Budget figures reveal flawed hospital funding
The AMA has renewed its call for an extension of fair 50-50 funding to help clear the hospital logjam following the discovery of data in the Budget papers showing that fewer patients than planned would be able to access hospital treatment over the next four years.
The AMA has renewed its call for an extension of fair 50-50 funding to help clear the hospital logjam following the discovery of data in the Budget papers showing that fewer patients than planned would be able to access hospital treatment over the next four years.
The AMA has exposed the fact that the Commonwealth is planning to spend less than anticipated on public hospital funding, blaming this on the states and territories, who Budget papers claim have revised downwards their service volume forecasts. This downgrade is stated to save the Commonwealth $2.4 billion over the next four years. AMA President, Professor Stephen Robson, said budget details showing fewer patients than planned would be able to access hospital treatment over the next four years demonstrated the severe shortcomings in funding arrangements between the Commonwealth and the states.
He told ABC News Breakfast the AMA was stunned by the decreased forecast for hospital funding revealed in last week’s Federal Budget.
During the COVID crisis, hospital funding was equitably shared 50-50 between the Commonwealth and states, however, the federal government has announced this arrangement will end in December when funding reverts to a 45 per cent (Commonwealth) and 55 per cent (states) with a 6.5 per cent cap on funding growth.
Professor Robson said on ABC, “Our beef is with the funding arrangements, which over the past few years have been split 50-50 between the states and the Commonwealth, but this is ending at the end of this year. So we are keen to see that arrangement continue.”
He said the budget forecast funding reductions were based on an expected reduction in the volume of hospital services from the states and territories.
“The reason for the forecasts of activity going down is probably because hospitals are so smashed that they cannot get staff and it’s difficult for them to function,” Professor Robson said.
“There are hundreds of thousands of Australians waiting for elective surgery operations, hundreds of thousands waiting to get into see a specialist at public hospital clinics and we are seeing emergency departments smashed with ramping.
“There is an enormous backlog that has to be tackled and it is going to take years.”
Professor Robson said the budget forecast for funding reductions and the ending of the 50-50 funding split in December would worsen the already dire hospital situation and he called for an extension of fair 50-50 funding arrangements.
“We think it is a matter of good sense and would be great for Australia,” he said.
