($m)
	2012‑13	2013‑14	2014‑15	2015‑16	2016‑17
Department of Health	‑	‑11.2	‑4.8	‑	‑

The Government will achieve savings of $16.0 million over two years by not proceeding with funding for the Heffron Park upgrade — contribution measure announced in the Pre‑election Economic and Fiscal Outlook 2013.

The savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities.

Hummingbird House — support for children's hospice

Expense ($m)
	2012‑13	2013‑14	2014‑15	2015‑16	2016‑17
Department of Health	‑	0.8	0.8	0.8	0.8

The Government will provide $5.5 million over seven years from 2013‑14 (including $0.8 million in 2017‑18, 2018‑19, and 2019‑20) to assist with the establishment and operation of Hummingbird House. Hummingbird House will provide 24 hour care for children with a life‑limiting condition offering respite, grief and bereavement services, sibling support services and accommodation for families.

Other funds will be provided by the Queensland Government and private sources.

This measure delivers on the Government's election commitment.

Further information can be found in the Coalition's Policy for Respite and Hospice Care for Children in Brisbane.

Integrated Cancer Care Centre Victoria — Peter's Project

Expense ($m)
	2012‑13	2013‑14	2014‑15	2015‑16	2016‑17
Department of the Treasury	‑	10.0	‑	‑	‑
Department of Health	‑	‑	‑	‑	‑
Total — Expense	‑	10.0	‑	‑	‑

The Government will provide $10.0 million towards the 'Peter's Project' campaign to build an integrated cancer care centre in Warrnambool, Victoria. The centre will deliver vital health services to western Victoria, including various cancer services such as radiotherapy treatment and support to people with cancer.

This measure delivers on the Government's election commitment.

Karratha Country Club — Grassing the Greens — contribution reversal

Expense ($m)
	2012‑13	2013‑14	2014‑15	2015‑16	2016‑17
Department of Health	‑	‑0.4	..	‑	‑

The Government will achieve savings of $0.4 million over two years by not proceeding with funding for the Karratha Country Club — Grassing the Greens — contribution measure announced in the Pre‑election Economic and Fiscal Outlook 2013.

The savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities.

Maintaining the Voluntary Dental Graduate Year Programme

Expense ($m)
	2012‑13	2013‑14	2014‑15	2015‑16	2016‑17
Department of Health	‑	‑12.3	‑16.0	‑4.9	‑7.6

The Government will achieve savings of $40.7 million over four years by reducing funding for the Voluntary Dental Graduate Year Programme. The Government will maintain support for 50 dental graduate placements per year which provides a structural transition to practice for new dental graduates.

The savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities.

Meakin Park Junior Sporting Association — facilities upgrade reversal

Expense ($m)
	2012‑13	2013‑14	2014‑15	2015‑16	2016‑17
Department of Health	‑	‑0.5	‑0.1	‑	‑

The Government will achieve savings of $0.5 million over two years by not proceeding with funding for the Meakin Park Junior Sporting Association — facilities upgrade measure which was announced in the Pre‑election Economic and Fiscal Outlook 2013.

The savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities.

Medicare Benefits Schedule — new and amended listings

Expense ($m)
	2012‑13	2013‑14	2014‑15	2015‑16	2016‑17
Department of Health	‑	1.7	3.9	4.7	5.2
Department of Veterans' Affairs	‑	..	0.1	0.1	0.1
Department of Human Services	‑	..	..	..	..
Total — Expense	‑	1.7	4.0	4.8	5.3

The Government will amend the Medicare Benefits Schedule and Veterans' Benefits for new and amended listings since the 2013‑14 Budget, at a cost of $15.8 million over four years.

The amendments to the Medicare Benefits Schedule include the:

addition of an item for delivery of Botox® injections to adult patients with chronic migraine;
addition of an item for tumour tissue tests to grant access to Dabrafenib (Tafinlar®) for patients with melanoma;
amendment to an item for tumour tissue tests to grant access to Erlotinib (Tarceva®) for patients with lung cancer; and
amendment to an item for capsule endoscopy to improve diagnostic services for patients with gastrointestinal bleeding.

Further information will be available in the summary of changes included in the Medicare Benefits Schedule issued by the Department of Health as the amendments take effect.

Palmerston Hospital

Expense ($m)
	2012‑13	2013‑14	2014‑15	2015‑16	2016‑17
Department of the Treasury	‑	‑	20.0	20.0	‑
Department of Health	‑	‑	‑	‑	‑
Total — Expense	‑	‑	20.0	20.0	‑

The Government will provide an additional $40.0 million over two years towards the construction of a new hospital in Palmerston, Northern Territory. The new hospital will provide a full emergency department, a paediatrics ward, and elective surgery capabilities with a focus on low acuity services.

This measure delivers on the Government's election commitment.

Pharmaceutical Benefits Scheme — new and amended listings

Expense ($m)
	2012‑13	2013‑14	2014‑15	2015‑16	2016‑17
Department of Health	‑	28.0	20.2	33.8	40.8
Department of Human Services	‑	0.5	0.3	0.5	0.7
Department of Veterans' Affairs	‑	0.3	‑0.3	‑0.1	..
Total — Expense	‑	28.8	20.2	34.2	41.5
Related revenue ($m)
Department of Health	‑	nfp	nfp	nfp	nfp

The Government will provide $124.7 million over four years for a number of new and amended listings on the Pharmaceutical Benefits Scheme and the Repatriation Pharmaceutical Benefits Scheme.

New listings from 1 December 2013 include:

Tafinlar® (dabrafenib) for the treatment of melanoma;
Sutent® (sunitinib) for the treatment of pancreatic cancer; and
Prolia® (denosumab) for the treatment of osteoporosis.

New listings from 1 January 2014 include:

Tarceva® (erlotinib) for the treatment of lung cancer;
Iressa® (gefitinib) for the treatment of advanced lung cancer; and
Quetiapine (all brands) for the treatment of schizophrenia and bipolar disorder.

The costs to Government of some of these medicines are reduced by the revenue from pricing agreements negotiated between the Government and the pharmaceutical manufacturers. Details of this revenue is not for publication due to commercial sensitivity.

General consumers will continue to pay a $36.10 co‑payment per prescription and concession card holders will pay a $5.90 co‑payment per prescription.

Further information can be found in the press releases of 28 October 2013 and 2 December 2013 issued by the Minister for Health.

Pharmaceutical Benefits Scheme — price amendments

Expense ($m)
	2012‑13	2013‑14	2014‑15	2015‑16	2016‑17
Department of Health	‑	0.8	1.5	1.5	1.6
Department of Veterans' Affairs	‑	..	..	..	..
Total — Expense	‑	0.8	1.6	1.5	1.6

The Government will provide $5.5 million over four years for price amendments for certain medicines currently listed on the Pharmaceutical Benefits Scheme and the Repatriation Pharmaceutical Benefits Scheme.

The price amendments from 1 December 2013 include:

Aurothiomalate sodium for the treatment of rheumatoid arthritis;
Nitrazepam a short‑term sleeping tablet; and
Vigabatrin for the treatment of epilepsy.

The price amendments from 1 January 2014 include:

Benztropine injections for the treatment of Parkinson's Disease; and
Cyclophosphamide for the treatment of cancer.

These price amendments were recommended by the Pharmaceutical Benefits Pricing Authority, an independent non‑statutory body that reviews the price of products supplied under the PBS and vaccines on the National Immunisation Programme.

Further information can be found in the press releases of 28 October 2013 and 2 December 2013 issued by the Minister for Health.

Priority Health Initiatives

Expense ($m)
	2012‑13	2013‑14	2014‑15	2015‑16	2016‑17
Department of Health	‑	‑23.8	‑106.8	‑83.3	‑51.6

The Government will achieve savings of $265.5 million over four years by not proceeding with funding for the Priority Health Initiatives measure, announced in the Pre‑Election Economic and Fiscal Outlook 2013.

This funding was identified by the former Government to fund its election commitments and will be redirected by the Government to help repair the Budget and fund policy priorities.

Public Hospital System — additional funding

Expense ($m)
	2012‑13	2013‑14	2014‑15	2015‑16	2016‑17
Department of the Treasury	‑	66.3	‑	‑	‑
Department of Health	‑	‑	‑	‑	‑
Total — Expense	‑	66.3	‑	‑	‑

The Government will provide an additional $66.3 million to States and Territories to support public health and hospital services funded under the National Health Reform Agreement (NHRA). This funding will increase cash flow certainty to Local Hospital Networks this year prior to full implementation of activity based funding from 1 July 2014, and mitigate the impact of parameter variations applicable up to the Mid‑Year Economic and Fiscal Outlook that would otherwise reduce funding payable to States and Territories under the NHRA in 2013‑14.

Sporting Communities Initiative — reversal

Expense ($m)
	2012‑13	2013‑14	2014‑15	2015‑16	2016‑17
Department of Health	‑	‑0.8	‑16.3	‑	‑

The Government will achieve savings of $17.2 million over two years by not proceeding with funding for the Sporting Communities Initiative measure announced in the Pre‑election Economic and Fiscal Outlook 2013.

This funding was identified by the former Government to fund its election commitments and will be redirected by the Government to help repair the Budget and fund policy priorities.

Thebarton Oval Redevelopment Project — contribution reversal

Expense ($m)
	2012‑13	2013‑14	2014‑15	2015‑16	2016‑17
Department of Health	‑	‑4.6	‑2.0	‑	‑

The Government will achieve savings of $6.6 million over two years by not proceeding with funding for the Thebarton Oval Redevelopment Project — contribution measure announced in the Pre‑election Economic and Fiscal Outlook 2013.

The savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities.

Uncommitted Health Portfolio Funding — redirection of funding

Expense ($m)
	2012‑13	2013‑14	2014‑15	2015‑16	2016‑17
Department of Health	‑	‑13.2	‑7.5	‑6.7	‑6.9

The Government will redirect $34.3 million of funding from the Health portfolio, including from the:

Aboriginal and Torres Strait Islander Health programme ($1.0 million in 2013‑14);
Chronic Disease Prevention and Service Improvement Fund ($5.0 million over four years from 2013‑14);
National Rural and Remote Health Infrastructure programme ($22.3 million over four years from 2013‑14); and
Public Health programme ($6.0 million in 2013‑14).

This funding was identified as a saving by the former Government to fund its election commitments and will be redirected by the Government to help repair the Budget and fund policy priorities.

Youth e‑mental health platform

Expense ($m)
	2012‑13	2013‑14	2014‑15	2015‑16	2016‑17
Department of Health	‑	2.5	1.5	1.0	‑

The Government will provide $5.0 million over three years to the Young and Well Cooperative Research Centre to establish a new e‑mental health platform aimed at making it easier for young people to get the help they need and to manage their treatment.

This measure delivers on the Government's election commitment.

Further information can be found in the Coalition's Policy for Efficient Mental Health Research and Services.

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