Victoria - Public Hospitals Policy and Funding Guidelines 1997-1998
Section A: Policy
Casemix Formula
The basic casemix funding formula will continue during 1997-98.
Variable Payments
Other Grants
- Unit DRG Payment
- Rural and Isolated Payment
- Nursing Home Type Payment
- Some Specified Grants
- Training and Development Grants
- Non-Admitted Patient Grant
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- Fixed Grant
- Non-Admitted Patient Grant
- Some Specified Grants
- Rural Specialties Services Grant
Unit DRG Paymentt
For hospital throughput up to the level prescribed by Target A, the variable case payment per patient treated is $1,327 per WIES5. Private patients will be paid at $939 per WIES5.
Target A Margin will be paid at $929 per WIES5.
Option WIES5 will be paid at $1,327 per public WIES5.
Same day medical targets for specified DRGs have been defined for each hospital and same day medical throughput in excess of these targets will not be funded.
Rural/Isolated Payment
The rural and isolated hospitals payments will be $14 and $35 per WIES5 respectively, and will apply to those hospitals designated in the Funding Guidelines.
Nursing Home Type Payment
Nursing home type patients in acute hospitals will be funded at $119 per day.
Rehabilitation in Designated Units
Rehabilitation in designated units will be funded at $334 and $278 per day.
Variable Payments: Non-Admitted Patients
VACS Variable Grant (Group A hospitals)
For non-admitted throughput up to target the case payment will be $105 per weighted encounter. Targets have been set at 1996-97 activity levels. Case payments have been calculated for the year as shown in the modelled budgets and will be paid on a quarterly basis. Case payments will only be paid for public encounters and, where activity varies significantly from the agreed profile of services, or fails to reach target, adjustments will be made.
Fixed Grant
Fixed grants have been standardised and reflect differences in infrastructure costs. The rates for grant are $749 per fixed WIES for Major Providers (i.e. Networks and Geelong Hospital), $847 for large rural Group B hospitals, $867 for smaller rural Group B and C hospitals, and $916 for rural Group D and E hospitals. The fixed grants are then adjusted for historic differences in superannuation costs. For details on the calculation of fixed WIES refer to Section C: Calculation of WIES.
Training and Development Grant
These grants will continue for 1997-98 with some minor modifications. The rates are detailed below:
Hospital Medical Officers Year 1, 2 and 3
Accredited Registrars
Clinical Academic Staff
Salaried Medical Officers
Grade 1 Registered Nurses
Post-graduate nurses
Pharmacy Trainees
Medical Radiation Interns
Medical Biophysics Trainees
Physiotherapists Grade 1, Year 2
Occupational Therapists Grade 1, Year 2
Speech Pathologists Grade 1, Year 2
Medical Laboratory Scientists
$32,964
$34,337
$38,152
$26,384
$18,320
$ 9,160
$23,133
$22,917
$12,973
$13,512
$13,512
$13,512
$11,111
Per EFT
Per EFT
Per EFT
Per EFT
Per EFT
Per EFT
Per EFT
Per EFT
Per EFT
Per EFT
Per EFT
Per EFT
Per EFT
Payments are made only for positions and staffing approved or otherwise recognised by the Department. Detailed definitions of the payment conditions for Training and Development Grants are included in the Funding Guidelines. In addition, there is an undergraduate allowance calculated as 10 per cent of the total training and development grant for Group A and B hospitals. Research grants will continue at the rates of $1,381,868 and $460,622.
Specified Grants
Approved specified grants will continue in 1997-98.
Other Grants: Non-Admitted Patients
Emergency Services Grant
The non-admitted Emergency Services Grant will be allocated separately to account for emergency services. The levels of funding are outlined in table 5.
Base Grant
In 1997-98 the Base Grant will comprise approximately 13 per cent of the total 1996-97 outpatient budget (including the amount allocated for the emergency services grant).
Teaching Grant
In recognition of the importance of non-admitted services for teaching and training a specified grant will be allocated as a teaching grant. For hospitals funded through VACS, the Teaching Grant is calculated on the basis of 8 per cent of the existing outpatient grant.
Allied Health Services Grant
This grant will be determined on the basis of allied health occasions of service as reported by hospitals to the Department at an average cost of $38 per occasion of service.
Other Grants
This includes services approved by the Clinical Panel for specific funding. In addition, the NESB Grant has been increased.
The Emergency Services Enhancement Program and the Elective Surgery Enhancement Program will continue in a modified form in 1997-98. Criteria for receiving the payments are outlined in appendix 3.
