Process for Negotiating Flexible use of DHS Funds

Effective Planning

One of the key findings of the Flexible Funding project was that flexible service responses are dependent on an effective planning process. This involves organisations working with DHS Regional Offices and/or Programs during their service agreement negotiations to specify the:

• Most appropriate service response for targeted clients
• Negotiate the proportion of the budget to be attributed to these priorities, and
• Identify the nature of services to be provided.

In some circumstances, Regional Directors and Programs may need to exclude services from flexibility to ensure client access or for specific policy reasons.

The Plan of Service Intent Summary spreadsheet (attached below) is a tool that can be used by DHS staff and service providers when drafting a flexibility agreement. Information about the following is required for the development of a flexibility agreement:

• Rationale
• Client target group
• Details of the funding to be used flexibly
• Planned service model, processes, staffing
• Anticipated outcomes for clients

Plan of Service Intent Summary (PDF, 12kb)

The Process for Negotiating Flexible Use of DHS Funds

1. The service provider makes contact with the Regional Office about planned flexible use of DHS funds or current, informal flexible practice. Alternatively, DHS regional staff can ask the service provider about their flexible use of DHS funds during usual business contact.
2. The service provider and DHS regional staff members meet to discuss planned or current flexible use of DHS funds, including the nature of the planned or current service response and the impact of flexible use of DHS funds on:
   • Client access to services
   • Waiting lists
   • Local, regional and statewide services
   • Hospital demand
   • Specialist services
   • Disadvantaged communities.
3. DHS regional staff members liaise with the Flexibility Broker and relevant programs about the service provider's planned or current flexible practice in the context of local, regional and statewide priorities and service demand.
4. DHS regional staff members provide feedback to the service provider and reach agreement about flexible use of DHS funds.
5. DHS regional staff formalise the agreement in the Service Agreement using the Flexible Funding service plan template.
6. All stakeholders contribute to the evidence base about flexible practice: issues to be resolved and benefits to clients.

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