Breaking news: COAG finalises National Health Reform

It may have taken more than a year’s worth of political bargaining between the states and the Commonwealth but finally the Council of Australian Governments (COAG) has released its long-awaited National Health Reform Agreement.

Earlier today, Prime Minister Julia Gillard announced that she and the heads of all state/territory governments had officially signed off on the final details of the historic agreement.

This means that, should the legislation be approved, the Commonwealth will be directly responsible for the funding, policy, management and delivery of a consistent and unified aged care system which covers basic home care through to residential care.

According to a statement released by Gillard’s office today, “This will enable simplified access to a wider range of care for older people. The reforms also ensure clearer lines of accountability for care of younger people with disabilities and older people requiring care”.

However, until otherwise agreed, this will not be the case in Victoria and Western Australia.

“In these states, basic community care services will continue to be delivered under HACC as a joint Commonwealth-State funded program,” the National Health Reform agreement stated.

“The Commonwealth and these States will maintain bilateral agreements for that purpose. The review to be conducted in 2012 under existing agreements will deal only with business processes. “

The agreement states that in NSW, QLD, Tasmania, ACT and NT, the Commonwealth will be responsible for regulating packaged community and residential aged care delivered under Commonwealth aged care programs; funding packaged community and residential aged care delivered under Commonwealth aged care programs for people aged 65 years and over (50 years and over for Indigenous Australians) and funding and regulating basic community care services for people aged 65 years and over (50 years and over for Indigenous Australians).

It will also fund specialist disability services delivered by the states in accordance with their responsibilities under the National Disability Agreement for people aged 65 years and over (50 years and over for Indigenous Australians).

If the agreement is approved, the Commonwealth will automatically and immediatley assume funding and policy responsibilities (as mentioned above) and specialist disability services delivered by the states according to their responsibilities under the National Disability Agreement for people aged 65 years and over (50 years and over for Indigenous Australians).

From 1 July 2012, the Commonwealth will take on operational responsibility for basic community care services for people aged 65 years and over (50 years and over for Indigenous Australians); and will continue to contribute funding to the states for specialist disability services.

The states will remain responsible for regulating specialist disability services delivered under the National Disability Agreement.

They will continue funding and regulating basic community care services for people under the age of 65 years, except Indigenous Australians aged 50 years and over for whose cost of care will be met by the Commonwealth.

It will fund packaged community and residential aged care delivered under Commonwealth aged care programs for people under the age of 65 years, except for Indigenous Australians aged 50 years and over.

Under the new landmark agreement, other responsibilities will be shared between the Commonwealth and states.

For example, the responsibility of providing a continuity of care across health services, aged care and disability services to ensure smooth client transitions.

“Each level of government will continue to deliver basic community care services for the client groups under its responsibility,” the agreement stated.

“The implementation of the new arrangements for basic community care maintenance and support services will be carefully managed to ensure continuity of care for clients.

“It is expected that basic level community care services will continue to be delivered through a mix of local government, state agency and non-government providers, and that individual providers will continue to be able to deliver both community disability and community aged care services during the implementation period and beyond.”

This new agreement gives effect to the commitment made by COAG on 13 February 2011, and in doing so, supersedes the National Health and Hospitals Network Agreement and the Heads of Agreement on National Health Reform.

Under the National Health Reform Agreement, the Commonwealth will also provide an extra $16.4 billion, through to 2019-20, for public hospitals.

This extra Commonwealth funding aims to enable hospitals to take on millions of extra services including: 2.9 million extra cases in our emergency departments; 2 million additional in-patient services, such as major surgery or treatment for severe conditions such as kidney failure or a heart attack; and 19 million more outpatient consultations, such as minor surgery or physiotherapy.

New Medicare Locals will also support the day-to-day delivery of better integrated GP and primary health care services in the community ensuring more patients get the care that they need in the right settings.

COAG is the peak intergovernmental forum in Australia, comprising the Prime Minister, State Premiers, Territory Chief Ministers and the President of the Australian Local Government Association (ALGA).