Medical Equipment Replacement Program

Medical Equipment Funding in 2007 - 08
2007-08 Targeted Equipment Program
Independent Review of Medical Equipment
Medical Equipment Prioritisation Self Assessment Package
Medical Equipment Business Case Package

Medical Equipment Funding in 2007 - 08

Funding of $145 million for the Medical Equipment Replacement Program has been provided over four years from the May 2007 State Budget to enable Health Services to replace critical high cost acute medical equipment items across the public health system with the highest critical risk as identified by the Independent Review of Medical Equipment.  Medical Equipment that is additional, or linked to expansion of service, is not eligible for funding.

$40 million is allocated in 2007-08.

2007-08 Targeted Equipment Program

Prioritised funding submissions for replacement medical equipment items for acute services was sought from Health Service under the 2007-08 Targeted Equipment Program.

Independent Review of Medical Equipment

An Independent Review of Medical Equipment was undertaken in 2006 that informed the Department of Human Services (the department) on the high priority replacement requirements of capital medical equipment using a risk-based approach.

The Independent Review of Medical Equipment is part of the Medical Equipment Asset Management Framework (MEAMF) project, which is being developed as a response to Health Services’ requests for guidance in understanding government requirements in relation to asset management of medical equipment.  The development of the Framework will align with relevant government policies and work that has previously been undertaken in the area of medical equipment (for example, the Auditor-General Victoria’s report and the Victorian Healthcare Association report). 

Independent Review of Medical Equipment - Stage One Overview

Stage One of the Independent Review of Medical Equipment was undertaken with a sample of seven Health Services  (four metropolitan and three major regional Health Services) to provide an assessment of replacement requirements for 2006-07 for the sample Health Services. The sample data was extrapolated to provide an estimate of total requirements across the State.

Independent Review of Medical Equipment - Stage Two Overview

Stage Two of the Independent Review of Medical Equipment completed the Independent Review of Medical Equipment replacement requirements across all metropolitan and major regional Health Services for equipment requiring replacement by 2007.   Northeast Health Wangaratta was also included as an example of a Rural Health Service.  Stage Two of the Independent Review facilitated a shared and clear understanding of the priorities for medical equipment replacement requirements based upon reducing the level of risk to patients, staff and to service availability, with Health Services and the Department of Human Services.

The data from the Independent Review of Medical Equipment was used in the development of the business cases for the 2006-07 and 2007-08 State Government budget process.

Future Updates of the Independent Review of Medical Equipment

It is expected that an Independent Review of Medical Equipment will be undertaken regularly to update the list of replacement requirements in metropolitan, regional, sub-regional and   local area health services.  The Medical Equipment Prioritisation Self Assessment Package complements the Independent Review of Medical Equipment process and represents the initial stage of developing policies, processes and templates to enable Health Services to self-assess their priority replacement requirements utilising a risk-based approach.  Information related to this package follows.

Medical Equipment Prioritisation Self Assessment Package

As part of the Medical Equipment Asset Management Framework a Medical Equipment Prioritisation Self Assessment Package (MEPSAP) has been developed as a standardised risk-based approach to the prioritisation of medical equipment. The MEPSAP builds on the process used for the Independent Review of Medical Equipment.
The MEPSAP comprises the following:

• policy guidelines;
• instructions; and
• a data collection template (Microsoft® Excel spreadsheet) for updating the Medical Equipment Replacement Requirements List.

Utilisation of Information

The adoption of a standardised and consistent risk based approach to prioritisation of medical equipment through the process developed as part of the Independent Review:

• Supports a more timely allocation of Medical Equipment Program funds from the Department to Health Services;
• Enables greater transparency in the allocation and prioritisation of medical equipment;
• Improves quality and safety of healthcare for Victorians in public Health Services; and
• Provides a system wide understanding of medical equipment requirements.

The Medical Equipment Self Assessment Prioritisation Took that is part of the MEPSAP adopts a risk-based process for the prioritisation of items on the Medical Equipment Replacement Requirements list.  The priority level generated is based on the combined three Critical Risk Areas:

• Clinical risk;
• Occupational health and safety risk; and
• Risk to service availability.

The MEPSAP will enable Health Services to maintain and update a listing of medical equipment replacement requirements for items of medical equipment with a replacement value of greater than $50,000.  For items less than $50,000, aggregates and systems of equipment may be considered for inclusion.

Pre-requisites

The update of the Medical Equipment Replacement Requirements List in accordance with the policies, instructions and data collection template in the MEPSAP was a prerequisite for consideration for funding through the 2007 - 08 Targeted Equipment Program.

Medical equipment prioritisation and self-assessment package - September 2007

Medical Equipment Business Case Package

The Medical Equipment Business Case Package is an element of the Medical Equipment Asset Management Framework (MEAMF), which aims to provide an improved management platform to support Health Services meet their healthcare delivery objectives effectively and sustaining Victoria’s Public Hospital medical equipment asset base.

The Medical Equipment Business Case Package outlines policies, provides associated guidelines and templates that can be utilised to assist Health Services develop business cases for the acquisition of replacement and new medical equipment. This is the first version of the Medical Equipment Business Case Package and has been endorsed by the MEAMF Steering Committee.  It should be noted that future revisions will occur following evaluation of the MEPSAP. 

The Medical Equipment Business Case Template has been developed to assist Health Services in preparing a business case for the acquisition of medical equipment.  It is intended to be a guide to the extent and type of information that should be presented in developing a business case.  Health Services may find it necessary to amend or augment the template with additional information where necessary to support the business case.

The Medical Equipment Business Case Package is structured into the following three components:

• Section A: Business Case Guidelines
• Section B: Full Life Cycle Costing
• Section C: Business Case Template

Pre-requisite
Completion of the Medical Equipment Asset Management Framework - Medical Equipment Business Case Template and Full Life Cycle Costing template in accordance with the policies, instructions and data collection template was a prerequisite for consideration for funding through the 2007-2008 Targeted Equipment Program,  where equipment, or an aggregate of equipment was greater than $600,000.

Medical equipment business case package September 2007 - (PDF File 260 KB)

Please note that the Medical Equipment Business Case Package will be updated on an ongoing basis.

• requesting capital funding for replacement equipment (individual items, aggregates or systems) with  a value equal to or in excess of $600,000;
• seeking permission for leasing (see note in the box below) of medical equipment;
• requesting capital funding for additional (versus replacement) equipment with a value in excess of  $100,000; or
• as requested by the Department.

It is acknowledged that the decision-making process on medical equipment needs may occur separate from any funding opportunities or calls for funding submissions.  The process of asset planning and identification of equipment needs enables the development of priority equipment needs.  These priorities should be regularly reviewed and may need to be updated to reflect, for example, impacts from changes in technology, service delivery methods, and/or the cost of equipment.

Please note when seeking funds from the department for medical equipment the usual submission based processes according to the respective guidelines will need to be adhered to in relation to funding rounds. 

Contacts:

Medical Equipment Asset Management Framework: Joanne Burns, tel: (03) 9096 2644

Rural: Graeme Sheers, tel: (03) 9096 1421

Medical Equipment Program: Teresa Lodder, tel (03) 9096 2109