AMA's response to the Commonwealth's position on the Australian Health Care Agreements
AMA President, Dr Kerryn Phelps, today welcomed the Prime Minister's release of initial details of the Commonwealth offer in the renegotiation of Australian Health Care Agreements due to start on 1 July this year.
"While welcoming the general direction of the offer, the AMA will assess the Commonwealth's offer in the context of the whole health budget," Dr Phelps said.
"If the PBS, Aged Care and general Financial Assistance Grants to state budgets are also reasonable when the budget is announced, the Prime Minister's package looks of the right order," she said.
"The Commonwealth's commitment to spend $42 billion over the next 5 years provides for maximum annual growth in hospital outlays by the Commonwealth of 5.67 % per annum. This amount is reasonable if the states commit to similar indexation.
"The decision by the Commonwealth not to claw back the grants for the impact of the private health insurance increases is a welcome one. Public hospitals have been seriously underfunded and this decision offers a chance for public hospitals to recover.
"The decision to provide incentives for financial accountability and matched indexation over the life of the agreement is also a positive move.
"If the States agree to match indexation of public hospital funding, there will be real benefits for patients. If not, the States will not be in a position to complain about the level of Commonwealth indexation. But it is not only about levels of funding.
"Many reform issues have been identified by the Reference Groups and agreed to by the Health Ministers. These must not be lost.
"The commitment to improving links between primary care, acute care, community care and residential care, cancer care, pharmaceuticals, emergency care and workforce issues must be maintained.
"A time table for the progression of these issues must be sorted out," Dr Phelps said.
CONTACT: Judith Tokley (02) 6270 5471 / (0408) 824 306