Better planning & funds allocation in HACC

Page content: Final report | Reforms for 2003-04 | Ministerial Priorities 2003-06

Final report

In March 2003, the Minister for Aged Care announced Better planning and funds allocation for HACC in Victoria - Final Report 2003 (115kb, pdf)

The Department responded to calls from the sector to:

• Simplify the HACC funding round
• Eliminate unnecessary form filling
• Introduce a transparent planning and funding allocation process
• Distribute indexation and minor capital funds fairly.

The reforms are an integral part of the Government’s broader partnership strategy with local government, public health services and funded agencies to reduce the administrative burden on providers and provide greater security and certainty to the service system.

Reforms implemented in 2003-04

After extensive consultation the following reforms were implemented in 2003-04:

• Focussed Ministerial Priorities for HACC growth funds
  The priorities for 2003-06 focus growth funding where the demands are greatest – in-home support and health care. The priorities are evidence based and were developed in consultation with the sector.

• Consistent three year planning
  Instead of planning growth funding for one year, there is a three-year planning horizon. In addition, consistent planning methods have been introduced across all regions, including a formula to guide intra-regional funds equalisation. Regional plans have been developed in consultation with the sector and document the rationale for all planning and funds allocation decisions.

• More diverse means of funds allocation
  Instead of allocating all growth funds through a submission process, funds will be distributed directly to agencies, or via invited or advertised submissions as appropriate.

• Automatic allocation of minor capital
  All agencies will automatically receive an annual minor capital allocation via a formula. This will give agencies greater certainty and abolish the submission process for minor capital.

• More focussed research and development program
  The HACC research agenda in 2003-04 will be targeted at service evaluation, service development initiatives and practice-relevant research.

The changes have been well accepted by the HACC sector which has welcomed targeted priorities for growth funding, transparent decision making processes, greater funds certainty and fewer submissions (none for minor capital).

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Ministerial Priorities 2003-06

As part of the Better planning and funds allocation for HACC in Victoria - Final Report 2003 (115kb, pdf) the State Minister endorsed a strategic framework for 2003-06 to guide the allocation of HACC growth funds.

The framework differs from Ministerial priorities in earlier years in that it:

• Has a three year rather than one year outlook
• Has drawn wherever possible on demographic and service system evidence
• Explains the relationship between priorities for growth funds, and the strategic directions overall for HACC
• Has had the benefit of stakeholder input through the Departmental Advisory Committee on HACC.

For regional planning purposes, the key elements of the framework are as follows:

• Priority 1 – Increase the supply and improve the responsiveness of ‘HACC Basic’ services and consolidate the ‘HACC Basic’ service system around the key local government and health sector providers.
  
  HACC Basic activities are Home Care, Personal Care, Nursing, Allied Health, Delivered Meals, Property Maintenance, and Assessment and Care Management.

• Priority 2 - Increase the quantity and quality of ‘HACC Basic’ services for people from culturally and linguistically diverse (CALD) backgrounds and develop new collaborative direct service delivery arrangements between mainstream, multi-cultural and ethno-specific organisations.

• Priority 3 - Increase the quantity and quality of HACC services for Aboriginal and Torres Strait Islander (ATSI) communities.

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