Northern Territory Second Reading Speeches

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NATIONAL HEALTH FUNDING POOL AND ADMINISTRATION (NATIONAL UNIFORM LEGISLATION) BILL 2012

Mr VATSKALIS (Health): Madam Speaker, I move that the bill be now read a second time.

At the August 2011 Council of Australian Governments meeting, the Chief Minister signed the National Health Reform Agreement which initiated fundamental reform to the national health system. The bill before the house today implements a key element of the National Health Reform Agreement. It puts in place the national legislative framework for the funding of public hospitals in the Territory which is to commence from 1 July 2012.


Importantly, the new funding arrangements would provide for greater transparency and accountability of public hospital funding. There will be a clear line of sight of Commonwealth and Territory government funding contributions to Territory hospitals.


In addition, the new funding arrangements will drive efficiencies within the hospital network while ensuring that Territorians continue to receive the appropriate level of care.


In summary, the bill will provide for:


·
the establishment of a National Health Funding Pool for public hospitals;
· the appointment of an administrator to monitor and report on the operations of the National Health Funding Pool;
· the establishment of the Territory’s State Pool Account with the Reserve Bank of Australia; and
· the establishment of the Territory’s State Managed Fund.

In order to establish a national system for the funding of public hospitals, the Commonwealth and each state and territory government are enacting common legislation. The bill before the House today implements the Territory’s commitment to the new national arrangements.


I will now address the bill in more detail.


Madam Speaker, a key feature of the bill is the National Health Funding Pool. The national pool comprises individual state and territory accounts, referred to as state pool accounts, held with the Reserve Bank of Australia.


Accordingly, the bill before the House today provides for the establishment of the Territory’s pool account with the Reserve Bank. The Territory’s pool account will receive all Commonwealth health reform related funding, as well as the Territory government’s share of activity-based funding for public hospitals. This will ensure Commonwealth of Territory contributions to public hospital funding can be clearly identified and reported on.


Importantly, I, as Minister for Health, will have control of how all funding in the Territory’s pool account is disbursed throughout the Territory’s public hospitals. This recognises that, under the National Health Reform Agreement, the Territory retains the role of manager and planner over the public hospital system.


The bill also provides for the appointment of an administrator of the National Health Funding Pool. The administrator will be an independent statutory officer appointed by unanimous agreement of Commonwealth and state Health ministers. The primary function of the administrator is to monitor and report on Commonwealth and state funding paid into, and from each state’s pool accounts and state-managed funds. The administrator, under direction from me or my delegate, will also be responsible for dispersing funding to the Territory’s hospital networks or to the Department of Health. The administrator will also calculate and advise the Commonwealth Treasurer of the Commonwealth government’s share of public hospital funding to be paid into the state pool accounts, in accordance with the provisions of the National Health Reform Agreement.


The bill also establishes the Territory’s state-managed fund. The fund will fall under the auspices of the Department of Health. The state-managed Fund will receive all Commonwealth and Territory government block funding for public hospitals, as well as funding for teaching, training, and research within the hospital system.


The introduction of this bill upholds the Territory’s commitment to COAG’s National Health Reform Agreement. The new funding arrangements will provide greater transparency, accountability, and efficiency in the hospital system.


Madam Speaker, I command the bill to honourable members, and table a copy of the explanatory statement to accompany this bill.


Debate adjourned.


 


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