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Publication:    The Australian
Date:    23 March 2010
Section:    National
   

PM will change health funding policy to save regional hospitals

Article excerpt:

KEVIN Rudd will consider changes to his public hospital takeover plan over fears of cost rises and closures of regional hospitals. The Prime Minister conceded that the Victorian model of charging for services had not worked for country hospitals and pledged to change his system if the same problems emerged. Under Mr Rudd's scheme all hospitals would be funded on the basis of services they provide, but the case mix system had to be changed in Victoria because regional hospitals were disadvantaged.

“What we would propose ... is that it would take into account all the local costs in rural areas and the rest to make sure it works,” he said during the debate at the National Press Club. “But if that doesn't then of course we'd look at a form of national block funding which was able to underpin the continuation of smaller rural hospitals in the future. They have a vital part in the future delivery of health services to Australians.”

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