Among the major changes resulting from the healthcare review is the establishment of Hospitals Victoria, a new agency in the Department of Health. Photo: DLMcK.
The Victorian Government has accepted all but one of the recommendations made in a review of its Health Services Plan, dedicating $10.3 billion towards the public healthcare system.
A further $1.5 billion has been invested into supporting Victoria’s public hospitals, on top of the already $8.8 billion set aside in the state budget. This move was among the 27 recommendations proposed by the Expert Advisory Committee in its review, of which only one was rejected.
Premier Jacinta Allan said the government decided not to forcibly amalgamate Victoria’s health services, as suggested. Instead it opted to support a strengthened partnerships model while pursuing other means of centralisation that will reduce non-clinical duplication and double-up.
However, Victorian Healthcare Association CEO Leigh Clarke believes the key pillars detailed within the Health Services Plan – establishing Local Health Service Networks, formalised relationships, and a Victorian role-delineation framework – in effect amount to a clinical services amalgamation.
“With required network-wide consolidation of clinical activity and clinical management, this is centralising administration and resources across health services without immediately having to consolidate,” she said.
Ms Clarke was pleased the Victorian Government “returned” $1.5 billion into the health system, which she said would go some way to addressing the crisis impacting clinical staff and services.
“The VHA are pleased to have supported publicly funded healthcare services to navigate what has been a significant period of uncertainty surrounding reform and potential budget cuts,” she said.
“The Victorian Government has listened to the VHA’s concerns, and the concerns of the sector, but there is more to unpack in the days ahead.
“The Victorian Government needs to deliver further consultation with the health sector to enable considered implementation of the reform recommendations. This requires further consultation with stakeholders before embarking on any major changes, including health service employees, consumers and clinicians.”
Among the major changes is the establishment of Hospitals Victoria, which will be a new agency in the Department of Health, led by CEO Siva Sivarajah, who reports directly to health ministers.
The agency will focus on supporting hospitals to deliver frontline care by promoting financial and administrative sustainability throughout the health system.
Ms Clarke said the agency could help Victoria’s health system to break even by partnering with services on financial management initiatives.
“We note the creation of a new entity known as Hospitals Victoria and would like to see a more collaborative way of working with health services – we must not repeat the mistakes of the past few months,” she said.
“We call for improved communication and collaboration in the development of health service budgets.”
Victoria’s Government has also committed to rolling out an interconnected Electronic Medical Records system between all its hospitals.
Ms Clarke welcomed this reform – which the VHA called for in its budget submission earlier this year – along with the commitment to greater coordination of waitlists, networked clinical service planning and better use of availability capacity across the system.
“Reform is not without its risk and this needs to be carefully considered,” she said.
“Secure and sustainable funding is needed to address the key enablers of reform, such as filling workforce gaps with a skilled and mobile workforce and investing in good change management that minimises disruption such as loss of CEOs and other leaders.
“The Victorian Government must take strong leadership in implementing the recommendations of the Health Services Plan review with appropriate levels of funding.”
