December 18, 2012

Queensland Hospital and Health Boards have written to Prime Minister Julia Gillard to warn against the negative impact of Commonwealth funding cuts – including a threat to Hospital Emergency Department performance.

A total of 17 boards control Queensland Hospital and Health Services (HHS), defined under a National Health Care Agreement and recognised by State and Commonwealth governments.

The chair of the body established to represent the joint interests of boards state-wide, Darling Downs chairman Mike Horan, says the cuts will claw back $103 million from HHS budgets in the seven remaining months of 2012-13.

Writing on behalf of all Queensland Hospital and Health Service chairs, Mr Horan told the Prime Minister the cuts were inconsistent with the National Agreement and its underpinning principles of transparency of funding and performance.

“We wish to advise our serious concerns regarding the negative impact that the funding cuts will have on the delivery of public sector health services in Queensland, and in particular their imposition halfway through the financial year, when funding has already been budgeted and allocated,” Mr Horan wrote.

He questioned the population data underpinning the cuts.

“Queensland continues to experience significant population influxes, particularly in regional Queensland due to the effects of the mining industry,” he said.

Under the National Health Reform Agreement, HHS are responsible for health service delivery and budget management.

“Service Agreements have been publicly available for a number of months, providing both our communities and staff with clear expectations about the level of funding to be provided in return for a specific range of services,” Mr Horan said.

“In line with the national health reform agenda, Queensland’s HHS have been working hard to find efficiencies and make structural reforms in preparation for National Activity-Based Funding and the introduction of the National Efficient Price.”

He said boards recognised the importance of improving efficiency and the long term sustainability of the health system. “However, we will find it extremely difficult to avoid a reduction in services as a result of the cuts to our budgets from the Commonwealth and Mid-Year Economic and Fiscal Outlook for 2012-13,” he said.

The impact of the Federal Government’s decision was compounded because the loss of funding was retrospective, he said.

“We are extremely concerned about the impact of the cuts on achievement of the National Emergency Access and Elective Surgery Targets,” Mr Horan wrote.

“We ask that the Commonwealth reconsider its decision and at a minimum immediately review the population assumptions on which the funding reductions were made.”