$10bn To Boost The Health Of Ailing Hospital System

The Age

Wednesday May 14, 2008

Nick Miller, Health Editor

A $10 billion fund to refurbish Australia's decaying hospitals and build new medical research facilities is the headline item in the health budget.

The money will come from this year's and next year's surpluses, but none of it will be spent until mid-2009.

It is the biggest health surprise in budget, after the early revelation of changes to the Medicare levy surcharge for those without private health insurance.

It comes on top of a $3.3 billion package promised in the election campaign that will be distributed over the next four years to reduce elective surgery waiting lists, establish new GP "super-clinics" and recruit nurses.

Health Minister Nicola Roxon said the focus of the budget was to meet election promises and "end the blame game" in health between Canberra and the states. But she is yet to negotiate a new funding arrangement with the states, instead offering an extra $1 billion to tide them over to 2009. The National Health and Hospitals Reform Commission has filed its first report on how that relationship should change.

In the meantime, $600 million is to be handed out over four years to reduce elective surgery waiting lists, including $150 million for a national blitz that has already begun, $150 million for infrastructure improvements such as new day surgery units, and $300 million in incentive payments that the states get only if they meet waiting list reduction targets.

The separate Health and Hospitals Fund will be spent on renewal and refurbishment of hospitals, new hospital facilities, medical technology equipment and medical research facilities and projects.

The Government will control where the money is spent. Individual projects will have to apply for funding and will be evaluated against "rigorous criteria". Future budget surpluses may be used to add to the fund, the Government said.

It replaces the previous government's Health and Medical Investment Fund, which will be phased out over the next year, saving $352 million.

The Government has also funded its $39 million election promise of more nursing places, offering cash bonuses for nurses to return to work, and $99.5 million for 400 new university places for nurses, of which Victoria gets 99. But it comes at the expense of a $170 million plan for in-hospital training for enrolled nurses.

But the most controversial part of the health budget is in dental care. The Government boasts a new $491 million teen dental plan, which provide an annual check-up for most of the nation's teenagers, and a $290 million plan over three years to help states fund a million dental consultations and treatments to reduce public dental waiting lists.

It comes at the expense of $491 million worth of Medicare rebates for dental health treatment, which allowed people to claim dental treatment of up to $4250.

The budget also funded previously announced election promises, including:

?$390 million in one-off grants and recurrent funding for medical technology.

?$275 million over five years for GP "super-clinics", five in the Victorian regional areas of Ballan, Bendigo, Berwick, Geelong and Wallan.

? A $249 million National Cancer Plan to improve diagnosis and treatment, including $87 million to expand the bowel cancer screening program.

?$25.6 million over four years for a health check for four-year-olds.

?$53.6 million to tackle binge drinking.

?$85 million to tackle perinatal depression.

AT A GLANCE BUDGET 2008

- $10 billion Health and Hospitals Fund to refurbish decaying hospitals, build new facilities and pay for more medical research.

- $600 million to fund elective surgery in the next three years, as long as the states meet targets on reduced waiting list numbers.

- $275 million for GP super clinics in outer suburban and regional Australia.

- $780 million for dental health programs, to cut public waiting lists and provide check-ups for teenagers.

- $95 million for new university places for nurses.

LIKELY IMPACT

- Expect a scramble from the states for "first dibs" on the fund money, and complaints from states that miss elective surgery cash after failing to improve waiting list numbers.

Mental and dental health are the big losers, as initiatives hide significant cuts.

© 2008 The Age

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