3.7 - Corporate Governance in Portfolio Agencies

Functions

Under the Aged Care Act 1997 , all aged care homes must meet an accreditation requirement to be eligible to receive residential care subsidy. While the Department pays the residential care subsidy, it is the Agency that decides whether or not to accredit a home. The primary functions of the Agency are to:

• manage the residential aged care accreditation process using the Accreditation Standards;
• promote high quality care and help industry to improve service quality by identifying best practice and providing information, education and training to industry;
• monitor ongoing compliance within the Accreditation Standards; and liaise with the Department about homes that do not meet the Accreditation Standards.

Key Achievements for 2006–07

• 2,886 accredited homes as at the end of June 2007. Of these homes, 92.1 per cent had been awarded three years accreditation and only 2.9 per cent (85 homes) were identified as having some non-compliance.
• Delivered on the commitment to conduct at least one unannounced visit to every aged care facility in Australia by 30 June 2007 and introduced 12 assessment modules for conducting unannounced visits.
• Conducted education and information sharing activities, ran courses in assessing for accreditation and continued a seminar series on continuous improvement.
• Maintained the Agency's certification to the Australian quality assurance standard (ISO 9001:2000).

Functions

The primary functions of the Australian Institute of Health and Welfare relate to the collection and production of health-related and welfare-related information and statistics. The Australian Institute of Health and Welfare:

• identifies and meets the information needs of governments and the community to enable them to make informed decisions to improve the health and welfare of Australians;
• provides authoritative and timely information and analysis to the Commonwealth, and State and Territory governments and non-government clients through the collection, analysis and dissemination of national health, community services and housing assistance data; and
• develops, maintains and promotes, in conjunction with stakeholders, information standards for health, community services and housing assistance.

Key Achievements for 2006–07

• Developed a new corporate plan for 2007–2010 with greater emphasis on strengthening the Australian Institute of Health and Welfare's policy relevance.
• Published 140 reports on aspects of Australia's health and welfare.
• Entered into Memoranda of Understanding with the Australian Institute of Family Studies and the Australian Commission on Safety and Quality in Health Care to collaborate more closely.
• Completed planning and preparation for the Australian Institute of Health and Welfare's major biennial publications: Australia's Welfare 2007 and Australia's Health 2008 , which will be published in 2007–08.
• Continued to provide statistics and information services to support the work of the Department.

Functions

The main objective of the Australian Radiation Protection and Nuclear Safety Agency, under the Australian Radiation Protection and Nuclear Safety Act 1998 , is to protect the health and safety of people, and to protect the environment, from the harmful effects of radiation. The Australian Radiation Protection and Nuclear Safety Agency:

• is a resource of knowledge about ionizing and non-ionizing radiation;
• has a leading role in measuring radiation, researching the health effects of radiation exposure, and translating this knowledge into developing standards, guidelines and codes of practice;
• provides information and advice to the Government, the Parliament and the Australian public;
• provides some radiation protection services;
• learns about international best practice in radiation protection and nuclear safety, and contributes to international deliberations ensuring that Australia's interest and priorities are appropriately reflected;
• promotes national uniformity in radiation protection and nuclear safety in states and territories on major radiation issues such as the security of radioactive sources, emergency response and the safety of radioactive waste management; and
• is responsible for regulating all radiation and nuclear activities undertaken by Government entities.

Key Achievements for 2006–07

• Regulated the hot commissioning of the OPAL research reactor and the development of key regulatory management systems.
• Enhanced nuclear and radiological security through the establishment of radiation emergency response capacities both within Australia and in the region.
• Published radiation protection standards and codes dealing with occupational exposure to ultraviolet radiation, fixed radiation gauges, and the security of radioactive sources.
• Made real time ultraviolet radiation levels around Australia available on the Australian Radiation Protection and Nuclear Safety Agency website to assist the public to protect themselves from skin cancer.

Functions

Cancer Australia has been established to help reduce the impact of cancer for all Australians. It also aims to lessen the divide in outcomes for groups of people with cancer whose survival rates or cancer experiences are poorer, including Aboriginal and Torres Strait Islander peoples, people living in rural and regional areas, those from culturally and linguistically diverse backgrounds and people from low socioeconomic backgrounds.

Cancer Australia 's main function is to provide strategic leadership in cancer care by bringing together key cancer organisations. It is accountable to the Minister for Health and Ageing and:

• provides national leadership in cancer control;
• enhances support, information and participation in decision-making for people affected by cancer;
• guides improvements to cancer prevention and care, to ensure treatment is based on the best available evidence;
• coordinates and liaises with a wide range of groups and providers with an interest in cancer;
• makes recommendations to the Government about cancer policy and priorities; and
• oversees a dedicated budget for research into cancer.

During 2006–07, Cancer Australia contributed to its own specific Outcome 1 – National consistency in cancer prevention and care that is scientifically based.

Key Achievements for 2006–07

• Established strong governance structure and organisational infrastructure, supported by the National Advisory Council.
• Established strong advisory structures to consult with all stakeholders, involving more than 40 cancer consumer representatives.
• Conducted audits of national cancer control activity and cancer research to inform future priorities.
• Developed the Priority-driven Collaborative Cancer Research Scheme with community cancer research funding partners.
• Initiated and developed the Cancer Service Networks National Demonstration Program in which all states and the Northern Territory have agreed to take part.

Functions

Food Standards Australia New Zealand's core function is to develop, vary or review food standards, whether from application from an outside body or on its own initiative. In Australia, Food Standards Australia New Zealand develops food standards to cover the whole of the food supply chain, ‘from paddock to plate', for both the food manufacturing industry and primary producers. Other functions include:

• coordinating the surveillance of food available in Australia in consultation with State and Territory governments;
• conducting research and surveys in consultation with State and Territory governments;
• coordinating the recall of food;
• providing advice on the assessment of imported food;
• developing codes of practice;
• food safety education; and
• providing advice to the Minister for Health and Ageing and the Parliamentary Secretary on matters related to food.

Key Achievements for 2006–07

• Mandatory fortification of folic acid in bread approved by the Food Standards Australia New Zealand Board and endorsed by the Australia and New Zealand Food Regulation Ministerial Council.
• Increased capacity in the areas of social sciences, public health and epidemiology.
• Designed new processes to meet needs resulting from the amendment of the Food Standards Australia New Zealand Act 1991 .
• Surveyed stakeholder satisfaction with Food Standards Australia New Zealand performance.
• Implemented more efficient communication channels with state agencies and local government.

Functions

The General Practice Education and Training's primary function is to manage, promote, monitor and evaluate a national system of regionalised general practice education and vocational training across Australia on behalf of the Government. The Statement of Expectations issued by the Minister for Health and Ageing details expectations in relation to governance, outcomes and priorities in training delivery.

The company has developed the Outcomes for Regionalisation – Regional Training Provider Objectives which detail expectations in relation to business, training, innovation and performance for regional training providers. The General Practice Education and Training:

• operates the regionalised system known as the Australian General Practice Training program. This system aims to be responsive to the existing and changing needs of the community, including individual sections of the community, and to produce doctors who are capable of meeting community needs across Australia, in particular those of rural and remote areas;
• encourages the integration of education and training resources at a regional level and works with the professional colleges to ensure that the Australian General Practice Training is strategic and meets professional standards; and
• aims to position Australian General Practice Training as a world leader in general practice education and training, and provides strategic advice to the Government accordingly.

Key Achievements for 2006–07

• Statement of Expectation formulated and issued by the Minister for Health and Ageing. The Minister affirmed the General Practice Education and Training's governance arrangements as a company subject to the Commonwealth Authorities and Companies Act 1997 and the Corporations Act 2001 .
• More than 2,000 general practitioner registrars in training, reaching historically high levels, and reflecting the success of the regionalised training program and the General Practice Education and Training's operations.
• Provided training opportunities under the Enhanced Rural Training Framework to an increased number of registrars requiring support to prepare for rural practice.
• Established a three year funding agreement with the Government and put in place three year agreements with regional training providers.

The primary function of the National Blood Authority is to manage and coordinate Australia 's blood supply on behalf of all Australian governments in accordance with the National Blood Agreement. The National Blood Authority does this by:

• working collaboratively with the Government and State and Territory governments and other key stakeholders to ensure that Australia's blood supply is adequate, safe, secure and affordable;
• negotiating, entering into and managing national blood and blood products supply contracts; and
• providing advice and information to the Minister for Health and Ageing and the Australian Health Ministers' Conference through the Jurisdictional Blood Committee.

Key Achievements for 2006–07

• Managed the supply of blood and blood products to ensure products were available to meet the needs of all Australians, including effective intensive supply management and contingent supply arrangements for plasma derived factor VIII.
• Signed a Deed of Agreement with the Australian Red Cross Society for the services provided by the Australian Red Cross Blood Service.
• Established an independent Business Study to assess the operations of the Australian Red Cross Blood Service to determine fair and reasonable costs for products and services provided.
• Implemented initiatives to improve the appropriateness of blood use in Australia through strong engagement with the clinical community.
• Established new and revised arrangements for Defined Blood Products which resulted in the awarding of the Prime Minister's Silver Award for Excellence in Public Administration.

The National Health and Medical Research Council is the key agency for managing the Government's investment in health and medical research. It leads the development and maintenance of public and individual health standards and consolidates within a single national organisation the often independent functions of research funding and development of advice.

The functions of the National Health and Medical Research Council come from the statutory obligations conferred by the National Health and Medical Research Council Act 1992 which require the agency to:

• raise the standard of individual and public health throughout Australia ;
• foster the development of consistent health standards between the various states and territories;
• foster medical research and training and public health research and training throughout Australia ; and
• foster consideration of ethical issues relating to health.

The National Health and Medical Research Council works to ensure that Australia 's health system benefits from high quality health and medical research conducted at the highest ethical standard, well-developed research capabilities and sound evidence-based advice that informs health policy and practice.

Key Achievements for 2006–07

• Became an independent statutory agency within the Health and Ageing portfolio on 1   July   2006. The new National Health and Medical Research Council is defined as the Chief Executive Officer, the Council and Committees, and the staff of the National Health and Medical Research Council.
• Incorporated the National Institute of Clinical Studies as an institute of the National Health and Medical Research Council on 1 April 2007.
• Finalised the new Strategic Plan 2007–2009 which was endorsed by the Minister in February 2007.
• Held the first in a series of high level workshops tackling major health issues such as nanotechnology, air quality and complementary medicines.
• Issued the National Statement on Ethical Conduct in Human Research and, through the Australian Health Ethics Committee, revised the Ethical Guidelines for Assisted Reproduction and Research 2004 .

The main functions and powers of the Private Health Insurance Administration Council are to:

• establish a solvency standard and a capital adequacy standard to be complied with by private health insurers;
• give solvency directions and capital adequacy direction to private health insurers;
• administer the Risk Equalisation Trust Fund;
• undertake the supervisory functions in relation to private health insurers, including the appointment of inspectors and administrators;
• collect and disseminate financial and statistical data, including the tabling of an annual report to Parliament on the operations of private health insurers;
• levy private health insurers for the general administrative costs of the Private Health Insurance Administration Council;
• produce membership and coverage statistics quarterly. These statistics detail the proportion of the population with private health insurance. The gap statistics provide information about the out–of-pocket costs and availability of no-gap cover to consumers with private health insurance; and
• collect and disseminate information about private health insurance to allow consumers to make informed choices about the product.

Key Achievements for 2006–07

• Completed its program for the first round of reviews of private health insurers and continued to work with the Australian Prudential Regulatory Authority to undertake reviews of the larger private health insurance organisations.
• Commenced work on the revision of the consumer information brochure Insure? Not Sure? to take into account legislative changes.
• Developed and delivered a series of education programs for directors of private health insurance funds.
• Issued, to fund directors, a paper on best practice corporate governance guidelines.

The main functions of the Private Health Insurance Ombudsman are to:

• deal with complaints regarding private health insurance arrangements;
• investigate the procedures and practices of health funds;
• make recommendations to the Minister for Health and Ageing and the Department about private health insurance regulatory and industry practices;
• produce and publish the State of the Health Funds Report providing comparative information on the performance and service delivery of all registered organisations; and
• develop and maintain the <www.PrivateHealth.gov.au> website, which contains information for consumers about private health insurance and complying health insurance products.

Key Achievements for 2006–07

• Published the third annual State of the Health Funds Report , including individual performance reports for all funds.
• Developed the www.PrivateHealth.gov.au website to provide consumers with an independent, reliable source of information about private health insurance.

The main functions of the Professional Services Review are to:

• review cases of suspected inappropriate practice. On receipt of requests from Medicare Australia, the Professional Services Review examines health practitioners' conduct to ascertain whether or not they have practised inappropriately in relation to services that attract Medicare or Pharmaceutical benefits. The Professional Services Review Scheme covers services provided and/or initiated by medical and dental practitioners, optometrists, and medical services initiated by chiropractors, physiotherapists, and podiatrists;
• following review of a request, the Director of Professional Services Review may dismiss a request, negotiate an agreement with the practitioner, or establish a committee of professional peers to further investigate the practitioner's conduct; and
• where a committee finds that inappropriate practice has occurred, the committee's report is referred to an independent Determining Authority which will decide on sanctions to be imposed. Sanctions include reprimand, counselling, repayment of Medicare benefits and full and/or partial suspension from access to Medicare benefits for up to three years.

Key Achievements for 2006–07

• Commenced examination of over 25 new requests for review from Medicare Australia.
• Published a second annual Report to the Professions outlining the operation of the Professional Services Review Scheme and including details of cases where inappropriate practice had been found by the Professional Services Review committees.
• Participated in the Review of the Professional Services Review Scheme undertaken by the Department of Health and Ageing.