Funding Body achievements in 2012–13
National Health Reform Act 2011 commences 1 July 2011
COAG National Health Reform Agreement signed 2 August 2011
HRIG Financial Operations Subgroup in operation November 2011–October 2012
Recruitment EOI for employment released March–April 2012
National Payments System workshops commenced 18 April 2012
First Funding Body staff member commences June 2012
Acting Administrator commenced 27 June 2012
(permanent appointment 1 Jan 2013)
Funding Body inception 1 July 2012
Assist states and territories transition to the Payments System July 2012–March 2013
Acting CEO Funding Body commenced 23 July 2012
(permanent appointment 2 February 2013)
Administrator of the National Health Funding Pool website launch and publishing of first three monthly reports 7 November 2012
2013–14 Portfolio Budget Statement and performance measures for the Funding Body 14 May 2013
Determination under Section 24.1 of the Public Service Act 1999 — Terms and Conditions of employment 3 May 2013
Determination under Section 32 of the FMA — received appropriation 24 June 2013

One year old — from its inception on 1 July 2012 through to 30 June 2013, the Funding Body’s achievements in its first year of operation have been resoundingly positive. Initial preparation in advance of establishment, involved the groundwork laid by the Health Reform Implementation Group (HRIG) Financial Operations Subgroup, to build a Payments System and work closely with the Commonwealth, states and territories to develop and implement the national health reform funding arrangements.

Following the release of an Expression of Interest for employment with a newly formed FMA agency, the Funding Body recruited nationally, engaging its first staff member in June 2012. The Acting CEO of the Funding Body commenced on 23 July 2012 and appointed permanently on 2 February 2013 for a period of fiveyears.

States and territories progressively implemented the legislative requirements to participate in the national health reform funding arrangements and Payments System, and were successfully supported by the Funding Body.

As part of the Commonwealth Health portfolio, the Business Services section of the department provided support to enable the Funding Body to develop its business, financial and corporate operations under a shared services Memorandum of Understanding.

Progress was swift — within its first year of operation, the FundingBody, through its highly productive business units and staff, established key policies and processes to support the Administrator and Funding Body’s many statutory responsibilities and functions. This cohesive team successfully assumed the Funding Body’s principal role of supporting the obligations and responsibilities of the Administrator by providing transparent and efficient administrative support services. These support services included governance and compliance, the provision of strategic policy and directional advice, financial assistance and reporting, and data modelling and analysis.

The Funding Body worked steadily for the establishment of content, the framework and launch of the Administrator’s informative Public Hospital Funding website www.publichospitalfunding.gov.au on 7 November 2012, along with the release of three months of legislative monthly reporting requirements. All subsequent monthly reports, once completed, were released on the website.

A library of key strategic framework documents, relating to the Administrator’s functions and those of the FMA Agency requirements, was developed by the Funding Body. These included detailed plans for risk management, strategy, and operations.

Vision — all staff demonstrated their commitment and understanding of the Vision and Mission. They have worked together collaboratively and developed a culture of innovation and integrity, adopting a consultative approach when dealing with stakeholders, health reform bodies, health Ministers and jurisdictional representatives, and in delivering key outcomes of the Agreement.

FMA strategic framework documents developed

  • Chief Executive Instructions
  • Finance Business Rules
  • Corporate Business Rules
  • Financial Delegations
  • Human Resources Delegations
  • Human Resources Strategic Framework
  • Business Continuity Planning
  • Risk Management Framework
  • Strategic Plan 2013–16
  • HR Workforce Management Plan
  • Operational Plans 2012–13
  • Fraud Control Framework

Administrator documents developed

Administrator documents developed
Determination 01: Provision of monthly data by states and territories as the basis of monthly reporting 14 Aug 2012
Determination 02: Adjustments to Commonwealth funding under the Agreement 27 Nov 2012
Determination 03: Provision of actual 2012–13 hospital services data for reconciliation with estimated services 27 Feb 2013
Determination 04: Notional contracted services 17 June 2013
Business Rules Volume 1 proof of concept (July–Dec 2012) released 17 June 2013
2012–13 Reconciliation Framework embargoed draft 17 June 2013
(subsequent final release 30 July 2013)
Three Year Data Plan 2013–14 — 2015–16
circulated to jurisdictions
16 May 2013
(subsequent Standing Council on Health approval 26 July 2013)

Funding Body future priorities

At the start of its operation, the Funding Body identified and adopted five strategic objectives to define the scope of responsibility and to align with its organisational vision, mission and values. Following its highly successful first year of operation, and looking to continue to build on this foundation, the Funding Body has based its future priorities on ensuring the delivery of its strategic objectives and continuous improvement in the support provided to the Administrator and the services provided to jurisdictions.

The basis of the Funding Body’s role is in supporting the obligations and responsibilities of the Administrator and providing transparent and efficient administration of Commonwealth, state and territory funding of the Australian public hospital system.

It is from this position that the Funding Body has outlined its priorities for the future, based on the deliverables of its strategic objectives, while successfully performing its day–to–day functions:

  • Achieving an Enterprise Agreement (EA) — the Funding Body will develop and begin negotiating its EA in line with the requirements of the Australian Public Service Bargaining Framework 2014. The Funding Body will continue to operate as a fully functional and compliant agency, cognisant of government policy requirements, such as the Public Governance and Performance Accountability Act 2013, and Public Interest Disclosure Act 2013, to ensure its continued compliance with policy changes.
  • Harmonisation of data plans — achieving a harmonisation of the data requirements under the Agreement will allow relevant health reform bodies to share information and work towards policy alignment, particularly in relation to timing, privacy and legal matters, information management, communication and engagement with jurisdictions.
  • Reconciliation and data matching — the Funding Body conducts reconciliations between estimated and actual service volume data to ensure that all local hospital networks receive Commonwealth funding based on their actual activity and to prevent the receipt of double funding from the Commonwealth.
  • Calculation of growth and funding guarantees — accurately calculate the growth and funding guarantees of the Commonwealth contribution, including the determination and allocation of the additional $16.4 billion to states and territories. This is a significant investment from the Commonwealth, which will see them transition to providing at least 50 per cent of the efficient price of hospital services.
  • Further develop stakeholder engagement — the Funding Body values the relationships it has developed, based on mutual trust and respect, with its internal and external stakeholders, and resolves to maintain and strengthen these relationships through continued consultation and collaboration.

Report on performance

On establishment, and throughout 2012–13, the Funding Body was reported under the Commonwealth Department of Health. Since this was the first year of operation, there has been no specific and agreed performance measures put in place by the Commonwealth Government.

During the year, the Funding Body, together with Commonwealth Government processes, agreed to the 2013–14 performance measures. Although specific to 2013–14, these measures were also relevant to 2012–13 and were successfully achieved during this period.

The measures relating to 2013–14 are outlined below.

Outcomes and planned performance

The outcome and planned performance is to:

Provide transparent and efficient administration of Commonwealth, state and territory funding of the Australianpublic hospital system, and support the obligations and responsibilities of the Administrator.

The deliverables are to:

  • assist the Administrator to develop the ‘Three Year Data Plan’ and associated funding reconciliation frameworks
  • assist the Administrator to ensure the Pool operations are in accordance with directions from the responsible state or territory Minister, and in line with the Agreement
  • assist the Administrator to transparently report on the operations of the Pool and state managed funds.

The Key Performance Indicators are to:

  • assist the Administrator to calculate the Commonwealth contribution to the Pool
  • support the Administrator in authorising payment instructions in accordance with directions from the responsible state or territory Minister, and in line with the Agreement.

The Funding Body will provide a full report on its performance against Government agreed performance measures in the National Health Funding Body Annual Report 2013–14.

 

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