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The Victorian Coalition Government has secured a better deal for Victoria’s health system by signing an improved National Health Reform Agreement with the Commonwealth Government.

The COAG agreement signed by the previous state Labor Government failed to protect Victorians and the unique features of our health system. At the February COAG meeting, and through a series of extensive negotiations since, the Victorian Coalition has been able to deliver significant improvements to the benefit of Victoria’s health system, including:

The injection of an additional $16.4 billion nationally from 2014-15 to 2019-20, providing up to an extra $4.1 billion for Victoria

Up to an additional $300 million for Victorian hospitals to be negotiated in 2013 to allow us to maintain higher levels of emergency department and elective surgery services

$50 million of specific hospital improvement funding to allow Victoria to improve elective surgery and emergency department services

The exemption of Victoria from the Commonwealth takeover of responsibility for Home and Community Care services to ensure we continue our unique Victorian arrangements which rely on essential support from our local governments

The retention of funding for Victorian hospitals under State legislative and financial control through the agreed funds pooling arrangements, thus ensuring that Victorian hospital funding remains in Victoria

No Commonwealth claw back of Victoria’s GST revenue, leaving the state’s best source of revenue untouched

Maintaining State Government control over the hospital system in Victoria, to protect Victoria’s unique local health service networks and ensure that the strengths of our hospital system are not compromised by inappropriate long-distance interference from Canberra

Specific arrangements negotiated by Victoria to protect small rural hospitals, under which the Victorian Government will play a key role in decisions regarding which Victorian hospitals received block funding, and

State Government access to Commonwealth health data to assist in the planning of Victorian health services.

Victoria has taken a lead in the negotiations with the Commonwealth on this agreement and has worked in good faith since coming to government to get the best possible deal for the people of Victoria.

The new agreement draws heavily on the Victorian health service model, including activity-based funding and local hospital governance arrangements which we have had for some time here in Victoria. This will now be introduced into all other states and territories.

In our negotiations we have been able to protect other important strengths of Victoria’s health system, including local hospital boards and the Home and Community Care arrangements.

The deal will see Victoria work bilaterally with the Commonwealth to determine which hospital services are eligible for Commonwealth funding.

The arrangements in the agreement mean the states and the Commonwealth will share responsibility for the future financial sustainability of Australia’s public hospital system.

Shared responsibility means the Commonwealth will need to consult with the states before making any significant health policy changes such as MBS, PBS, aged care and private health insurance changes that could result in increased costs for state public hospital systems.

Victoria had argued strongly at COAG in February for the Commonwealth to take advice from an expert panel of doctors and health professionals and administrators on the proposed performance targets in the National Partnership Agreement. While the Expert Panel’s review led to improvements, achievement of the targets remains very challenging for all states.
–Ted Baillieu, Premier of Victoria