❓ Mr. Cook questions the WA Health Agency Expenditure Review (AER), its scope, execution, cost, and anticipated savings. The response details the AER's progress, scope (excluding hospitals), internal management, and funding, indicating savings will be reinvested in frontline services.
AnsweredQoN 5717Legislative Assembly
QuestionView source ↗
I refer to Budget Paper 2, Volume 1, Division 30, under the sub heading, savings measures, 'Agency Expenditure Review' (AER) and ask: (a) when is the AER of WA Health occurring, and when will it be completed; (b) is all of WA Health subject to the AER review, or are there some parts of the agency exempt (I understand hospitals are exempt, is this the only exemption); (c) who is undertaking, or has undertaken the review eg. is it being done internally, or externally; (d) if it is being undertaken externally, is it being undertaken by another Government Agency, such as the Auditor General or Treasury, etc or has it been contracted out to a private company; (e) if it has been contracted out, to whom, and what is the cost of the AER of WA Health; and (f) where does the Government anticipate it will find the savings of $148.2m identified over the forward estimates period?
AnswerView source ↗
Answered
20 September 2016
Responded by
Minister for Health
Response time
35 days
(a) The Agency Expenditure Review (AER) process has commenced and its recommendations will be considered by Government as part of the 2017-18 Budget process.
(b) Only non-hospital services provided by WA Health are within the scope of the AER. Hospital services are exempt. The WA Health savings target is $148.3 million for the three years to 2019-20, with all savings achieved to be reinvested into frontline health service delivery.
(c) The AER is being undertaken internally under the guidance of a Project Board. The Project Board comprises of Mr David Tune (Independent Chair), the Director General of the Department of Health, the Under Treasurer, the CEO of the Insurance Commission of Western Australia, and senior executives from the Public Sector Commission and the Department of the Premier and Cabinet.
(d-e) The cost of engaging Mr Tune in 2016-17 for the WA Health AER is being met by the Department of Treasury.
(f) Savings will be identified from within WA Health’s non-hospital services. Savings measures will ensure that programs delivered by WA Health align with Government priorities and the needs of the WA community.
(b) Only non-hospital services provided by WA Health are within the scope of the AER. Hospital services are exempt. The WA Health savings target is $148.3 million for the three years to 2019-20, with all savings achieved to be reinvested into frontline health service delivery.
(c) The AER is being undertaken internally under the guidance of a Project Board. The Project Board comprises of Mr David Tune (Independent Chair), the Director General of the Department of Health, the Under Treasurer, the CEO of the Insurance Commission of Western Australia, and senior executives from the Public Sector Commission and the Department of the Premier and Cabinet.
(d-e) The cost of engaging Mr Tune in 2016-17 for the WA Health AER is being met by the Department of Treasury.
(f) Savings will be identified from within WA Health’s non-hospital services. Savings measures will ensure that programs delivered by WA Health align with Government priorities and the needs of the WA community.
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