Medical equipment plays an important role in delivery of healthcare. Funding requests for the replacement of high-cost capital medical equipment for acute services is considered on an annual basis through submissions made by Health Service’s Chief Executive Officers through the department’s Targeted Equipment Program (TEP).
Under the TEP funding requests are considered for the highest priority high cost replacement equipment according to the prioritisation process that was developed in 2006 as part of the Independent Review of Medical Equipment. The Independent Review is linked to the development of the Medical Equipment Asset Management Framework, which aims to improve the timeliness, accuracy, accountability and transparency in the allocation and expenditure of medical equipment funding for the department and for Health Services.
Prioritised funding submissions for replacement medical equipment items
for acute services was sought from Health Service under the 2007-08
Targeted Equipment Program. It was requested that items put forward
should be those rated as having a combined critical risk level of 1 or
2 according to the Medical Equipment Asset Management Framework
- Medical Equipment Prioritisation Self Assessment Tool. For higher
cost replacement items (greater or equal to $600,000) there was an additional
requirement to complete a business case template in accordance with the
requirements of the Medical Equipment Asset
Management Framework – Medical equipment
business case package.
The following information outlines the prioritisation process that was used as part of the 2007-08 Targeted Equipment Program.
Prioritisation of funding for medical equipment to Metropolitan Health Services will utilise the information gathered on the data collection template - Medical equipment replacement requirements list that was reviewed by the Health Service as having a combined critical risk Level 1 or Level 2.
As Health Services have been provided with the opportunity to correct any potential errors in the classification of the priority levels, or add equipment that may have been omitted, medical equipment will only beeligible for consideration of funding under the 2007-08 Targeted Equipment Program from the Health Service’s highest priority items as identified on the data collection template - Medical equipment replacement requirements list.
For the 2007-08 Targeted Equipment Program priority will be given to replacing owned assets above leased items.
Of the medical equipment items that have been put forward for consideration of funding it will be necessary to identify which items are dependent on enablers: for example, completion of a project; associated infrastructure works (electrical upgrades, plumbing, work to the ceiling, roof or floor); or the replacement equipment to be moved to a different location. If enablers delay the implementation of the installation of the medical equipment in the current financial year, then the medical equipment item may not be eligible for funding in the 2007-08 financial year. Where this is the case, the department and Health Service will need to further discuss the replacement plan.
Funds will not be allocated to “Aggregate” groupings of equipment, but will instead be allocated to the individual equipment item. An “aggregate” grouping of equipment identified will need to be broken down to identify the individual medical equipment item, hospital location, department, asset number / biomedical engineering number (where there are difficulties in identifying this information, discussions with the department are encouraged in order to minimise the work required).
The department will need to approve a business case for upgrade to a “higher technology” replacementitem. For example, a basic fluoroscopy unit will normally be replaced with similar equipment and not be replaced with a Digital Subtraction Angiography unit. If it is considered by the Health Service that the Digital Subtraction Angiography unit must replace the basic fluoroscopy unit, then the Medical Equipment Business Case templates will need to be completed.
A CEO priority sheet will need to be completed by the Health Service and signed by the CEO. The level of information required by the department in relation to the medical equipment item will be kept to a minimum. However, information will still need to be completed on the “like-for-like” replacement item proposed.
For higher cost replacement items (greater than $600,000) there will be an additional requirement to complete a business case template in accordance with the requirements of the Medical equipment Asset Management Framework – Medical equipment business case package.
The following information outlines the conditions of funding that were used as part of the 2007-08 Targeted Equipment Program.
A ‘cap’ of up to $4 million of submissions with a combined critical risk Level 1 or 2, has been placed per health services to limit the work undertaken in the preparation of the individual submissions. This value is not an indication of what your Health Service will receive, but has been put forward to limit the amount of work that Health Services will be undertaking in the application process given the limited pool of funds available for the 2007-08 Targeted Equipment Program.
Only replacement medical equipment items that are in the highest priority levels with a combined critical risk Level 1 or 2, according to the data collection template - Medical equipment replacement requirements list (Excel spreadsheet) will be considered for funding under the 2007-08 Targeted Equipment Program.
Where an item or an aggregate of equipment is equal to, or greater than $600,000, there is an additional requirement to complete the Medical Equipment Asset Management Framework – Medical Equipment Business Case Template and full life cycle costing spreadsheet in order for the equipment to be considered for funding by the Department of Human Services.
Additional (as opposed to replacement) medical equipment items will not be eligible for consideration.
Replacement equipment items proposed must be approved by the Therapeutics Goods Administration (TGA) and comply with Australian Standards.
Medical equipment items that are dependent on enablers (e.g completion of a project; associated infrastructure works) that may delay the implementation of the installation of the medical equipment in the 2007-08 financial year may not be eligible for funding in 2007-08. Where this is potentially the case, the department and Health Service will need to further discuss the replacement plan.
Any beds or lifting equipment put forward for replacement
from the data collection template - Medical equipment replacement
requirements list (Excel spreadsheet) must be consistent
with the principles outlined in the Victorian Nurse Back Injury
Prevention Programto support the prevention of back
injury.
Equipment replacement acquisitions should require no additional recurrent funding from the Department of Human Services.
Funding will not be granted for medical equipment items already purchased, second hand medical equipment, or for payout of leases.
Direct installation costs may be considered for medical equipment items and will need to be clearly differentiated from the item cost. The department will need to agree, in advance of allocations made, what constitutes direct installation and related infrastructure. Where installation costs are requested, a breakdown of what makes up the installation cost will be required.
Funds allocated are made available for the specific medical equipment type and number of items as identified by the department. If savings are made in the purchase of the medical equipment, then funds cannot be used for additional purchase of medical equipment items unless the department has agreed to this in writing.
The department requires confirmation of acquisition of equipment approved and expenditure in the current financial year.
Funds provided must not be used for any purpose other than that for which the specific grant is made.
The medical equipment item that is being replaced must be disposed of, this must be in accordance with appropriate standards and removed from the asset register.
Any medical equipment item granted will need to be placed on the Health Service’s Asset Register and included in future asset management planning.
When claiming for medical equipment items approved by the department, the Health Service will need to provide: a completed capital claims form; tender summary document; copy of the purchase order with a sufficient level of detail to determine what equipment and components of equipment have been purchased (if the purchase order refers to the tender, or other documentation, this information will also need to be provided); and a copy of the invoice.
Health Services will need to inform the department of the expected date of delivery and estimated date of commencement of clinical use of equipment.
The following information outlines the exclusions to funding that was used as part of the 2007-08 Targeted Equipment Program.
Non-medical equipment items, for example “new technology equipment” such as implantable devices, plant, furniture and fittings, information technology equipment, infrastructure items, infrastructure maintenance works, vinyl /carpet repairs or painting are also excluded even if associated with the direct equipment replacement.
Radiotherapy equipment items (such as linear accelerators and Computed Tomography simulators).
As with previous years, Renal Dialysis equipment is not eligible for funding under the Targeted Equipment Program and will need to be considered for funding under the Health Service’s Equipment and Infrastructure Maintenance Grant.
Additionalequipment items (additional to the current base of medical equipment).
Medical Equipment items not having a combined critical risk level of 1 or 2 according to the CEO endorsed data collection template - Medical equipment replacement requirements list.
Funding will not be granted for medical equipment items already purchased, second hand medical equipment, or for payout of medical equipment leases.
Picture Archive Communication Systems (PACS) are not considered for funding under the 2007-08 Targeted Equipment Program – Metropolitan Health Services Allocations. Any general queries related to PACS will need to be directed to the Office of Health Information Systems.
Medical Equipment used by BreastScreen Victoria will not considered for funding under the 2007-08 Targeted Equipment Program - Metropolitan Health Services Allocations but may be considered for funding of Public Health replacement medical equipment. Any submissions will be redirected for consideration.
Public Health Laboratories as part of Statewide Services will not be considered for funding under the 2007-08 Targeted Equipment Program - Metropolitan Health Services Allocations but may be considered for funding of Public Health replacement medical equipment. Any submissions will be redirected for consideration.
Dental Health Services equipment will not be considered for funding under the 2007-08 Targeted Equipment Program - Metropolitan Health Services but may be considered for funding of Dental Health equipment via the program area. Any submissions will be redirected for consideration.
