6. Research / Training & Development

6.1 Research Funding

Victoria is recognised as a leader in the field of medical research in Australia. Research grants have been provided since 1 July 1993 to the major teaching hospitals as part of the Training and Development Grants. These grants will continue in 1999 - 2000. In September 1998, the Minister for Health and Aged Care announced additional funding of $10 million per annum over five years negotiated through the Australian Health Care Agreement to further support medical research and teaching in Victorian public hospitals. In 1999 - 2000, these funds will be continued and allocated on the same basis as in 1998 - 99.

During 1999 - 2000, a greater emphasis will be placed on accountability on the manner in which hospital based research funding is spent. This is consistent with the strategic directions for medical and public health research and development in Victoria outlined in Investing in Health, released by the Minister for Health and Aged Care in December 1998. A review of the actual costs of research support, commenced in 1998 - 99, will be completed in 1999 - 2000.

The Infrastructure Funding Program, administered by the Public Health and Development Division of the Department, provides infrastructure funding support for 21 medical research institutes. As part of the implementation of the Department’s strategy for medical and public health research and development in Victoria, the Department assessed the infrastructure costs of the medical research institutes through a special survey.

Recurrent funding of $2 million managed by the Public Health and Development Division will be provided for targetted health services and public health research initiatives. Capital funding for independent or co-located medical research institutes will continue to be considered on an annual basis as part of the overall capital program.

6.2 Training and Development

The Training and Development Grant is paid to hospitals to recognise the additional costs of those hospitals with teaching, training and research activities. With the exception of payments for undergraduate allied health eduction, the basic structure of the Training and Development Grants will not be altered in 1999 - 2000. Details on the specific rates used to calculate the grant are outlined in Chapter 13 Casemix Formula.

6.2.1 Medical

Each year hospitals are surveyed to record the number and variety of medical training positions to ensure adequate and appropriate training positions for the medical workforce. No changes are proposed for funding levels in 1999 - 2000. During 1999 - 2000, work will continue on linking the medical component of the Grant to an evaluation of hospital performance in relation to training to ensure that expenditure of the Grant results in training of an acceptable quality.

6.2.2 Nursing

This component of the Training and Development Grant covers Graduate Nurse Programs, Post Graduate Nurse Programs, student midwives, continuing nurse education and rural supplements. No changes will be made to the level of funding provided to hospitals for the clinical placement component for nurses undertaking formal postgraduate courses. For the Graduate Nurse, Student Midwife and Postgraduate Programs, approval must be sought from the Department of Human Services for any increase in numbers over and above projected numbers submitted at the start of the academic year. The Training & Development Grant includes a component to fund the cost associated with clinical placements of undergraduate students. This is being currently reviewed with the aim of developing an output based formula for allocation.

The pool of funds for the continuing nurse education initiative will remain at $4 million per annum. This is an ongoing program which aims to contribute to meeting the cost to hospitals in running continuing education programs. As for last year, networks and hospitals will be invited to submit detailed business plans for the year 2000, according to program guidelines. The funding carries a requirement for a program evaluation, including detailed financial acquittals, to be provided to the department.

A supplement of $250 per nurse will continue to be allocated to rural hospitals that offer specialist nursing courses in collaboration with a university to support costs incurred by nurses who must undertake a clinical placement a significant distance from the hospital where they are employed.

6.2.3 Allied Health

During 1998 - 99, the Allied Health Training and Development Grant Reference Group reviewed the undergraduate allied health component of the Training and Development Grant. In 1999 - 2000, 10 per cent of the existing undergraduate allowance ($1 million) will be allocated to allied health undergraduate teaching and supervision. It includes audiology, dietetics, health information management, orthoptics, occupational therapy, pharmacy, physiotherapy, podiatry, prosthetics, radiation science, social work and speech therapy. It does not cover post-graduate program funding (intern year) or the industry based learning scheme which encompass medical biophysics and medical laboratory sciences. These schemes continue as in previous years.

The changes to allied health allocation are to:

• Improve the accountability of funding for undergraduate allied health education;
• Improve allocation of funding across hospitals;
• Assist in workforce planning activities;
• Support the continuation of an experienced workforce especially in areas that are currently under-supplied; and
• Continue to provide hospitals with the flexibility to accept allied health undergraduates.

Fixed grants have been specified for hospitals and Networks on the basis of the number of days allied health undergraduates spent in Victorian acute public hospitals in 1998. This information has been provided by the relevant Universities. It is expected that an annual data collection and monitoring process will be established, with the possible inclusion of a minimum threshold for funding purposes.