What has changed?
The PHFA previously had three components:
- funding for direct client services, based on a unit price equivalent to an hour of service delivery
- funding for health promotion activities
- a development and resourcing (D&R) component that supports infrastructure costs of agency operations.
At the time of the introduction of the PHFA the D&R component was seen as a temporary approach to funding agency overheads, pending a more detailed review of this approach. Due to its complexity, there has been inconsistency in the treatment of D&R across regional offices and Primary Health funded organisations, leading to a lack of transparency and equity.
A revision of the PHFA with the following key elements commenced on 1 July 2007.
- Development and resourcing costs incorporated into unit prices for direct care service delivery and into health promotion block funding.
- The new unit prices for direct care service delivery has been aligned with HACC unit prices for like services. There is one unit price for Allied Health and Counselling and a separate unit price for Nursing.
- Health Promotion is block funded and more meaningful performance measures that reflect a planned approach to health promotion will be developed.
- There is a direct relationship between funding levels and performance targets for direct care services. This has been achieved by adjusting targets and not by adjusting funding.
- From July 2009, following a two-year transition period, a recall policy, consistent with the HACC recall policy, will be introduced.
- DHS regional offices will work with agencies during the two-year transition period to achieve a direct relationship between direct care funding and targets
- The Community Health and HACC fees policies and fee levels will be aligned.