Media release

Major health reform must be given a chance to deliver - AMA

AMA President, Dr Andrew Pesce, said today that the public hospitals policy unveiled by the Prime Minister is major reform that must be taken seriously and given due consideration by the States and the health sector because we need a system that will give better access to quality health services for the Australian population into the future.

Dr Pesce said the policy is a credible response to the problems and deficiencies in the public hospital system and is evidence that there has been considerable consultation with patients and with doctors.

“The AMA supports the Prime Minister’s preparedness to take responsibility for health through a more dominant role for the Commonwealth in funding our public hospitals,” Dr Pesce said.

“Upon first examination, the new National Health and Hospitals Network is responding to the needs of patients.

“We are pleased that the Government has taken on board many elements of the AMA’s Priority Investment Plan for Australia’s Health System in developing this policy.

“While the AMA called for a single funder, and this isn't exactly what was announced today, what we really require is clarity of funding responsibilities, and today’s announcement goes a long way towards that goal.

“The Commonwealth’s 60 per cent contribution makes it the dominant funder, which supports the Prime Minister’s claim that the Commonwealth is taking on a greater role and greater responsibility.  The States will retain significant funding responsibility, which means that they, along with the Commonwealth, must be responsive to local needs.

“The 60-40 funding split and the Commonwealth’s 100 per cent funding responsibility for outpatients and primary care has the potential to minimise the opportunities for blame and cost shifting.  It will be important to ensure that the end result of the full package of reforms leads to more overall resources in the health system and that hospital funding is unrestrained by artificial caps.

“We fully support the significant focus on local community input and local clinician input to decision-making.

“The AMA will look closely at the overall funding implications of the blueprint as more details become available and as the implications of the GST changes are made clearer.
“Everybody agrees that health reform must start now.  We applaud the Prime Minister for taking responsibility and putting substantial reform on the table,” Dr Pesce said.

3 March 2010

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