2000-2001
Portfolio Additional Estimates Statements 2000-01 - Part B - Portfolio Overview
These statements have been developed, and are submitted to the parliament, as a statement on the funding requirements being sought for the portfolio.
There have been no major changes to the focus of the portfolio since the 2000-2001 Budget. The portfolio will continue to address the health and aged care needs of the Australian community, and to respond to Government policy priorities in this arena.
The Department of Health and Aged Care pursues the achievement of the portfolio outcomes in association with other agencies in the portfolio: the Health Insurance Commission, Australian Hearing Services, the Aged Care Standards and Accreditation Agency, the National Health and Medical Research Council, the Private Health Insurance Administration Council, the Private Health Insurance Ombudsman, the Professional Services Review Scheme, the Australia New Zealand Food Authority, the Australian Institute of Health and Welfare and the Australian Radiation Protection and Nuclear Safety Authority.
The Portfolio of Health and Aged Care has a diverse set of responsibilities, but throughout there is a common purpose, which is reflected in the mission statement:
- To lead the development of Australia's health and aged care system
- provides expert policy advice and analysis and other services to the Government;
- works with consumers, communities, providers, peak bodies, industry groups, professional organisations, State and Territory Governments and portfolio agencies through consultation and collaboration;
- promotes healthy living and communicates information about health and aged care;
- manages the Commonwealth's health and aged care programs to ensure the provision of quality, cost-effective care; and
- safeguards health, safety and equity, in a way that imposes the minimum necessary regulatory burden.
- A world class health and aged care system for all Australians
- measurable improvements in the health status of the Australian population, particularly our most disadvantaged groups;
- an active and healthy population with choice for individuals to manage their own health care;
- a nationally coherent health and aged care system which provides both choice and universal access and allows regional and state variations;
- high quality services that reflect evidence of best practice including a systematic approach to improvement through trials and innovation;
- quality aged care and choice for individuals to manage their own ageing; and
- a targeted approached to disease management and to addressing health risks of particular individuals and communities.
- continued improvements in life expectancy for both males and females over time;
- further reductions in infant mortality rates over time;
- additional improvements in health expectancy rates over time;
- improved life expectancy, health expectancy and infant mortality rates for Aboriginal and Torres Strait Islanders so that they are comparable with the general population; and
- improved life expectancy, health expectancy and infant mortality rates for low income Australians so that they are comparable with the general population.
Additional estimates and variations - portfolio level
Additional estimates are only being sought for the Department of Health and Aged Care within this portfolio. Funding for other agencies will remain unchanged.The Department of Health and Aged Care is seeking an increase of $280.569 million in appropriations, composed of the following:
- $200.104 million in administered expenses;
- $30.891 million in specific purpose payments to the States and Territories;
- $12.777 million in departmental outputs;
- a saving of $20.188 million in equity and injections; and
- $56.985 million in administered capital.
Map 1: Structure of outcomes for the portfolio
| Outcome | Agencies or divisions responsible |
| 1. Population health and safety To protect and promote the health of all Australians and minimise the incidence of preventable mortality, illness, injury and disability. |
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| 2. Access to Medicare Access through Medicare to cost-effective medical services, medicines and acute health care for all Australians. |
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| 3. Enhanced quality of life for older Australians Support for healthy ageing for older Australians and quality and cost-effective care for frail older people and support for their carers. |
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| 4. Quality health care Improved quality, integration and effectiveness of health care. |
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| 5. Rural health care Improved health for Australians living in regional, rural and remote locations. |
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| 6. Hearing services To reduce the consequence of hearing loss for eligible Australians and the incidence of hearing loss in the broader community. |
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| 7. Aboriginal and Torres Strait Islander health Improved health status for Aboriginal and Torres Strait Islander peoples. |
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| 8. Choice through private health A viable private health industry to improve the choice of health services for Australians. |
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| 9. Health investment Knowledge, information and training for developing better strategies to improve the health of Australians. |
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* These agencies contribute to the outcome through a purchaser/provider relationship with the department.
Measures: Agency summary
Table B1: Summary of measures since the 2000-01 Budget
| Measure | Outcome | Appropriations | Appropriations | Appropriations | Appropriations | ||||||||
| 2000-01 | 2001-02 |  | 2002-03 | 2003-04 | |||||||||
| | | ($'000) | | | ($'000) | | | ($'000) | | | ($'000) | |
| | Admin items | Dept outputs | Total | Admin items | Dept outputs | Total | Admin items | Dept outputs | Total | Admin items | Dept outputs | Total |
| Post-Budget measures included in Additional Estimates | | | | | | | | | |||||
| Measles, mumps and rubella vaccine for young adults | 1 | 19,800 | - | 19,800 | - | - | - | - | - | - | - | - | - |
| Research Bio 21 | 1 | - | - | - | - | - | - | - | - | - | - | - | - |
| List celecoxib on the Pharmaceutical Benefits Scheme | 2 | 36,760 | - | 36,760 | 49,626 | | 49,626 | 62,998 | | 62,998 | 65,518 | | 65,518 |
| New Community Pharmacy Agreement (cross-portfolio measure) | 2 | 5,500 | 4,400 | 9,900 | -5,000 | 2,000 | -3,000 | -4,600 | 1,300 | -3,300 | -13,300 | 1,000 | -12,300 |
| Exceptional Circumstances assistance for farmers in Tasmania - Central Highlands | 2 | 26 | - | 26 | 24 | - | 24 | - | - | - | - | - | - |
| Modified clawback arrangements under the Australian Health Care Agreements | 2 | - | - | - | - | - | - | - | - | - | - | - | - |
| Establishment of the Office of the Commissioner for Complaints | 3 | - | - | - | - | - | - | - | - | - | - | - | - |
| Introduction of parity pricing in the Hearing Services Programme | 6 | 8,410 | - | 8,410 | 8,520 | - | 8,520 | 8,900 | - | 8,900 | 8,900 | - | 8,900 |
| Post-Budget Measures not included in Additional Estimates | |||||||||||||
| Subsidy of medical foods | 1 | - | - | - | 2,472 | 205 | 2,677 | 2,529 | 210 | 2,739 | 2,587 | 214 | 2,801 |
| Prevention of Q Fever in meat and agricultural workers | 1 | 1,138 | - | 1,138 | 2,958 | - | 2,958 | 455 | - | 455 | - | - | - |
| Exceptional Circumstances assistance in Monaro B and C, and East Gippsland | 2 | - | - | - | - | - | - | - | - | - | - | - | - |
| Increased Medicare Rebate for Other Medical Practitioners | 2 | 3,806 | - | 3,806 | 8,495 | - | 8,495 | 9,271 | - | 9,271 | 9,918 | - | 9,918 |
Breakdown of additional estimates by appropriations bill
Table B2: Appropriation Bill (No. 3) 2000-01
Table B2 (cont): Appropriation Bill (No. 3) 2000-01
Table B3: Appropriation Bill (No. 4) 2000-01
Table B4: Special Appropriations
Summary of agency savings
Savings from annual appropriations of $10.172 million have been identified within the Department of Health and Aged Care. These savings, which are shown below in aggregate for bill and outcome combinations, relate to a transfer of funds from Outcome 5 to Outcome 4 for the Allied Health Service; a carryover of funds to future years for the Army-ATSIC Community Assistance Programme under Outcome 7; and a reversal of a rephasing of 1999-2000 funds under Outcome 1. A more detailed explanation of these adjustments can be found in the relevant outcome chapter.
| T | Transfer appropriation monies across outcomes | $7.770 million |
| C | Carryover of funds to future years | $0.313 million |
| R | Reversal of rephasing sought at Budget | $2.089 million |
| Total agency savings | $10.172 million | |
Variations to revenue from other sources through net annotated (Section 31) receipts
Table B5: Changes to net annotated appropriations (Section 31) receipts
Additional Estimates resourcing for all outcomes and output groups
The following diagram shows the relationship between the Health and Aged Care portfolio outcomes and the contributing outputs of the department and portfolio agencies. The diagram also summarises the resource allocation sought at Additional Estimates for departmental expenses and administered expenses for each outcome. Where no dollar amounts are provided for an output group or agency indicates that no additional funding is being sought at Additional Estimates.Map 2: Outcomes and output groups for the agency
The department has grouped its outputs into six standard output groups: services to the Ministers and Parliament, national leadership, information, program management, regulatory activity, and direct delivery of services. A description of each of the standard output groups is provided below.
Portfolio agencies other than the department were given the opportunity to develop independent output groups to define their outputs, or to use standard departmental output groups. While some agencies have used the standard groups, most have developed their own groups, or used a combination of unique groups and standard groups. The Australian Radiation Protection and Nuclear Safety Agency has developed a single output group unique to that agency. The Australia New Zealand Food Authority chose to use the output groups the department used in 1999-2000. Both the Private Health Insurance Administration Council and the Private Health Insurance Ombudsman have chosen to develop one unique group as well as using one of the standard groups. The Australian Institute of Health and Welfare has three output groups: one is unique to the Institute and the other two are slight variations on the departmental groups.
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Departmental output groups: standard descriptions and examples of outputs
- Services to the Ministers and Parliament
- the provision of a policy advice service including: monitoring, analysing and reporting to Ministers on specific issues; research and providing Ministers with policy advice. The outputs provided span new policy proposals, budget packages, Cabinet Submissions and Memoranda, new legislation; and
- the provision of ministerial services, including: ministerial correspondence, Minutes to the Minister, Question Time Briefs, Questions on Notice, ministerial speeches, media releases, ministerial launches, briefings requests from the Ministers' offices, escorting ministerial delegations, providing information to and appearing before Parliamentary committees, Portfolio Budget Statements and Annual Reports.
- National leadership
- Information
- Program management
- Regulatory activity
- Direct delivery of services
- The department has received funding of $1.773 million in 2000-01 in relation to the capital use charge that will be payable by the Department of Health and Aged Care on its equity (net assets) at the end of the financial year. Funding for the capital use charge is based on opening equity and is included in the department's outputs appropriation. The capital use charge is currently set at 12%.
- A parameter adjustment of $0.991 million in 2000-01. Departmental estimates are presented in the prices of the future period to which they relate. Departmental expenses at current prices are typically multiplied by an index of expected wage costs and the adjustment included as a parameter variation.
- The department's Comcover premium has been reassessed at $0.711 million, a reduction of $0.789 million from the Budget estimate.
The department has a key role in leading the ongoing development of the Australian health and aged care system. This output group provides for the products and services produced by the department in its dealings with States, Territories and peak bodies in the development and implementation of national strategies, collaborative activities and infrastructure. Examples of outputs in this group include: representing the Government at international forums; arranging and attending seminars and consultative forums on strategic national health and aged care issues; development of national minimum data sets; coordinating research and development activities on behalf of Commonwealth-State Ministerial councils; and providing secretariat services for these councils.
The department provides a large amount of information to the public and third party service providers. The information services include public awareness campaigns and telephone information lines, as well as, more specific products, such as: Internet sites, newsletters, statistical and other publications, and schedules for the Medicare Benefits Pharmaceutical Benefits Schemes.
A significant proportion of the department's resources are required to manage the approximately $23 billion administered by the department. In order to ensure that these resources are used efficiently and effectively to achieve the outcomes for which they were appropriated the department provides a comprehensive program management service. This service covers the development and management of contracts and grants for administered funds and the payment of administered funds. It includes making funding recommendations to the Ministers, developing grant guidelines and tender briefs, renegotiating funding or contractual agreements, monitoring contracts, making payments, ensuring acquittals are received, resolving provider concerns with funding arrangements, and program evaluation. Top of page
The department has an important role in regulating the health and aged care system in a way that imposes minimal regulatory burden while safeguarding health and safety. The outputs produced by the department include amendments to regulations relating to the Medicare Benefits Scheme, the Pharmaceutical Benefits Scheme and medicines and medical devices for sale in the Australian market, issuing licences, approving service providers, verifying that services meet national quality standards, testing samples, administering sanctions under legislation, complaints resolution services, and Freedom of Information administration.
This output group covers the direct service delivery of services to the community. The department contracts the Health Insurance Commission to make a variety of payments to the public and service providers through a purchaser provider agreement. These payments relate to the Medicare Benefits and Pharmaceutical Benefits schemes and private health insurance. In addition, the department issues hearing service vouchers to the public.
