❓ Dr. Hames questions whether the Health Reform Committee's projected savings have been realised. The Minister responds that expenditure outcomes are consistent with approved budget settings, considering specific exclusions.
AnsweredQoN 1551Legislative Assembly
QuestionView source ↗
I refer to the progress report provided to the Minister on the Health Reform Committee dated 27 February 2004 (Ref No. 4-25984) which stated -
“ It is estimated that successful implementation of all of the Committee’s recommendations would result in an average of around two percentage points per annum reduction in the growth in health expenditure over the initial five years to 2007/08.
It is anticipated that the reduced recurrent expenditure growth can be sustained beyond 2007/08. However it should be noted that the financial modelling which underpins the Committee’s costings has focussed more heavily on the first five years of reform, and thus the financial projections for the longer term will need to be reviewed in coming years.”
and ask will the Minister advise as to whether those savings have been realised and if not, why not?
“ It is estimated that successful implementation of all of the Committee’s recommendations would result in an average of around two percentage points per annum reduction in the growth in health expenditure over the initial five years to 2007/08.
It is anticipated that the reduced recurrent expenditure growth can be sustained beyond 2007/08. However it should be noted that the financial modelling which underpins the Committee’s costings has focussed more heavily on the first five years of reform, and thus the financial projections for the longer term will need to be reviewed in coming years.”
and ask will the Minister advise as to whether those savings have been realised and if not, why not?
AnswerView source ↗
Answered
21 November 2006
Responded by
Minister for Health
Response time
35 days
Upon its acceptance of the blueprint for reform recommended by the HRC, the Government endorsed an annual expense growth target for WA Health of 5.5%, consistent with the HRC's estimate of financial benefit of health reform implementation. This target has been incorporated into budget settings for WA Health in 2004-05, 2005-06 and 2006-07. It is important to understand that the Government recognises that components of Health expenditure are outside of the expenditure base to which the 5.5% expense parameter applies. These components are: Commonwealth funding for specific purpose programs, accounting adjustments (eg movement in depreciation and Capital User Charge expenses), funding approved by the Government for specified service expansions and one-off cost pressures (eg Mental Health Strategy, election commitments, settlement of the Health Services Union work value claim), and increases in own sourced revenue. I note that, under these construction parameters, WA Health has delivered expenditure outcomes in 2004-05 and 2005-06 consistent with approved budget settings.
It is important to understand that the Government recognises that components of Health expenditure are outside of the expenditure base to which the 5.5% expense parameter applies. These components are: Commonwealth funding for specific purpose programs, accounting adjustments (eg movement in depreciation and Capital User Charge expenses), funding approved by the Government for specified service expansions and one-off cost pressures (eg Mental Health Strategy, election commitments, settlement of the Health Services Union work value claim), and increases in own sourced revenue. I note that, under these construction parameters, WA Health has delivered expenditure outcomes in 2004-05 and 2005-06 consistent with approved budget settings.
I note that, under these construction parameters, WA Health has delivered expenditure outcomes in 2004-05 and 2005-06 consistent with approved budget settings.
It is important to understand that the Government recognises that components of Health expenditure are outside of the expenditure base to which the 5.5% expense parameter applies. These components are: Commonwealth funding for specific purpose programs, accounting adjustments (eg movement in depreciation and Capital User Charge expenses), funding approved by the Government for specified service expansions and one-off cost pressures (eg Mental Health Strategy, election commitments, settlement of the Health Services Union work value claim), and increases in own sourced revenue. I note that, under these construction parameters, WA Health has delivered expenditure outcomes in 2004-05 and 2005-06 consistent with approved budget settings.
I note that, under these construction parameters, WA Health has delivered expenditure outcomes in 2004-05 and 2005-06 consistent with approved budget settings.
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