Health

In 2016‑17, the Commonwealth will provide funding of $18.7 billion to support State health services, including $17.9 billion in National Health Reform funding and $811.5 million in National Partnership payments, as detailed in Table 2.4.

National Health Reform funding

In 2016‑17, National Health Reform funding is estimated to be $17.9 billion. This is an increase of $1.0 billion, or 6.2 per cent, from 2015‑16, excluding an adjustment for 2014‑15 outcomes.

(a) The efficient growth funding component of National Health Reform funding is indicative only. The distribution of efficient growth funding will be determined by the actual efficient growth in activity in each of the States

(b) National Health Reform funding in 2015‑16 includes an adjustment of $327.8 million related to services provided in 2014‑15.

From July 2014 to June 2017, National Health Reform funding is linked to the level of services delivered by public hospitals as provided under the National Health Reform Agreement. During this period, each State's entitlement is directly linked to the growth in public hospital activity provided in that jurisdiction and the national efficient price determined by the Independent Hospital Pricing Authority.

At the April 2016 Council of Australian Governments meeting, the Commonwealth and the States signed a Heads of Agreement for public hospitals funding from 1 July 2017 to 30 June 2020 ahead of consideration of longer‑term arrangements. This agreement preserves important parts of the existing system, including activity based funding and the national efficient price, with growth in Commonwealth funding capped at 6.5 per cent a year. It focuses on improving patient safety and the quality of services, and reducing unnecessary hospitalisations.

A new spending measure associated with this additional funding is discussed in Budget Paper No. 2, Budget Measures 2016‑17.

The Treasurer determined final entitlements for 2014‑15 National Health Reform funding in accordance with advice from the Administrator of the National Health Funding Body.

National Partnership payments for health

A total of $811.5 million will be provided to the States in 2016‑17 under the following health categories:

• health services;
• health infrastructure;
• Indigenous health; and
• other health payments.

Health services

In 2016‑17, the Commonwealth is estimated to provide $79.7 million to support the delivery of health services in the States.

(a) Funding is indicative only and will depend on final entitlements to National Health Reform funding from 2017‑18 to 2019‑20.

The Commonwealth will provide funding to Tasmania and the Australian Capital Territory for the National Partnership on additional assistance for public hospitals in the event that growth in National Health Reform funding is lower than growth in CPI and population in a given year. These arrangements will be settled following further negotiations with Tasmania and the Australian Capital Territory.

A new spending measure associated with the additional assistance for public hospitals is discussed in Budget Paper No. 2, Budget Measures 2016‑17.

The Commonwealth is providing funding for the National Partnership on expansion of the BreastScreen Australia programme to improve the early detection of breast cancer by expanding the target age range of the BreastScreen Australia programme from women 50 to 69 years of age to women 50 to 74 years of age. This builds on the existing BreastScreen Australia programme, which commenced in 1991.

The Commonwealth is providing funding for the National Partnership on Hummingbird House for the operation of a dedicated respite and hospice care facility for children with life limiting conditions and their families and carers.

The Commonwealth is providing funding for the National Partnership on the National Bowel Cancer Screening Programme — participant follow‑up function. This initiative funds the follow‑up of participants who return a positive test result and are not recorded as having attended a consultation with a health professional. The programme will be expanded to provide access to biennial screening for all Australians aged 50 to 74 by 2019‑20.

The Commonwealth is providing funding for the National Partnership on OzFoodNet. This is a collaborative initiative with State health authorities for enhanced foodborne disease surveillance. This initiative aims to provide a better understanding of the causes and incidence of foodborne disease in the community and to provide an evidence base for policy formulation. OzFoodNet collaborates nationally to coordinate investigations into foodborne disease outbreaks, particularly those that cross State and country borders.

A new spending measure associated with the OzFoodNet programme is discussed in Budget Paper No. 2, Budget Measures 2016‑17.

The Commonwealth is providing funding for the National Partnership on Royal Darwin Hospital — equipped, prepared and ready to maintain the National Critical Care and Trauma Response Centre at Royal Darwin Hospital in a state of readiness to respond to major health incidents in the region.

The Commonwealth is providing funding for the National Partnership on the Torres Strait health protection strategy — mosquito control to assist in mosquito detection and elimination. Funding also supports employment of a Torres Strait communication officer to improve communication and coordination between Australia and Papua New Guinea to reduce the spread of communicable diseases in the Torres Strait.

New spending measures associated with the Torres Strait health protection strategy are discussed in Budget Paper No. 2, Budget Measures 2016‑17.

The Commonwealth is providing funding for the National Partnership on Torres Strait / Papua New Guinea cross border health issues. Under this programme, the Commonwealth is providing funding to Queensland as a contribution towards the costs of treating Papua New Guinean nationals who travel through the Torres Strait Treaty zone and access healthcare facilities in the Queensland health and hospitals network.

A new spending measure associated with Torres Strait / Papua New Guinea cross border health issues is discussed in Budget Paper No. 2, Budget Measures 2016‑17.

The Commonwealth is providing funding for the National Partnership on vaccine‑preventable diseases surveillance to improve surveillance reporting of nationally notifiable vaccine‑preventable diseases and allow national monitoring, analysis and timely reporting of data to provide an evidence base for policy formulation.

A new spending measure associated with surveillance of vaccine‑preventable diseases is discussed in Budget Paper No. 2, Budget Measures 2016‑17.

The Commonwealth is providing funding for the National Partnership for Victorian Cytology Service to support the early detection of pre‑cancerous cervical conditions by processing pap smears undertaken by general practitioners and other health professionals.

National Partnership on Improving Health Services in Tasmania

The Commonwealth is providing funding for a package of measures to address pressures on the Tasmanian health system and improve healthcare outcomes for Tasmanians.

The Commonwealth has provided funding to strengthen the capacity of existing publicly funded palliative care services and networks, and to improve access to multi‑disciplinary community based palliative care services.

The Commonwealth has provided funding to support the continued operation of the Cradle Coast Connected Care clinical repository. The clinical repository stores advance care plans, which document a person's preferences about health, personal care and preferred health outcomes, and guide future decision making when the person cannot make or communicate decisions relating to their health needs.

The Commonwealth is providing funding to support clinical system redesign at the Royal Hobart Hospital and the Launceston General Hospital to alleviate pressure on emergency departments through innovative service delivery models such as emergency medical units.

The Commonwealth is providing funding for packages of care to support Tasmanians not well served by mainstream care approaches, including those affected by alcohol, drug, and other complex mental health issues. The funding will be innovative and flexible to provide intensive, short term support that is individualised, community based and recovery focused.

The Commonwealth is providing funding to increase Tasmania's capacity to perform elective surgery procedures and increase efficiency and productivity through improved elective surgery management practices. This will ensure that patients receive their operations in priority of clinical need and will support Tasmania in managing its elective surgery waiting list.

The Commonwealth is providing funding to Tasmania to improve the whole of system approach to subacute and acute services models. The funding also provides for continued services at the John L. Grove Rehabilitation Centre.

Health infrastructure

In 2016‑17, the Commonwealth is estimated to provide $156.2 million to support the development of health‑related infrastructure in the States.

The Commonwealth is providing funding to support the development of health infrastructure projects of national significance. The Commonwealth will collaborate with the States to expand and modernise key public hospitals across Australia.

These projects were previously funded from the Health and Hospitals Fund, which closed on 29 October 2015.

The Commonwealth is providing funding to support infrastructure to deliver a world class cancer care system in Australia. This funding will help modernise cancer services and improve detection, survival and treatment outcomes, particularly for patients in regional and rural Australia.

These projects were previously funded from the Health and Hospitals Fund, which closed on 29 October 2015.

The Commonwealth is providing funding to invest in regional Australia. Regional priority funding will improve access to essential health services for Australians living in rural, regional and remote areas.

These projects were previously funded from the Health and Hospitals Fund, which closed on 29 October 2015.

The Commonwealth is providing funding for the National Partnership on the Albury‑Wodonga Cardiac Catheterisation Laboratory. This new laboratory will enable local residents suffering from heart conditions to access quality care, without the need to travel long distances to capital cities.

The Commonwealth is providing funding for the National Partnership on Bright Hospital — feasibility study. This study will examine the feasibility of redeveloping the Bright Hospital.

The Commonwealth is providing funding for the National Partnership on construction of Palmerston Hospital. The new hospital will provide a full emergency department, a paediatrics ward, and medical and surgical services. Additional funding is being provided for Palmerston Hospital as a regional priority round project.

The Commonwealth will provide funding for the National Partnership on improving local access to health care on Phillip Island to construct a new Health and Medical Hub.

The Commonwealth is providing funding for the National Partnership on redevelopment of the Royal Victorian Eye and Ear Hospital for the completion of the redevelopment of the Royal Victorian Eye and Ear Hospital.

The Commonwealth is providing funding for the National Partnership for the upgrade of Ballina Hospital for the construction of a second operating theatre and upgrade of the medical imaging department at Ballina Hospital. This will improve the delivery of services in the hospital and enable an increase in the operating theatre capacity.

Indigenous health

In 2016‑17, the Commonwealth is estimated to provide $17.4 million to the States for programmes to improve the health of Indigenous people.

The Commonwealth is providing funding for the National Partnership on accommodation and infrastructure related to renal services for Aboriginal and Torres Strait Islander peoples in the Northern Territory for the construction of renal accommodation and dialysis facilities.

The Commonwealth is providing funding for the National Partnership on addressing blood borne viruses and sexually transmissible infections in the Torres Strait to increase the number of ongoing primary health care staff in the Torres Strait to undertake disease prevention activities, surveillance, testing and treatment, sexual health checks, and to deliver a culturally appropriate sexual health education campaign.

New spending measures associated with the Torres Strait health protection strategy are discussed in Budget Paper No. 2, Budget Measures 2016‑17.

The Commonwealth is providing funding for the National Partnership on improving trachoma control services for Indigenous Australians for the continuation of trachoma control activities in jurisdictions where trachoma, an infectious disease which can lead to blindness, is endemic.

National Partnership on Northern Territory remote Aboriginal investment

The Commonwealth is providing funding for the National Partnership on Northern Territory remote Aboriginal investment. This continues the Commonwealth's investment under the National Partnership on Stronger Futures in the Northern Territory to address Indigenous disadvantage.

The National Partnership will support the Northern Territory in taking practical action to improve the lives of Aboriginal people through activities and services to improve outcomes in schooling, community safety, health and housing, and create job opportunities for adults.

This National Partnership is discussed further in the Community Services, Education and Affordable Housing sections of this Part.

The Commonwealth will provide funding to improve health and wellbeing by supplementing primary health care services in remote Northern Territory communities to position the Northern Territory for the long term sustainability of its services to Aboriginal people. This funding will include support for the provision of integrated oral and hearing health services to children in remote communities.

The Commonwealth is providing funding for the National Partnership for the rheumatic fever strategy to support, register and control programmes for acute rheumatic fever and rheumatic heart disease in Indigenous children.

A new spending measure associated with the rheumatic fever strategy is discussed in Budget Paper No. 2, Budget Measures 2016‑17.

Other health

In 2016‑17 the Commonwealth is estimated to provide $558.2 million to the States for further health related National Partnerships.

The Commonwealth is providing funding for the National Partnership on adult public dental services to support the provision of dental services to adults who rely on the public dental system.

(a) State allocations are yet to be finalised.

The Commonwealth will provide funding for the National Partnership on the child and adult public dental scheme to support the delivery of services in the public dental system. Adult concession card holders and all children will be eligible for the Scheme. The Commonwealth's contributions will be based on 40 per cent of the national efficient price of dental services.

Funding for the Scheme is a new spending measure in the 2016‑17 Budget. This measure is discussed in Budget Paper No. 2, Budget Measures 2016‑17 and involves replacing the National Partnership on adult public dental services and the Commonwealth provided Child Dental Benefits Schedule.

The Commonwealth is providing funding for the National Partnership on essential vaccines to improve the health of Australians through the cost effective delivery of immunisation programmes under the National Immunisation Programme. This National Partnership provides funding to the States for the purchase of essential vaccines, that have not yet transitioned to centralised purchasing arrangements, for all eligible individuals under the National Immunisation Programme.

The Commonwealth is providing funding for the National Partnership on the National Coronial Information System. This National Partnership supports the administration, maintenance and improvement of Australia's national database of coronial data.

A new spending measure associated with the National Coronial Information System is discussed in Budget Paper No. 2, Budget Measures 2016‑17.

The Commonwealth will provide funding for the National Partnership for response to the Zika virus to assist in enhancing the ability of the Dengue Action Response Team in Cairns and Townsville to increase surveillance and control in areas at high risk of the exotic mosquito, Aedes aegypti, spreading the Zika virus in Queensland.

The Commonwealth is providing funding for the National Partnership on supporting National Mental Health Reform to deliver improved health, social, economic and housing outcomes for people with severe and persistent mental illness by addressing service gaps and preventing ongoing cycling through State mental health systems.