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Funding
Victorian Ambulatory Classification and Funding System (VACS)
The Victorian Ambulatory Classification and Funding System (VACS) is an outpatient classification and monitoring system used in VACS-funded hospitals.
The Funding and Information Policy Branch of the department provides detailed information about the VACS funding model.
- For key information see Victorian Ambulatory Classification and Funding System (VACS) Frequently Asked Questions.
VACS is based on clinical specialties. In 2011-12 there are 47 clinical categories representing medical, surgical and allied health specialties.
Most (35) of these categories are assigned a cost weight which is listed in the following document:
Victorian Ambulatory Classification System - cost weights 2011-12
The remaining 12 categories representing allied health and emergency medicine are unweighted.
Victorian health policy and funding guidelines
The objectives of the Victorian Health Policy and Funding Guidelines 2011-12 are to:
- outline the policy and service delivery objectives for organisations contracted by the department to provide health services to the Victorian population
- detail the conditions of funding and key accountability requirements that funded organisations must comply with in addition to their contractual and statutory obligations, and
- provide an overview of the new initiatives and health budget for 2011–12.
See Victorian Health Policy and Funding Guidelines 2011-12
The following sections of the Guidelines are particularly relevant to Specialist Clinics:
Victorian Ambulatory Classification and Funding System VACS - targets 2011-12
Victorian Ambulatory Classification System - cost weights 2011-12
Victorian Health Policy and Funding Guidelines - Part 2: Health operations - Section 5 contains the price tables for acute services 2011-12.
National Health Reform – Activity Based Funding (ABF)
As part of the National Health Reform Agreement, the Australian health care system is transitioning to a national method of activity based funding (ABF) for admitted and non-admitted hospital services.
ABF funding for specialist outpatient clinics on a proxy basis commences on 1 July 2012 in most Victorian health services. Small rural health services will continue to be block funded from this date.
ABF implementation for non-admitted subacute and mental health services will commence on 1 July 2013.
Interim ABF Classification System
The proxy ABF classification system is the National Health Cost Data Collection (NHCDC) Tier 2 Classification System ('Tier 2').
The classification system allocates all specialist outpatient activity into categories for funding. The classification system has a flat structure and is based on four groups:
- medical procedure clinics
- medical consultation clinics
- stand-alone clinics
- allied health or clinical nurse specialist intervention clinics.
Tier 2 Outpatient Clinic Definitions - released 28 October 2011.
The classification system and category definitions will continue to evolve with input from stakeholders. Sub-acute and mental health categories are yet to be included.
ABF Implementation for Specialist Outpatient Clinics
In Victoria, the department is working in partnership with each health service's nominated ABF representative to facilitate the transition to the national ABF model.
Stakeholders are welcome to make contact with the department concerning any issues or questions they may have. Please contact:
Simon Moy
Project Manager, ABF Implementation - Outpatients
Funding System Development
Funding & Information Policy Branch
Hospital and Health Service Performance Division
Department of Health
Phone: (03) 9096 0879 or email: Simon.Moy@health.vic.gov.au
Annette Gilchrist
Project Officer
Funding System Development
Funding & Information Policy Branch
Hospital and Health Service Performance Division
Department of Health
Phone: (03) 9096 7897 or email: Annette.Gilchrist@health.vic.gov.au
