Amendment to the 2016-17 Service Agreement Between the Minister for Health and the Tasmanian

Amendment to the 2016-17 Service Agreement between the Minister for Health and the Tasmanian Health Service

Amendment to the 2016-17 Service Agreement between the Minister for Health and the Tasmanian Health Service

Recitals

a)  Pursuant to section 44(3) of the Tasmanian Health Organisation Act 2011, on 29 June 2016 the Minister for Health determined the terms and conditions of the 2016-17 Service Agreement between the Minister for Health and the Tasmanian Health Service (the Service Agreement).

b)  Pursuant to section 44(4), of the Tasmanian Health Organisation Act 2011, the Minister for Health and the Tasmanian Health Service (the parties) agree to amend the Service Agreement on the terms set out in this instrument.

1.  Force and effect

Except as otherwise agreed in this instrument:

a)  Nothing in this instrument is deemed to vary the Service Agreement, and

b)  The Service Agreement remains in full force and effect.

2. Amendment date

All amendments to the Service Agreement set out in Clause 3 below will be effective from the date of signature of this agreement.

3. Amendments

The parties agree to amend the Service Agreement as follows:

Increased Tasmanian Health Assistance Package (THAP) funding of $6.44 million

Increased funding of $6.44 million is made available to the THS for the provision of an estimated 765 additional elective surgery procedures, directed towards longest waiting, over boundary patients. All procedures are to be completed (i.e. patients are to receive their surgery) before 30 June 2017. The estimate of 765 additional procedures is based upon average costs but the final number of procedures provided may differ depending upon the final cost of providing surgery.

Associated Key Performance Indicator (KPI) changes

·  Existing KPI ACT5 (Tasmanian Health Assistance Package elective surgery admissions) – a full year target increase of 765, from 1 002 admissions to 1 767 admissions.

Increased National Weighted Activity Unit (NWAU) reconciliation funding to increase hospital activity in 2016-17 - $7.85 million

Increased funding of $7.85 million will be made available to the THS for:

a)  Provision of an additional 1 500 Endoscopies procedures across the State - $3 million.

b)  Provision of an additional 500 opthalmology procedures across the North and North West - $1.53 million:

o  North – 400

o  North West – 100

c)  Provision of 400 additional procedures above the existing baseline elective surgery admission target - $3.32 million

Associated Key Performance Indicator (KPI) changes

·  Existing KPI ACT3 (baseline elective surgery admissions) – a full year target increase of 900 (500 ophthalmology procedures and 400 various procedures above the existing baseline), from 14 126 admissions to 15 026 admissions.

·  New KPI ACT6 (endoscopy procedures across the State) – 7 940 procedures to be delivered across the State in 2016-17 (representing an additional 1 500 procedures above the agreed baseline volume).

·  New KPI ACT7 (ophthalmology procedures North and North West) – 1 620 procedures to be delivered in the North and North West in 2016-17 (representing an additional 500 procedures above the agreed baseline volume).

·  Existing KPI ACC7 (elective surgery – average overdue days) - a target decrease from 90 days to 69 days by 30 June 2017.

·  Existing KPI ACC8 (elective surgery – maximum wait time) – a target decrease from 500 days to 400 days by 30 June 207.

·  New KPI ACC17 (count of over boundary patients) - a target of 600 over boundary patients by 30 June 2017.

The estimate of 765 additional elective surgery procedures under THAP is based upon average costs and the final number of procedures provided may differ depending upon the final cost of providing surgery. This may impact on the capacity of the THS to achieve the target of 600 over boundary patients by 30 June 2017.

4) Conditions of the additional funding

·  All additional procedures must be completed by 30 June 2017.

·  In relation to increased National Weighted Activity Unit (NWAU) reconciliation funding to increase hospital activity in 2016-17:

o  Funds must not be used for additional activity at the Mersey Community Hospital, and

o  All additional activity must be eligible for the receipt of Commonwealth NWAU revenue (e.g. no compensable patients or outside referred patients).

Signed by:
The Honourable Michael Ferguson MHA
Tasmanian Minister for Health
Date signed: 20 March 2017 / John Ramsay
Chair of the Governing Council of the Tasmanian Health Service
Date signed: 2 March 2017

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