❓ Hon Giz Watson questions the appropriateness of a 5.5% annual increase in WA health spending, given the state's historically low per capita expenditure and ongoing health reforms. Hon Sue Ellery responds by clarifying the scope of the 5.5% target and citing data indicating WA's health spending is above the national average in some areas.
AnsweredQoN 262Legislative Council
QuestionView source ↗
HEALTH SPENDING
(1) Does the government believe that the 5.5 per cent increase in health spending per annum is appropriate given that Western Australia has one of the lowest spends on health per capita of any state? (2) Given the major program of reform, how does this lower level of increase compared with other states allow the state to maintain capacity during major restructuring? Hon SUE ELLERY
(1) Does the government believe that the 5.5 per cent increase in health spending per annum is appropriate given that Western Australia has one of the lowest spends on health per capita of any state? (2) Given the major program of reform, how does this lower level of increase compared with other states allow the state to maintain capacity during major restructuring? Hon SUE ELLERY
AnswerView source ↗
I thank the member for some notice of this question. (1)-(2) An annual health expense growth of 5.5 per cent was a target adopted by the government following the recommendations of the report of the Health Reform Committee in March 2004. It is important to recognise that the 5.5 per cent expense growth does not apply to gross health expenditure. The 5.5 per cent expense growth target applies to base expenditure, which excludes accounting movements such as depreciation and capital user charges; commonwealth revenue for special purpose programs that are either wholly or partly funded by the commonwealth government; funding for specific policy decisions of government such as the mental health strategy and election commitments; and additional own-sourced revenue generated by health services. The target reflects the government’s assessment of a financially sustainable health system. The target is linked to health reform implementation, including demand management activities, better integration of service delivery with the primary care sector and a realignment of hospital service delivery between tertiary and general hospitals. The operational plan for 2006-07 released by the Minister for Health on 3 May 2006 details the targets for achieving cost efficiencies and generating additional revenue, which will contribute towards delivering the government’s expense growth of 5.5 per cent in 2006-07. It should be noted that an interstate comparison is presented in the Commonwealth Grants Commission publication titled “Relative Fiscal Capacities of the States”. The 2006 report is the latest report, and presents data on expenditures in 2004-05. The commission’s data show that in 2004-05 Western Australia’s actual per capita expenditure on inpatient, non-inpatient, community health, population and preventive health measures combined totalled $1 419 a person, which is 6.8 per cent higher than the national average expenditure of $1 329 a person. The commission’s data indicates that the per capita expenditure on hospital inpatient services in 2004-05 was 4.4 per cent below the national average. However, Western Australian per capita expenditure on non-inpatient and community services was 21.7 per cent higher than the national average, while Western Australian per capita expenditure on population and preventive health measures was 48.9 per cent higher than the national average.
(2) Given the major program of reform, how does this lower level of increase compared with other states allow the state to maintain capacity during major restructuring? Hon SUE ELLERY replied: I thank the member for some notice of this question. (1)-(2) An annual health expense growth of 5.5 per cent was a target adopted by the government following the recommendations of the report of the Health Reform Committee in March 2004. It is important to recognise that the 5.5 per cent expense growth does not apply to gross health expenditure. The 5.5 per cent expense growth target applies to base expenditure, which excludes accounting movements such as depreciation and capital user charges; commonwealth revenue for special purpose programs that are either wholly or partly funded by the commonwealth government; funding for specific policy decisions of government such as the mental health strategy and election commitments; and additional own-sourced revenue generated by health services. The target reflects the government’s assessment of a financially sustainable health system. The target is linked to health reform implementation, including demand management activities, better integration of service delivery with the primary care sector and a realignment of hospital service delivery between tertiary and general hospitals. The operational plan for 2006-07 released by the Minister for Health on 3 May 2006 details the targets for achieving cost efficiencies and generating additional revenue, which will contribute towards delivering the government’s expense growth of 5.5 per cent in 2006-07. It should be noted that an interstate comparison is presented in the Commonwealth Grants Commission publication titled “Relative Fiscal Capacities of the States”. The 2006 report is the latest report, and presents data on expenditures in 2004-05. The commission’s data show that in 2004-05 Western Australia’s actual per capita expenditure on inpatient, non-inpatient, community health, population and preventive health measures combined totalled $1 419 a person, which is 6.8 per cent higher than the national average expenditure of $1 329 a person. The commission’s data indicates that the per capita expenditure on hospital inpatient services in 2004-05 was 4.4 per cent below the national average. However, Western Australian per capita expenditure on non-inpatient and community services was 21.7 per cent higher than the national average, while Western Australian per capita expenditure on population and preventive health measures was 48.9 per cent higher than the national average.
Hon SUE ELLERY replied: I thank the member for some notice of this question. (1)-(2) An annual health expense growth of 5.5 per cent was a target adopted by the government following the recommendations of the report of the Health Reform Committee in March 2004. It is important to recognise that the 5.5 per cent expense growth does not apply to gross health expenditure. The 5.5 per cent expense growth target applies to base expenditure, which excludes accounting movements such as depreciation and capital user charges; commonwealth revenue for special purpose programs that are either wholly or partly funded by the commonwealth government; funding for specific policy decisions of government such as the mental health strategy and election commitments; and additional own-sourced revenue generated by health services. The target reflects the government’s assessment of a financially sustainable health system. The target is linked to health reform implementation, including demand management activities, better integration of service delivery with the primary care sector and a realignment of hospital service delivery between tertiary and general hospitals. The operational plan for 2006-07 released by the Minister for Health on 3 May 2006 details the targets for achieving cost efficiencies and generating additional revenue, which will contribute towards delivering the government’s expense growth of 5.5 per cent in 2006-07. It should be noted that an interstate comparison is presented in the Commonwealth Grants Commission publication titled “Relative Fiscal Capacities of the States”. The 2006 report is the latest report, and presents data on expenditures in 2004-05. The commission’s data show that in 2004-05 Western Australia’s actual per capita expenditure on inpatient, non-inpatient, community health, population and preventive health measures combined totalled $1 419 a person, which is 6.8 per cent higher than the national average expenditure of $1 329 a person. The commission’s data indicates that the per capita expenditure on hospital inpatient services in 2004-05 was 4.4 per cent below the national average. However, Western Australian per capita expenditure on non-inpatient and community services was 21.7 per cent higher than the national average, while Western Australian per capita expenditure on population and preventive health measures was 48.9 per cent higher than the national average.
I thank the member for some notice of this question. (1)-(2) An annual health expense growth of 5.5 per cent was a target adopted by the government following the recommendations of the report of the Health Reform Committee in March 2004. It is important to recognise that the 5.5 per cent expense growth does not apply to gross health expenditure. The 5.5 per cent expense growth target applies to base expenditure, which excludes accounting movements such as depreciation and capital user charges; commonwealth revenue for special purpose programs that are either wholly or partly funded by the commonwealth government; funding for specific policy decisions of government such as the mental health strategy and election commitments; and additional own-sourced revenue generated by health services. The target reflects the government’s assessment of a financially sustainable health system. The target is linked to health reform implementation, including demand management activities, better integration of service delivery with the primary care sector and a realignment of hospital service delivery between tertiary and general hospitals. The operational plan for 2006-07 released by the Minister for Health on 3 May 2006 details the targets for achieving cost efficiencies and generating additional revenue, which will contribute towards delivering the government’s expense growth of 5.5 per cent in 2006-07. It should be noted that an interstate comparison is presented in the Commonwealth Grants Commission publication titled “Relative Fiscal Capacities of the States”. The 2006 report is the latest report, and presents data on expenditures in 2004-05. The commission’s data show that in 2004-05 Western Australia’s actual per capita expenditure on inpatient, non-inpatient, community health, population and preventive health measures combined totalled $1 419 a person, which is 6.8 per cent higher than the national average expenditure of $1 329 a person. The commission’s data indicates that the per capita expenditure on hospital inpatient services in 2004-05 was 4.4 per cent below the national average. However, Western Australian per capita expenditure on non-inpatient and community services was 21.7 per cent higher than the national average, while Western Australian per capita expenditure on population and preventive health measures was 48.9 per cent higher than the national average.
(1)-(2) An annual health expense growth of 5.5 per cent was a target adopted by the government following the recommendations of the report of the Health Reform Committee in March 2004. It is important to recognise that the 5.5 per cent expense growth does not apply to gross health expenditure. The 5.5 per cent expense growth target applies to base expenditure, which excludes accounting movements such as depreciation and capital user charges; commonwealth revenue for special purpose programs that are either wholly or partly funded by the commonwealth government; funding for specific policy decisions of government such as the mental health strategy and election commitments; and additional own-sourced revenue generated by health services. The target reflects the government’s assessment of a financially sustainable health system. The target is linked to health reform implementation, including demand management activities, better integration of service delivery with the primary care sector and a realignment of hospital service delivery between tertiary and general hospitals. The operational plan for 2006-07 released by the Minister for Health on 3 May 2006 details the targets for achieving cost efficiencies and generating additional revenue, which will contribute towards delivering the government’s expense growth of 5.5 per cent in 2006-07. It should be noted that an interstate comparison is presented in the Commonwealth Grants Commission publication titled “Relative Fiscal Capacities of the States”. The 2006 report is the latest report, and presents data on expenditures in 2004-05. The commission’s data show that in 2004-05 Western Australia’s actual per capita expenditure on inpatient, non-inpatient, community health, population and preventive health measures combined totalled $1 419 a person, which is 6.8 per cent higher than the national average expenditure of $1 329 a person. The commission’s data indicates that the per capita expenditure on hospital inpatient services in 2004-05 was 4.4 per cent below the national average. However, Western Australian per capita expenditure on non-inpatient and community services was 21.7 per cent higher than the national average, while Western Australian per capita expenditure on population and preventive health measures was 48.9 per cent higher than the national average.
(2) Given the major program of reform, how does this lower level of increase compared with other states allow the state to maintain capacity during major restructuring? Hon SUE ELLERY replied: I thank the member for some notice of this question. (1)-(2) An annual health expense growth of 5.5 per cent was a target adopted by the government following the recommendations of the report of the Health Reform Committee in March 2004. It is important to recognise that the 5.5 per cent expense growth does not apply to gross health expenditure. The 5.5 per cent expense growth target applies to base expenditure, which excludes accounting movements such as depreciation and capital user charges; commonwealth revenue for special purpose programs that are either wholly or partly funded by the commonwealth government; funding for specific policy decisions of government such as the mental health strategy and election commitments; and additional own-sourced revenue generated by health services. The target reflects the government’s assessment of a financially sustainable health system. The target is linked to health reform implementation, including demand management activities, better integration of service delivery with the primary care sector and a realignment of hospital service delivery between tertiary and general hospitals. The operational plan for 2006-07 released by the Minister for Health on 3 May 2006 details the targets for achieving cost efficiencies and generating additional revenue, which will contribute towards delivering the government’s expense growth of 5.5 per cent in 2006-07. It should be noted that an interstate comparison is presented in the Commonwealth Grants Commission publication titled “Relative Fiscal Capacities of the States”. The 2006 report is the latest report, and presents data on expenditures in 2004-05. The commission’s data show that in 2004-05 Western Australia’s actual per capita expenditure on inpatient, non-inpatient, community health, population and preventive health measures combined totalled $1 419 a person, which is 6.8 per cent higher than the national average expenditure of $1 329 a person. The commission’s data indicates that the per capita expenditure on hospital inpatient services in 2004-05 was 4.4 per cent below the national average. However, Western Australian per capita expenditure on non-inpatient and community services was 21.7 per cent higher than the national average, while Western Australian per capita expenditure on population and preventive health measures was 48.9 per cent higher than the national average.
Hon SUE ELLERY replied: I thank the member for some notice of this question. (1)-(2) An annual health expense growth of 5.5 per cent was a target adopted by the government following the recommendations of the report of the Health Reform Committee in March 2004. It is important to recognise that the 5.5 per cent expense growth does not apply to gross health expenditure. The 5.5 per cent expense growth target applies to base expenditure, which excludes accounting movements such as depreciation and capital user charges; commonwealth revenue for special purpose programs that are either wholly or partly funded by the commonwealth government; funding for specific policy decisions of government such as the mental health strategy and election commitments; and additional own-sourced revenue generated by health services. The target reflects the government’s assessment of a financially sustainable health system. The target is linked to health reform implementation, including demand management activities, better integration of service delivery with the primary care sector and a realignment of hospital service delivery between tertiary and general hospitals. The operational plan for 2006-07 released by the Minister for Health on 3 May 2006 details the targets for achieving cost efficiencies and generating additional revenue, which will contribute towards delivering the government’s expense growth of 5.5 per cent in 2006-07. It should be noted that an interstate comparison is presented in the Commonwealth Grants Commission publication titled “Relative Fiscal Capacities of the States”. The 2006 report is the latest report, and presents data on expenditures in 2004-05. The commission’s data show that in 2004-05 Western Australia’s actual per capita expenditure on inpatient, non-inpatient, community health, population and preventive health measures combined totalled $1 419 a person, which is 6.8 per cent higher than the national average expenditure of $1 329 a person. The commission’s data indicates that the per capita expenditure on hospital inpatient services in 2004-05 was 4.4 per cent below the national average. However, Western Australian per capita expenditure on non-inpatient and community services was 21.7 per cent higher than the national average, while Western Australian per capita expenditure on population and preventive health measures was 48.9 per cent higher than the national average.
I thank the member for some notice of this question. (1)-(2) An annual health expense growth of 5.5 per cent was a target adopted by the government following the recommendations of the report of the Health Reform Committee in March 2004. It is important to recognise that the 5.5 per cent expense growth does not apply to gross health expenditure. The 5.5 per cent expense growth target applies to base expenditure, which excludes accounting movements such as depreciation and capital user charges; commonwealth revenue for special purpose programs that are either wholly or partly funded by the commonwealth government; funding for specific policy decisions of government such as the mental health strategy and election commitments; and additional own-sourced revenue generated by health services. The target reflects the government’s assessment of a financially sustainable health system. The target is linked to health reform implementation, including demand management activities, better integration of service delivery with the primary care sector and a realignment of hospital service delivery between tertiary and general hospitals. The operational plan for 2006-07 released by the Minister for Health on 3 May 2006 details the targets for achieving cost efficiencies and generating additional revenue, which will contribute towards delivering the government’s expense growth of 5.5 per cent in 2006-07. It should be noted that an interstate comparison is presented in the Commonwealth Grants Commission publication titled “Relative Fiscal Capacities of the States”. The 2006 report is the latest report, and presents data on expenditures in 2004-05. The commission’s data show that in 2004-05 Western Australia’s actual per capita expenditure on inpatient, non-inpatient, community health, population and preventive health measures combined totalled $1 419 a person, which is 6.8 per cent higher than the national average expenditure of $1 329 a person. The commission’s data indicates that the per capita expenditure on hospital inpatient services in 2004-05 was 4.4 per cent below the national average. However, Western Australian per capita expenditure on non-inpatient and community services was 21.7 per cent higher than the national average, while Western Australian per capita expenditure on population and preventive health measures was 48.9 per cent higher than the national average.
(1)-(2) An annual health expense growth of 5.5 per cent was a target adopted by the government following the recommendations of the report of the Health Reform Committee in March 2004. It is important to recognise that the 5.5 per cent expense growth does not apply to gross health expenditure. The 5.5 per cent expense growth target applies to base expenditure, which excludes accounting movements such as depreciation and capital user charges; commonwealth revenue for special purpose programs that are either wholly or partly funded by the commonwealth government; funding for specific policy decisions of government such as the mental health strategy and election commitments; and additional own-sourced revenue generated by health services. The target reflects the government’s assessment of a financially sustainable health system. The target is linked to health reform implementation, including demand management activities, better integration of service delivery with the primary care sector and a realignment of hospital service delivery between tertiary and general hospitals. The operational plan for 2006-07 released by the Minister for Health on 3 May 2006 details the targets for achieving cost efficiencies and generating additional revenue, which will contribute towards delivering the government’s expense growth of 5.5 per cent in 2006-07. It should be noted that an interstate comparison is presented in the Commonwealth Grants Commission publication titled “Relative Fiscal Capacities of the States”. The 2006 report is the latest report, and presents data on expenditures in 2004-05. The commission’s data show that in 2004-05 Western Australia’s actual per capita expenditure on inpatient, non-inpatient, community health, population and preventive health measures combined totalled $1 419 a person, which is 6.8 per cent higher than the national average expenditure of $1 329 a person. The commission’s data indicates that the per capita expenditure on hospital inpatient services in 2004-05 was 4.4 per cent below the national average. However, Western Australian per capita expenditure on non-inpatient and community services was 21.7 per cent higher than the national average, while Western Australian per capita expenditure on population and preventive health measures was 48.9 per cent higher than the national average.
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