The National Health Funding Body Chief Executive Officer (CEO) is required to prepare and present a report of operations to the Commonwealth Parliament pursuant to section 267 of the National Health Reform Act 2011 (the Act) and section 70 of the Public Service Act 1999. This Annual Report satisfies and is presented under both Acts.
The CEO is also required to provide a copy of this report to each state and territory Health Minister under section 267(2) of the Act.
This Annual Report is prepared in accordance with the Requirements for Annual Reports as issued by the Department of the Prime Minister and Cabinet, and approved by the Joint Committee of Public Accounts and Audit under subsection 70(2) of the Public Service Act 1999.
The Annual Report details the activities of the National Health Funding Body during its first year of operation from 1 July 2012 to 30 June 2013.
If you require further information or have any queries in relation to this Annual Report, please contact:
National Health Funding Body
P.O. Box 3139, Manuka ACT 2603
Phone: 1300 930 522
Media: 02 6289 7425
About this report
The National Health Funding Body Annual Report 2012–13 summarises the National Health Funding Body’s performance for 2012–13. It outlines its performance against its strategic objectives and goals, as set out in its National Health Funding Body Strategic Plan 2013–16.
This Annual Report also includes the Financial Statements and corporate governance processes of the National Health Funding Body for 2012–13. The National Health Funding Body is committed to open and accountable reporting on its performance.
To help readers search for specific information, an index (page 91) and disclosure index (page 81) for specific reporting requirements have been included.
Letter of transmittal
Chief Executive Officer’s Message
It is with pleasure that I present the inaugural National Health Funding Body (Funding Body) Annual Report, for the financial year ending 30 June 2013.
In August 2011, the Council of Australian Governments agreed to major structural health reforms, which resulted in the National Health Reform Agreement (Agreement) and the National Health Reform Act 2011. It has been a great privilege to assist in the implementation of one of the most significant reforms to public hospital funding in recent history.
The Funding Body was created to assist the Administrator of the National Health Funding Pool (Administrator) to provide transparency and efficiency of public hospital funding. The successful passing of legislation to support the operations of the Administrator and the Funding Body, in all states and territories, is a clear demonstration of the commitment all Australian Governments have to the transparency and accountability of these national health reform arrangements.
As Chief Executive Officer of the Funding Body, I take enormous pride in reporting the substantial progress and milestones achieved in our first year of operation. It is a testament to the commitment and professionalism of our talented and dynamic team, that all legislative requirements and obligations were met.
During 2012–13, all states and territories transitioned to the national health reform funding and payment arrangements, through the implementation of a national payment system and best practice financial management and governance frameworks. This was a significant achievement and these arrangements have enabled the processing of over $36 billion of Commonwealth, state and territory funding to Local Hospital Networks and other providers.
We have already facilitated increased transparency via the monthly reporting of national health reform funding and payment flows on the www.publichospitalfunding.gov.au website. This has been a major step in enabling the Australian community to access and understand the investment made by the Commonwealth, states and territories in the provision of hospital services.
We have adopted a consultative approach when dealing with all health reform stakeholders in delivering and implementing the outcomes of the Agreement. Through this approach, our energetic team continues to demonstrate its shared vision by working collaboratively in the spirit of innovation and commitment.
The Funding Body is committed to moving forward and further developing the key foundations already established for public hospital funding. Over the next few years we will see the Funding Body support the Administrator to determine and apply efficient growth funding for hospital services under the Agreement, which will see the Commonwealth increase its funding contribution to states and territories by at least $16.4 billion by 2019–20.
I would like to take this opportunity to recognise the direction and professionalism of the Administrator, Mr Robert (Bob) Sendt. His unwavering focus on implementing these national health reform funding arrangements during the year has placed the Funding Body in a good position for a strong and effective future. I, along with the staff of the Funding Body, look forward to working collaboratively with Mr Sendt over the coming year.
Finally, I applaud the efforts and achievements of the Funding Body in 2012–13, and look forward to continuing to lead this professional organisation. By working in collaboration with all stakeholders to drive the implementation of the Agreement, we will facilitate greater efficiency and financial sustainability of our Australian public health system, both now and into the future.
Mr Lynton Norris
Chief Executive Officer
National Health Funding Body