Home > Health > Labor’s hospital reform explained

Labor’s hospital reform explained

April 21, 2010

Confused by Labor’s proposed hospital reforms? Don’t be. Here is the “simple guide” to how the hospital system will work under Labor’s reform.

It all starts with you, dear taxpayer. You pay tax. Thanks.

Under the new system, the Commonwealth government will contribute 60% and the State governments will contribute 40% into a new set of seven funding bureaucracies (though 1/3 of the commonwealth money is simply re-badged GST). These new bureaucracies will then distribute money to 90 “regional” health bureaucracies, who distribute the money on to the hospitals, partially according to the rules established by a new federal pricing bureaucracy, partially according to the rules of the old state bureaucracies (who remain on as “system manager”) and partially according to their own discretion. There. Simple.

With that combination of the commonwealth health bureaucracy, commonwealth hospital pricing bureaucracy, state health bureaucracies, state hospital funding bureaucracies, and regional hospital bureaucracies, the new system is supposedly going to improve the quality of health care and end the blame game. Yeah. Good luck with that.

Then of course there is the WA exception, but let’s not complicate things.

  1. TerjeP (say tay-a)
    April 25, 2010 at 11:20 am

    So how will the Liberal Party hospital reform work?

  2. April 25, 2010 at 12:38 pm

    The Liberal Party hasn’t announced a full health policy as yet.

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