Peter Dutton (Dickson, Liberal Party, Shadow Minister for Health and Ageing) Share this | Link to this | Hansard source

Reform of this bill follows a classic Labor path: reform means creating yet another bureaucracy. The National Health Performa­nce Authority is to be charged with monitoring and reporting on the performance of local hospital networks, public and private hospitals, primary healthcare organisations and other bodies that provide healthcare services. It was to be an incredibly wide-ranging brief. Unfortunately, though, the bill provides absolutely no performance indicat­ors that the proposed authority would monitor and report upon. The government controlled House of Representatives Stand­ing Committee on Health and Ageing held an inquiry into this bill. There was one extremely brief public hearing for the Department of Health and Ageing to answer, seemingly, one question, and a report from the committee was then tabled, with just one recommendation, that being for the House to pass the bill with a minor amendment requiring an annual report to the parliament. Given submissions to the inquiry outlined serious reservations regarding this legisla­tion, coalition members presented a dissenting report that it would be unwise for the House to pass legislation until stakeholder concerns were addressed.

The dissenting report noted:

… there are far too many unanswered questions about the National Health Performance Authority … . The House should not debate this bill until the Government clarifies this matter.

It also noted:

… a number of stakeholders that wanted to contribute to the Inquiry were unable to due to the haste with which the Inquiry was conducted.

So it is worth looking in some detail at what some of the stakeholders said about this legislation. The Australian Medical Associ­ation, for one, has called for the legislation to be deferred, wanting an assessment of the impact of the legislation and detail of what data must be provided to the authority by health provider organisations.

The explanatory memorandum to this legislation states that its measures will have no regulatory impact on business or individuals. The AMA bluntly responds: 'We do not believe this is a true statement.' The AMA is also concerned that smaller private hospitals and medical practices will not be able to cope with some as yet unidentified data collections. It wants the data that is to be provided to the new authority to be included in a disallowable instrument and made publicly available prior to the passage of this bill through parliament. The AMA expresses concern that the legislation does not provide any information on the interaction between this proposed authority and the Australian Commission on Safety and Quality in Health Care, established in the prior legislation, or the proposed independent hospital pricing authority. This stakeholder wants consultation about what this authority will do, it wants open and transparent processes and it wants account­ability to parliament. Passing strange is the claim from the government that the authority is all about enhancing transparency in the healthcare system, yet it does not intend that there be transparency in this legislation.

The Consumers Health Forum of Australia is another stakeholder wanting more information on the areas of perform­ance to be assessed by this proposed authority. In its submission its states:

… we consider that it is appropriate, and indeed necessary, for the legislation to outline at least a minimum scope for the areas of performance to be assessed by the Performance Authority.

Among other numerous concerns, at another point Consumers Health Forum says they 'would like to see more detail about the functions of the Performance Authority'. The forum also wants greater safeguards for patients in relation to information the authority may gather and release.

Clarity, transparency and scrutiny are aspects that recur throughout stakeholders' submissions. The Australian Private Hospi­tals Association has concerns that this new authority will simply add 'yet another layer of compliance burden for both the public and private hospital sectors'. Its submissions to the House committee inquiry stated that 'any national data collection must replace the current system of multiple reports' to multiple government agencies, which it says places a 'significant regulatory compliance burden' on private hospitals. Again, it adds to the cost of delivery to patients. The association argues for real reform but it, too, wants scrutiny of the data that hospitals may have to provide to this proposed authority. And, when decided upon, that data set, the association says, 'should be presented to the Parliament as a Regulation, so that it may be properly and publicly considered'.

The bill was also the subject of a Senate committee inquiry. Submissions to the Senate inquiry raise even greater concerns about this bill. The Royal Australian College of General Practitioners warns that the provisions of this bill hold long-term threats to 'harm the current high standard of medical services, and consequently health services, delivered to the community'.

Catholic Health Australia held similar worries. In its submission to the Senate it stated:

The legislation as currently drafted is very broad – indeed vague – on the scope, range and detail of data that will be required to be submitted.

CHA wanted to see that detail set out in regulations, which would enable the parliament to exercise oversight. It said that such details needed to avoid 'unintended consequences' and that the authority should 'not result in health services unduly focusing on particular performance indicators to the detriment of their overall performance.' CHA issues this warning:

We need, for example, to learn from the recent experience of the Mid‐Staffordshire NHS Trust in the United Kingdom, where it has been reported that between 400 and 1200 excess deaths together with appalling lapses of patient care and hygiene occurred between 2005 and 2009 as a result of the local board and hospital management focusing more on meeting performance and cost cutting targets than on actual patient care.

Apart from those overriding issues, stakeholders found a myriad problems with this bill. The Royal Australian College of General Practitioners was concerned about virtually every aspect of the proposed performance authority from its composition to its functions and powers, its independence and its relationship to the other authorities this government has established and is proposing to establish. A body with such wide-ranging reach over every aspect of health care, the college submitted, should draw on expertise from all sectors, yet the only specification for the make-up of the authority in this legislation is that one of its members must have experience in rural health. The college pointed out that it was unclear whether general practice will be monitored by the authority, and clarity is needed on the issue. It fears that if general practice is to be monitored then onerous data collection and reporting requirements could be imposed on already overworked and overstretched GPs and could subtract from their capacity to deliver services to communities.

Finally, it noted that 'there is a significant overlap between the roles and functions of' this authority 'and the Australian Commi­ssion on Safety and Quality in Healthcare.' Catholic Health Australia echoed many of those points in calling for clarity on the role of the authority, noting that the Australian Commission on Safety and Quality in Healthcare, the Australian Institute of Health and Welfare and the Australian Bureau of Statistics already collect data on hospitals and health services. CHA also wanted the legislation drafted in such a way that the governance arrangements of the authority would reflect the make-up of Australia's health system and therefore would have members with knowledge of public and private hospitals, primary health care and private or non-government healthcare provision.

The Australian Institute for Primary Care and Ageing also raised significant issues with the functional overlap between this authority and the already-operating commi­ssion for safety and quality that would 'place a substantial administrative burden on individual health services'. Its criticisms noted that there was no objective for the performance authority itself and the bill provides only a list of its functions. In response to the minister's past rhetoric about the importance of this new bureaucracy, the institute stated this:

It is difficult to see how the bill will create the "backbone of a modern, integrated, high-performing health system" when the bill itself does not appear to be integrated.

A submission to the Senate inquiry from the Council of Procedural Specialists queried the very need for the authority proposed by this bill. It said it could find 'no justification or compelling case' as to why it is needed. It submitted that Australia already has an independent major national agency to provide reliable, regular and relevant information and statistics on Australia's health and welfare: that is, the Australian Institute of Health and Welfare. The submission said the council had 'concerns about the agenda, nature and ultimate purpose of this new agency'. It went on to say, 'The establishment of a new authority may have a wider purpose than that which is currently being outlined.'

So it is true to say that there were recurring themes throughout many of the submissions to the House and Senate committees, namely that there is a lack of clarity about this legislation and the authority it will establish, a vagueness about what it will do, a lack of goals and objectives, a concern about duplication with other existing and new agencies this government is establishing, worries about the administrative burden being placed on health service providers and concern about the composition of the authority board.

In assessing stakeholder commentary on Labor's so-called health reform, researchers in the Parliamentary Library found that many of the concerns raised by stakeholders were pertinent. In fact, the Bills Digest raises more questions than it answers. Let me just take some of the points and issues raised in the Digest in relation to this bill. It points out, firstly, that it is unlikely that the authority as a single entity will be able to achieve its objectives and, secondly, that the bill does not provide any details on how the three national governance agencies, the safety and quality commission, the performance auth­ority and the pricing authority, will work together to deliver improvements in the Australian health system. The next point is that it is not yet clear how the upstream National Health Performance Authority proposed in this bill will connect with downstream factors, namely, healthcare providers. The fourth point is that this bill does not give the authority any enforcement powers; it cannot compel state and territory governments or private and non-government organisations to provide performance data, and it cannot compel individual providers to make changes that will lead to better performance. Next it is stated that it is unclear how many primary healthcare providers will be monitored directly by the National Health Performance Authority. The frequency of reporting by the national performance authority is not specified in the legislation. It went on to say that the authority is reliant on the goodwill of organisations to provide information; next, that currently the proposed legislation is silent on arrangements for private hospitals; and, finally, that the lack of any specific provision regarding private hospitals in the bill highlights jurisdictional limits on the Commonwealth.

There are some further interesting points from the Digest that I think need to be highlighted, and they relate to the concerns of stakeholders. It summarises them in this way: that this legislation does not appear to reflect the initial remit of the authority except in very broad terms, that there is a lack of clarity about the role and function of the authority and that what the Minister for Health and Ageing outlined as that role in her second reading speech differs to what has been previously outlined by the government. The Digest concludes:

This lack of detail combined with the lack of power attributed to the Authority raises questions about the extent to which the Authority can achieve its objectives as set out in the Bill … or as articulated by Government.

In other words, this was a totally flawed piece of legislation which should not be before this parliament, and the amount of amendments presented today clearly highlights that fact. The Australian Healthcare and Hospitals Association publicly expressed concern in March of this year about the lack of consultation by the federal government with stakeholders. In its submission to the Senate the association stated:

It is clear that the legislation fails to recognise the formal role of state and territory Governments as majority funders and system managers of public health services including overall responsibility (statutory and political) for the performance of LHNs, public hospitals and state/territory primary health care services.

The Western Australian Premier, Colin Barnett, made exactly that point in a submission to the Senate. He said:

… I believe the Commonwealth has gone beyond what is contemplated as the role and function of the NHPA in the HoA I signed at the COAG meeting on 13 February, 2011.

He further wrote this:

… the Bill undermines the States' and Territories' role as system managers of the public hospital system with the potential to significantly disrupt and destabilise the on-the-ground operations of the State's hospitals and health services.

The Premier points out that the authority is being established on the basis of a joint agreement at COAG, and yet the provisions of the bill would allow the Commonwealth minister, without consultation with the states, to extend the functions of the authority. That, the Premier said, was unacceptable to Western Australia. The Victorian minister apparently expressed similar concerns in a letter to Minister Roxon, which brought up the multitude of amendments now before us.

Given those views—and it is my understanding that it was not just the two states I have mentioned; several other Labor states expressed a similar view—ultimately Minister Roxon realised that she needed to consult with the states overall on her so-called historic reform and consequently was forced to convene a special meeting of the Australian Health Ministers' Conference at an airport lounge in early June. As the communique from that meeting stated, the ministers agreed that the states and territories are the system managers and, as such, the performance managers of public hospitals in our country. That is now reflected in the amendments before the House. New clauses spelling out the role of state and territory health ministers as health system managers form a key amendment stating that this parliament will acknowledge that role and that the parliament intends that the national performance authority in performing its functions will have regard to that role. The Council of Australian Governments will be able to set policy principles for the authority rather than this minister being able to simply impose her view on the world and ride roughshod over what are rightly state functions.

Other amendments which this minister now puts forward will limit her actions in relation to this national performance authority. The minister will need the state and territory ministers to approve her specifying which bodies and organisations are local hospital networks or hospitals for the performance authority to report on. The authority's function to monitor and prepare reports on healthcare services other than hospitals, hospital networks and primary care will need approval in writing from COAG. The minister will need approval from COAG if she intends to widen or change the functions of the performance authority. The scope of the authority's reporting will be changed totally by these amendments. The authority will not have the right to directly consult and seek responses from individual hospital networks or hospitals where reports of poor performance are being prepared. Under these amendments, it will provide the reports to and seek responses from state ministers. The authority's strategic plan will also need agreement from the states.

So change has been forced upon this hapless minister. States' concerns have been addressed. The minister has been sanctioned and duly embarrassed. But not all of the significant concerns and issues voiced by stakeholders in their submissions to the House and Senate committee inquiries have been addressed. In particular the private sector of health is no clearer about what the establishment of this new bureaucracy will mean for it and whether it will face a new and increased burden in reporting to yet another arm of government.

This remains an unnecessary and flawed piece of legislation. I would remind the House that, at the time the government introduced the National Health and Hospitals Network Bill that this bill now seeks to substantially amend, the coalition called on the government to introduce all of the provisions for all of the new bureaucracies it sought to establish in one piece of legislation so that the parliament, the stakeholders and the public could see exactly what this government proposed with these authorities and their operations. I repeat that call again today. I call on the Independent members of the House to note the serious issues that have been brought to the fore and the widespread deficiencies pointed out in this legislation. I call on them to support the opposition in refusing to give this bill a second reading and to put a halt to this piecemeal approach and growth of bureaucracy.

In summary, it has to be said, particularly with the developments of the last 24 hours, that this is a government that are completely shambolic. They promised as far back as 2007 that they would fix public hospitals. They promised to become the major funder. They promised that they would work in a collaborative way with the states. They have promised amendment after amendment and reform after reform. I think on three or four occasions different iterations of the reform have been described as historic by this government. Nothing is further from the truth. They have walked away from, backflipped on, compromised on and ultimately given up on every piece of reform that they have had on the table for the last four years.

This Prime Minister said four months ago that she had an agreement. It turned out to be a heads of agreement to agree at a later date. Four months down the track what we find is that they have had to delay the COAG process, not because some sort of result is pending and they need to tick off on a couple of additional points, as the minister pointed out, but because, as the minister loosely let slip yesterday in a press conference—embarrassingly, she later had to have her press secretary call up and say, 'This is under embargo until tomorrow'—this government have basically given up on health reform. It is patients around the country who are suffering as a result. It is clear that this minister has no capacity to negotiate.

As we have seen during the course of the last few years on every issue that they have put before the Senate, the government have either compromised or let it go. They have no capacity to negotiate and it has been seen clearly over the last 24 hours that the states have completely outmanoeuvred and outnegotiated what is a desperate govern­ment. The problem for this government is that they are a buyer in distress. The Indonesians know it in relation to other debates at the moment. The Malaysians know it in relation to other debates. The Australian business industry knows it in relation to other debates that are underway at the moment. The Australian premiers and health ministers know it as well. This is a government on the ropes because of their own incompetence. They have not been able to put forward a coherent package.

We warned on a number of occasions that this eventuality would be arrived at in the health portfolio. We said to the government, 'Do not bring forward this piecemeal approach of additional bureaucracy.' That was the formula that New South Wales Labor had for health. That is the formula that Queensland Health still has in place because of the Labor government in Queensland. Increasing the bureaucracy and increasing the burden of bureaucracy in the health system is not the way to fix our health system at all. In fact, what Labor is enacting at a federal level is the completely failed model of New South Wales, Victoria and Queensland Labor over the last decade that has led to disastrous outcomes. This govern­ment now seeks to try and apply that same failed formula, not just to this aspect but also to the private health insurance arrangements that are proposed at the moment, which I think would put into ultimate decline the private health insurance numbers in this country and increase the burden on the public health sector at a time when Australian families cannot tolerate another increase in their out-of-pocket expenses as proposed by this government.

Throughout the period of this Labor government, first under Kevin Rudd and now under Julia Gillard, there has been constant talk about health reform—but, as I say, very little in the way of concrete results. Despite the pages, the multitude of press releases, the communiques, the agreements and the numerous volumes of publications produced on health reform, many are left shaking their heads at the lack of actual detail about how most elements of this so-called reform are actually supposed to fit together and operate in the real world. The reality is that the government do not know what they are doing in every area of their responsibility, and that is sadly the case for health as well. I think Australian patients right around the country, and the whole public, want to make sure that we see improvements to our health system—but this government just do not have the capacity to deliver on that which they promise. They may well be full of good intent but they have no ability whatsoever to deliver what reform is desperately needed. This government have squandered four years of opportunity, and there is no light at the end of the tunnel. Accordingly, I move:

That all words after “That” be omitted with a view to substituting the following words: “the House declines to give the bill a second reading until provisions establishing the Independent Hospital Pricing Authority, including its functions and responsibilities, are presented to the House for its consideration.”

Dick Adams (Lyons, Australian Labor Party) Share this | Link to this | Hansard source

Is the amendment seconded?

Sussan Ley (Farrer, Liberal Party, Shadow Minister for Childcare and Early Childhood Learning) Share this | Link to this | Hansard source

I second the amendment.

Michelle Rowland (Greenway, Australian Labor Party) Share this | Link to this | Hansard source

I am pleased to speak in support of the Nat­ional Health Reform Amendment (National Health Performance Authority) Bill 2011. This piece of legislation builds on the government's national health reform agenda and is an amendment that will greatly improve the transparency of hospitals, heal­thcare services and national performance standards. This amendment is a crucial part of this government's national health reform agenda, as settled by the Council of Australian Government meeting last year, and agreed again in the Heads of Agreement National Health Reform meeting earlier this year.

This bill is designed to introduce new national performance standards and improve transparency for the healthcare sector. On 13 February this year the respective state leaders and the Prime Minister agreed that more transparency on the performance of health services will help drive improved performance and will help patients to make informed choices about their health care. This bill is a direct result of that meeting and it will work to increase that basic tenet of any healthy democracy: transparency. This bill achieves this transparency for the healthcare sector through the proposed establishment of the National Health Performance Authority.

I want to turn to some of the main provisions of the bill, which makes a number of amendments to the National Health and Hospitals Network Act 2011. These addit­ions will greatly improve the transparency of the healthcare sector and allow for all Australians to make more informed choices when considering healthcare services, and I thank the minister for her steadfast commitment to increasing transparency in the sector. The specific provisions outlined by these new chapters propose slight changes to the Australian Commission on Safety and Quality in Health Care, in chapter 2, and the establishment of the National Health Performance Authority in chapter 3. The establishment of the National Health Perf­ormance Authority is the main provision outlined by this amendment and will work to enhance healthcare services around Australia.

According to this bill, the National Health Performance Authority's main function is to monitor and report on performance of the following: local hospital networks, public hospitals, private hospitals, primary healthcare organisations and other bodies that provide healthcare services. This will create increased transparency and greatly assist all Australians in making informed decisions about their health care. The MyHospitals website will continue to report information on the performance of individual hospitals as well as on the performance of local health networks. This is another aspect of this government's commitment to increasing transparency through e-government initiatives. A paper from the Public Administration Review by Caroline Tolbert and Karen Mossberger entitled 'The effects of e-government on trust and confidence in government' found that 'e-government improves process based trust by improving interactions with citizens'. And this is what the MyHospitals website does. Partnered with the new National Health Performance Authority it will allow for taxpayers to be kept informed on matters relating to the healthcare sector through more accessible and efficient services. The funding for this amendment was allocated in the 2010-11 budget at a cost of $118.6 million over four years. The government has also decided to offset $9.1 million, resulting in the net cost to the performance authority being $109.5 million over four years.

Last month a number of amendments were endorsed in principle by a meeting of health ministers which are designed to establish a stronger partnership between all Australian governments in the spirit of the COAG agreements, something that I also endorse. These amendments will allow for greater cooperation between the Commonwealth and the states and will recognise the role of state governments as managers of the public hospital system.

The provisions outlined by this bill are indeed fantastic initiatives and ones that will have a positive impact on all Australians, especially those in my community. I would like at this point to turn to my electorate of Greenway, where the demand for health care is extremely high. With a large population of vulnerable citizens, including more than 13,000 people over the age of 65, and a staggering 69,000 citizens aged from zero to 14 in the Blacktown local government area, healthcare services are a high priority and are in serious demand from my constituents.

The west and north-west growth areas of Sydney are rapidly expanding, due to escalating housing developments and other factors. With this rapid growth comes the demand for increased services and more information. The CEO of the Hawkesbury Hills division of the Australian General Practice Network, Mr Frank Kellett, has highlighted to me on a number of occasions the challenges that we in the west and the north-west of Sydney face. In corresp­ondence to me earlier this year Mr Kellett raised concerns over the challenges health services face in many parts of my electorate and further north. He said:

The rapid growth of the north-west growth centre requires that primary healthcare services be planned according to the unique needs of this area.

With the population of the north-west growth centre expected to grow from 300,00 to half a million in the next five to 10 years, according to the Hawkesbury Hills Division of General Practice, the healthcare sector must respond accordingly, and this govern­ment is committed to doing this. The creation of the National Health Performance Authority in association with the My Hospitals website will allow people in my electorate and the north-west of Sydney to access information regarding the perform­ance of their healthcare providers and manage their healthcare affairs accordingly.

This government's record of improving healthcare services continues. Since 2007 the government has committed funding to 36 GP superclinics, increased GP training places by 35 per cent, continued to provide grants to support the viability of after-hours GP services, and provided incentives to encourage general practices to provide quality after-hours services. On top of this, the government has drawn together Australia's highly fragmented healthcare system and created a national arrangement through the National Health and Hospitals Network.

The $416.8 million invested in the establishment of Medicare Locals will support health professionals, improve the delivery of primary healthcare services at a local level and improve access to after-hours primary care. Medicare Locals will provide better integrated care, making it easier for patients to deal with the local healthcare system.

In my electorate, and indeed in the wider communities of Western Sydney, this government continues its commitment to improving services, and it has been welcomed from all corners. WentWest, an organisation in my electorate that provides training to general practice registrars, has praised this government's commitment to strengthening and integrating the primary healthcare sector, and for the decision to build Medicare Locals on the existing infrastructure of general practice divisions.

As of 1 July, WentWest became one of Australia's first Medicare Locals, and this again highlights the government's commit­ment to improve healthcare services in Western Sydney. This continues, and was reaffirmed by, the previous state govern­ment's $245 million redevelopment of Blacktown and Mt Druitt Hospital which was officially signed off earlier this year. As is clear for all to see, this government is delivering for Australian families, especially on health. This amendment will add to this proud record and ensure that all Australian families have the tools necessary to handle their healthcare needs.

In light of this amendment being discussed today, I would like to mention an associated event that took place in parliament in March this year. The Decision Makers' Forum, organised by the Community Services and Health Industry Skills Council, provided an opportunity to highlight the key issues affecting the health sector. The forum found that the latest industry information has highlighted an increased demand for community and healthcare services. The council also found that there is an increased demand for primary health and non-hospital based services. Meeting this demand will be this government's primary healthcare service, the Medicare Locals. The forum also highlighted the important role of new technology, such as the government's My Hospitals website, has to play in streamlining health services. The government's My Hospitalswebsite will work with the proposed authority described in this amendment and distribute timely information for all concerned.

Earlier this year, the Minister for Health and Ageing came to Greenway to tour Blacktown's new clinical school, a development that will allow for increased training places for local doctors and nurses. Without the $17.6 million of Commonwealth funding provided under round 1 of the $3.2 billion Health and Hospitals Fund, this development would not have been possible. This funding will make it easier for people to see a doctor or nurse when they need one, and will deliver healthcare professionals on the ground in Western Sydney.

Only last week, the minister again visited Greenway to help launch the after-hours GP helpline with Leanne Gardner and her family—her sons, Jayden and Bailey, and her mother, Betty—in Lalor Park. This new service will see one of Australia's most trusted health brands, Medibank Health Solutions, operate an after-hours service with a team of 100 GPs and over 240 nurses on staff to answer calls and deliver peace of mind for families. Leanne said the new service would be a great help to her family, telling the minister and me that:

It is nice to know that you can contact someone late at night, when your local GP is not open. It gives you reassurance that assistance is always available.

This is another example, in a very long list, of how this government is delivering services that matter to families in Western Sydney. On top of these developments, Greenway has benefited from the allocation of Primary Care Infrastructure Grants. These grants allow local practices to expand and upgrade their existing facilities for the benefit of all in the community.

Torbet Avenue Family Practice, located at Quakers Hill, received $271,000 under stream B of the Primary Care Infrastructure Grants. This funding will be used to provide two additional consulting rooms, two nurses stations, a conference room and an expanded waiting room. These developments have allowed this practice to recruit an additional doctor and a nurse, and a dietician, a podiatrist and a psychologist part time.

Western Sydney also stands to benefit from this government's investment in e-health records. E-health records will provide faster diagnosis, cut down on medication errors and give patients peace of mind as doctors will be able to see the patient's medication history no matter what the circumstances. On top of this, people in Western Sydney will soon have better access to MRI scans, thanks to changes announced in the budget. Western Imaging Group in my electorate has been granted a Medicare licence for their upright MRI machine to allow for greater access to Medicare rebates.

I want to make it clear how this government has delivered on health. The developments in my electorate and in the wider community have only been possible due to this government's focus on improving health services, and I particularly thank the minister for her commitment to helping people in Western Sydney in this regard.

The bill achieves a great thing for all Australians, and it continues this govern­ment's commitment to provide quality, affordable and efficient health care. This amendment will create the National Health Performance Authority that will scrutinise and provide feedback on all aspects of the health industry, greatly improving transpar­ency. The feedback will also allow all people to make informed decisions on their health care and improve the way they manage it. That is why I commend this bill to the House.

Judi Moylan (Pearce, Liberal Party) Share this | Link to this | Hansard source

When introducing the National Health Amendment (National Health Performance Authority) Bill 2011 the Minister for Health and Ageing in her second reading speech declared that the National Health Performance Authority would form 'part of the backbone' of the government's so-called health reforms. Such a statement is very hard to assess given that scant details about the workings of the authority are contained in this bill, or in public explanations by the government about how it is to operate.

The bill will amend the National Health and Hospitals Network Act, which passed both houses on 21 March. That act established the Australian Commission on Safety and Quality in Health Care, or ACSQHC, as an independent statutory body. This body existed before that as a non-statutory body established by the Australian Health Ministers' Conference on 1 January 2006, which itself evolved from the Australian Council for Safety and Quality in Health Care, which was created in January 2000 under the former coalition government.

Throughout its various iterations the commission has led and continued to coordinate improvements in safety and quality of health care, reporting publicly on clinically relevant topics, such as patient experiences, medication safety and hygiene, against national standards. Whilst it does not report on performance data of individual health providers, the commission does supply strategic advice to health ministers, especially to drive topical performance improvement and recommend quality and safety standards. In amending the National Health and Hospitals Networks Act, this bill seeks to create a national performance authority to formulate performance standards for hospitals, collect and analyse data to determine whether hospitals are meeting those standards and advise the health minister on the performance of health service providers. The bill does not intend to enlarge the function of the ACSQH or replace it with the performance authority. Instead, the amalgamated bills, to be known as the National Health Reform Act 2011 once enacted, will create two separate bodies, one reporting on existing healthcare standards for safety and quality and advising the health minister on thematic issues and another one formulating performance standards for hospitals, collecting data on hospitals and advising the minister on particular service providers.

The cost to government is $35.2 million for the ACSQH over four years and $109 million over four years for the performance authority. Considering the similarities in purpose of the two statutory bodies and the fact that the government will amalgamate the two bills, it is incredible that the government has not simply considered amalgamating the two bodies. Continually expanding bureau­cracy has been the hallmark of this government's reforms. As outlined by my colleague the shadow minister for health during the debate on the National Health and Hospital Network Bill 2010, the bodies to be established by this government as part of the health reforms include the Independent Hospital Pricing Authority, at a cost of $91.8 million; the national performance authority, at a cost of $109 million; Medicare Locals, at a cost of $416.8 million; the national funding authority, at an unspecified cost; the state-based funding authorities, which have since been scrapped; and local hospital networks, at an unspecified cost. The final figure will be well in excess of half a billion dollars, and perhaps more towards $1 billion, to establish separate bureaucratic bodies.

Whilst the 13 February 2011 agreement of the Council of Australian Governments specifically mentions the creation of the performance authority, its apparent genesis is in recommendation 33 of the National Health and Hospital Reform Commission report published in 2009. That recommendation was:

To improve accountability, we recommend that public and private hospitals be required to report publicly on performance against a national set of indicators which measure access, efficiency and quality of care provided.

The recommendation does not call for a new government body to collect and publish reports. In fact, it places the onus on the hospitals to produce the report publicly outlining whether particular indicators have been met. Of course the government would argue that one of the functions of the performance authority, as the bill outlines, is to investigate and determine exactly what those indicators should be. However, the Australian Council on Healthcare Standards notes in its submission to the House of Representatives Standing Committee on Health and Ageing, which is currently investigating this bill:

ACHS has a well-established, substantial indicator program which holds one of the largest clinical data sets of its type in the world. ACHS is willing to collaborate with the Performance Authority to adopt or incorporate ACHS clinical indicators.

If a not-for-profit, Australian-based organisation already has the available information and is willing to work with the government, why is $109 million of taxpayers' money required to establish a new body?

In her second reading speech to this bill, the Minister for Health and Ageing stated that the government has 'listened to the advice of the National Health and Hospitals Reform Commission.' However, the final report of the reform commission, entitled A healthier future for all Australians, does not mention the creation of a performance authority. It does mention, in appendix H on page 252, that the creation of a national performance reporting and accountability framework—not body—is estimated to cost $12 million, not $109 million. Later, on page 261, the report explains its costings and expands on recommendation 33, which called for performance reporting. The passage states that the:

… Australian Institute of Health and Welfare currently exists and its funding could be increased to reflect an expanded function of national performance reporting.

The Australian Institute of Health and Welfare was established in 1987 as an independent statutory body to provide statistics and reliable information to the Australian government. It collects and analyses data, including on individual hospitals, and is accountable to the parliament through the Health and Ageing portfolio. I had the pleasure of working closely with this organisation when I was a minister and I can vouch for the incredibly good work that the Australian Institute of Health and Welfare does. Its website notes:

… in doing our work, we collaborate closely and have effective data partnerships with many experts from around Australia, including the Australian Bureau of Statistics, government at all levels, universities, research centres and non-government organisations.

The institute even currently supplies data for the government's My Hospital website.

The Australian Institute of Health and Welfare has existed for 24 years. It is an independent statutory body collecting, analysing and reporting on hospital and health statistics, with an established range of partnerships. The expert panel of the National Health and Hospitals Reform Commission appointed by the government called for a relatively modest expansion of the institute to cope with any performance reporting requirements. But instead the government believes that it is appropriate to reinvent the wheel and establish another independent body at enormous cost to the taxpayer. Had the government instead agreed to fund the expansion of the Australian Institute of Health and Welfare, the costs would have been only 11 per cent of that of the proposed performance authority.

How the proposed performance authority shall operate in conjunction with the Australian Commission on Safety and Quality in Health Care and the Australian Institute of Health and Welfare is unknown. No details are included in this bill. There is no detail on how the authority is meant to 'improve quality, increase transparency and drive value for money,' as the minister claimed it would in her second reading speech. Under this bill, the performance authority has no power to compel disclosure of statistics or information by hospitals and health providers.

In pursuing the creation of the performance authority, the government is doing exactly what its own former Minister for Finance and Deregulation, the Hon. Lindsay Tanner, expressly warned against. In a speech to the Australian Institute of Company Directors on 14 October 2009, the then minister stated:

The indiscriminate creation of new bodies, or the failure to adapt old bodies as their circumstances change, increases the risk of having inappropriate governance structures. This in turn jeopardises policy outcomes and poses financial—

Bruce Scott (Maranoa, National Party) Share this | Link to this | Hansard source

Order! The debate is interrupted in accordance with standing order 43. The debate may be resumed at a later hour and the member for Pearce will have leave to continue her remarks.