Gavin Marshall (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Minister for Health and Ageing, Senator Ludwig. Can the minister outline for the Senate how the government’s health reform plan builds on the two years of reform already undertaken by the Rudd government since being elected? What obstacles are being presented to the government’s health reform legislative agenda?

Joe Ludwig (Queensland, Australian Labor Party, Manager of Government Business in the Senate) Share this | Link to this | Hansard source

I thank Senator Marshall for his question and note his continuing interest in crucial reforms to ensure a healthy, prosperous and productive future for our nation. The Rudd government’s plan for the Commonwealth—to take on the dominant funding role for the entire public health system—is designed to end the blame game and put the health system on a sustainable financial footing for the future. For the first time the Commonwealth will take the majority funding responsibility for all public hospital services. Our contribution will almost double, from around 35 per cent to 60 per cent.

For decades we have seen the blame game between the states and territories grow over the funding arrangements for the health system. This was something the current opposition leader turned into an art form when he was the health minister. Our plan builds on the two years of reform already undertaken by this government since being elected. We took immediate action upon coming to office to begin the long-term reform of our health system after more than 11 years of neglect by the opposition leader and his government.

Unfortunately, our plan has met with obstructionism at every turn by the Liberal Party. Even in opposition they continue to risk Australia’s future. The issue of dental care is a case in point. Last week we heard reports of some of the rorting of the chronic disease dental scheme. Since the scheme began in November 2007, we know of a doctor who referred approximately 13,000 services and a dentist who received the most Medicare benefits under the scheme. Approximately $4 million in benefits was claimed. This government has attempted to close this flawed scheme twice, but those opposite—the Liberal Party—have continued to block the attempt. (Time expired)

Gavin Marshall (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Can the minister explain to the Senate how the government’s health reform plan will drive efficiency and eliminate waste in the health system? Why is this necessary?

Joe Ludwig (Queensland, Australian Labor Party, Manager of Government Business in the Senate) Share this | Link to this | Hansard source

I thank the senator for his supplementary question. Those opposite should perhaps get on with the game of helping to build our health system. The National Health And Hospital Network will change the way the Commonwealth funds hospitals. They will be funded nationally and run locally. This change builds on the historic investments already made by the government in public hospitals and in providing training for more doctors and nurses. The Commonwealth will fund local hospitals directly for each service that they provide through local hospital networks. The price of each service will be determined by an independent umpire who will draw on expert advice and will strike an appropriate balance between access, clinical safety and efficiency. Because we understand that the cost of delivering health varies significantly around the country, regional and rural prices will not be set with city assumptions. The health reform commission estimates that the introduction of activity-based funding will lead to savings of—(Time expired)

Gavin Marshall (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Can the minister advise the Senate on how the government’s health reform plan will improve local autonomy and decision making? How will this arrangement improve outcomes for patients?

Joe Ludwig (Queensland, Australian Labor Party, Manager of Government Business in the Senate) Share this | Link to this | Hansard source

I thank the senator for his supplementary question about our health reform plan. Those opposite clearly do not want to talk about the health reform plan. The key here is that this government recognises that local hospitals are best placed to make decisions to meet local community health needs. That is why the government will hand control of hospitals to local hospital networks run by health and financial professionals rather than remote central bureaucracies.

One of the main messages we have heard from local doctors, nurses and allied health staff during the 103 consultations that have taken place around this country is the sense of alienation that they feel from the key decisions that affect their work. That is why the Rudd government will establish local hospital networks and pay them directly for each public hospital service that they provide. The network will be responsible for the day-to-day operations—(Time expired)

Honourable Senators:

Honourable senators interjecting—

John Hogg (President) Share this | Link to this | Hansard source

Order! The time for debating this is post question time.