Bridget McKenzie (Victoria, National Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Minister for Health and Ageing, Senator Ludwig. I refer to the government's announcement of 38 new Medicare Locals to be established under a $477 million package designed to 'tailor solutions to the needs of local communities'. Can the minister explain how Medicare Locals effectively operate in Victoria, where we already have a healthcare system that has local people making decisions on local health care through our system of local hospital boards?

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

I thank Senator McKenzie for her question. There are 38 applicants who have been selected to form the next Medicare Locals. Medicare Locals are local organisations responsible for ensuring the primary healthcare system meets the needs of local communities. Medicare Locals will make it easier for patients to access services by better linking local GPs, nursing and other health services. They will work closely with local hospital networks to make sure the primary healthcare services and hospitals work together.

Medicare Locals will identify gaps in local services and coordinate services to address those gaps. While I do not take your word for it but I am sure that you are correct that there are Medicare-type locals in your area, there will always be areas where there are not, where there may be gaps in the system where Medicare Locals can fulfil that role. Eighteen Medicare Locals are being established from January 2012, with the remaining Medicare Locals to be established from July 2012, 20 of which will be announced. The Department of Health and Ageing will continue—this is the important part—to work with applicants in the remaining five Medicare Locals catchments to confirm their arrangements. So it is important across Australia, particularly Victoria and New South Wales, that they work with the Department of Health and Ageing to find areas where they can provide those services. This is good news for areas to fill gaps to ensure that primary healthcare systems do meet the demands of locals. The areas being looked at—such as Inner East Melbourne Medicare Local—are areas where they can be established— (Time expired)

Bridget McKenzie (Victoria, National Party) Share this | Link to this | Hansard source

Mr President, I have a supplementary question. Can the minister explain how the government will ensure that the implementation of the Medicare Locals policy will not remove local control of Victoria's smaller healthcare services, such as the Maldon Hospital, the Inglewood and Districts Health Service and the Heathcote Hospital, all within regional Victoria, and how the implementation of the policy will ensure that they will not become swamped by the much larger Medicare Locals regions?

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

I am not sure whether Senator McKenzie is arguing for a reduction in health care in her region. Medicare Locals are about increasing the availability of healthcare services, particularly primary healthcare services. That is unlike when the coalition was in government, when Mr Abbott removed a billion dollars from the healthcare budget.

What this government is doing is providing $493 million over four years to establish 62 Medicare Locals. It is about increasing the availability of primary healthcare services to regions. In Victoria particularly there are gaps. If you think there are no gaps then I would ask you to tell those organisations that are applying for and seeking to have Medicare Locals in their area that you do not want one. Medicare Locals are local organisations. They are responding for primary health care— (Time expired)

Bridget McKenzie (Victoria, National Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Given the unique governance structure of healthcare services in Victoria, can the minister outline what arrangements will be in place to ensure that Victoria's existing structures are recognised and not duplicated?

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

We are ensuring that we do get that uplift across not only Victoria but elsewhere. Once Medicare Locals are established, ongoing annual core funding of around $171 million will be available, which is more than double the annual core funding of approximately $85 million currently provided to the divisions of GPs.

The first 19 Medicare Locals commence in July 2011. It is about providing those services to those regions, about filling those gaps within the system. Victoria will continue to have a health and hospital system, but this is about the Commonwealth stepping in to provide local organisations to assist and meet the needs of local communities. If you do not want local communities to be supported through Medicare Locals then encourage them not to apply in your region, because Medicare Locals will make it easier for patients to access these services. (Time expired)

Chris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | Link to this | Hansard source

I ask that further questions be placed on the Notice Paper.