Care economy needs flexible funding

The Productivity Commission has published its final inquiry report into delivering quality care more efficiently.

The commission’s recommendations focus on three key policy reform areas including:

• reform of quality and safety regulation for better cohesion
• embedding collaborative commissioning for better integration
• introducing a national framework to support government investment in prevention and early intervention.

The report calls for better alignment of quality and safety regulations of workers across the care economy – suggesting a single digital worker registration portal and the establishment of combined national worker screening checks across aged care and the National Disability Insurance Scheme.

It also recommends state, territory and federal governments collaborate to develop a common suitability test for providers and assess whether a single regulator across the aged care, NDIS and veterans’ care sectors would be beneficial.

The need for stronger joint governance arrangements was also flagged in the 126-page report, as was the recommendation of dedicated, outcomes-based funding.

The commission said governments should agree to outcomes-based funding so local hospital networks and primary health networks can pursue better collaboration with other organisations.

It recommends joint plans for collaborative commissioning programs be submitted to the Department of Health, Disability and Ageing. Then, federal, state and territory governments should provide LHNs and PHNs with sufficient dedicated funding to embed the programs.

Future funding should then be based on the achievement of agreed shared outcomes at the local level, such as a reduction in preventable hospitalisations.

The Independent Health and Aged Care Pricing Authority was listed as the entity to be tasked with designing such a mechanism.

The commission recommended the government develop a national prevention and early intervention framework too and establish an independent Prevention and Early Intervention Framework Advisory Board.

The report is one of five other inquiries the commission conducted, including on building a more skilled and adaptable workforce and better harnessing digital technology.

The complete report, and the full list of recommendations, can be read here.