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- 10 July 2004
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I only heard a brief interview on the radio this morning, but I was under the impression that funding will be "activity" based. So the more procedures a hospital does, the bigger its funding. That would seem an equitable way to allocate between states and hospitals within states, if it can be achieved.
While this approach seems "reasonable" in theory, in practice it could be wide open to administrative abuse by hundreds of hospital boards scrambling to increase their share of the cake unless massive Federal oversight is implemented.
There has been plenty of evidence in media over the years about widespread "cooking" of Hospital inventories, procedure lists and bed vacancy rates under the current system for the purposes of achieving higher levels of "accreditation", since that benchmark currently ties into funding. How would this be any different then? Surely, they will have to employ hundreds (nay thousands?) of new "Hospital Inspectors" with Special Powers (at great cost) to continuously police the day to day accounting practices of the myriads of aforesaid hospital board's to ensure no rorting, otherwise this new scheme will fail dismally.
I'm also not sure how in smaller (but rapidly growing) regional communities (Albury-Wodonga etc) the local hospitals that perform relatively few procedures will be able to increase their funding under this new scheme in order to purchase new equipment for expansion - leading to more procedures, but only AFTER the purchase of new equipment/facilities? It's a chicken before egg problem for them?
Oh well. Plenty of years left for KRuddy to get it right. System will be well broke by then!