Radiotherapy Services in Victoria

Funding for Hospitals

The Department of Human Services funds admitted and non-admitted patient services provided by public hospitals. Admitted patients are funded under the casemix system and non-admitted patients are funded under the Non-Admitted Patient Radiotherapy Program. Hospitals funded under the Non-Admitted Patient Radiotherapy Program are:

• The Alfred
• Austin Health
• Geelong Hospital
• Peter MacCallum Cancer Centre

The Non-Admitted Patient Radiotherapy funding model is comprised of:

1. A Variable Payment per WAU up to set targets for Public, DVA and Other Private patient categories
2. An Associated Department Cost Payment
3. A DVA premium (where applicable)
4. Specified Grants for Superficial RT, Deep Tissue RT, Stereotactic Radiosurgery, Intensity Modulated RT and Paediatric RT
5. A Private Revenue adjustment
6. A Growth Payment is to be funded at the full variable rate
   • The Variable Payment has been set at $156.50 per WAU
   • The Associated Department Cost Payment at $70.50 per WAU. These services must be provided to all patients as required. They include:
     • Allied health
     • Patient accommodation
     • Patient transport
     • Patient education
     • Pharmacy (associated with planning)
     • Radiology.
   • The DVA premium is 21% above the combined Variable and Associated Department Cost Payment.
   • The Private Revenue Targets have been adjusted according to estimated private activity levels.
   • Activity growth will be funded for all patient types as identified in the table below.

The funding model changes introduced for 2002-03 in consultation with the Industry Finance Committee Radiotherapy Funding Working Group will continue. The modifications were that:

• agencies will retain 30% of estimated private patient revenue;
• activity growth will be funded for all patient types; and
• providers’ revenues per WAU (inclusive of DHS and HIC) be equalised as far as practicable.

Following a review of non-admitted radiotherapy costing and funding in 2005-06, radiotherapy services will be shadow funded in 2006-07 using the recommended funding model. This process will inform options for funding reform in 2007-08.