Table 1 Key elements of Commonwealth-state hospital funding agreements
Agreement | Political Objective | Key Principles |
|---|---|---|
1984–88 : Labor (Medicare Compensation Agreement) | Introducing Medicare | Compensation for cost increases and revenue losses |
1988–93 : Labor (Medicare Agreement) | Consolidating Medicare Growth and reform of public provision | Incentives for system reform Penalties for lower public:private bed day shares and excess private medical service use |
1993–98 : Labor (Medicare Agreement) | Entrenching Medicare Expansion of public provision | Reward for relatively higher levels of public provision and for increasing public provision relative to other states Post 1996, accountability for negotiated outcomes |
1998–2003 : Coalition (Australian Health Care Agreement) | Continuing with Medicare Increased Commonwealth funding with increased accountability for states | Increased accountability on states for activity level changes Increased clarity of Commonwealth responsibility if health insurance levels change |
2003–08 : Coalition (Australian Health Care Agreement) | Continuing with Medicare Slowed Commonwealth funding growth Increased accountability for states | Improved reporting, including of state spending Requirement on states at least to match Commonwealth funding increases |