Purchasing and Resource Allocation Policy Framework
View the PDF document of the Purchasing and Resource Allocation Policy Framework.
1. Policy framework statement
The Purchasing and Resource Allocation Policy Framework specifies the financial and legislative framework that all Health Service Providers (HSPs) must comply with in order to ensure effective and consistent approaches to meet State Government budgeting and funding procedures and requirements, and purchasing and resource allocation processes, across the WA health system.
The Director General (DG) of the Department of Health is the System Manager responsible for the overall management, strategic direction and stewardship of the WA health system. The DG will use policy frameworks to ensure a consistent approach to a range of matters undertaken by HSPs. Policy frameworks must be complied with and implemented as a part of ongoing operations.
The purpose of this policy framework is to ensure:
- Compliance with the mandatory financial and legislative requirements that underpins the State Government’s budgeting and funding procedures under the Government Financial Responsibility Act 2000 and the Financial Management Act 2006.
- Clarity of mandatory roles and responsibilities of the DG of the Department of Health as System Manager, the Mental Health Commission (MHC) as purchaser and the HSPs in the context of purchasing and resource allocation.
- Required information to be provided to the System Manager from HSPs is clearly defined to ensure compliance with:
- State Government budgeting and funding processes
- Activity Based Management (ABM) requirements including the counting and classification processes for the admission, readmission, discharge and transfer of patients
- Australian Government funding submission requirements including to the Department of Veteran Affairs, Administrator of the National Health Funding Pool and Independent Hospital Pricing Authority
- Development of benchmarking standards for public-private providers
- The fee schedule and procedures for Visiting Medical Practitioners working across the WA health system is outlined.
- Explanation is provided of key systemwide budget, purchasing and resource allocation processes including budget and activity settings and the development of service agreements.
This policy framework is binding on each HSP to which it applies or relates.
The key principles that underpin this policy framework are:
The use of financial resources, decisions and actions must be available and able to be communicated to external reviewers.
Financial management decisions must not compromise long-term financial sustainability.
The use of financial resources responsibly, for the purposes that they have been provided, with adequate planning, control and consideration of risks.
The management of financial resources must be documented and reported, in a clear, consistent and accurate manner.
5. Legislative context
The Health Services Act 2016 refers to policy frameworks in ss. 26-27 and s. 34(2)(c).
Other relevant parts in the Act that relate specifically to this policy framework include s. 34(2)(b) and Part 5.
The legislation below, may also apply:
- Financial Management Act 2006
- Government Financial Responsibility Act 2000
- National Health Reform Act 2011
6. Mandatory requirements
Under this policy framework HSPs must comply with all mandatory requirements* including:
- Acute Care Certification - OD 0450/13
- Arrangements for the Provision and Charging for the Department of Veteransí Affairs (DVA) Entitled Persons - OD 0525/14
- Arrangements for the Provision and Charging of Aids or Equipment, Home Assessment and Home Modification for the Department of Veterans' Affairs (DVA) Entitled Persons - OD 0494/14
- Billing Arrangements for Selected Services Provided to DVA Entitled Persons - OD 0495/14
- Clinical Information Audit Program Ė Hospital Activity Reporting - OD 0201/09
- DVA Patient Election Form - OD 0496/14
- Hospital Transfer Policy for DVA Entitled Persons From Public to Private Hospitals - OD 0497/14
- Identification of DVA Entitled Persons. - OD 0498/14
- Inter-Hospital Transport Arrangements for DVA Entitled Persons - OD 0499/14
- Service Activity Amendment Framework 2015-2016
- Visiting Medical Practitioner Medical Account Assessment System (MAAS) - Administrative Procedures and Item Number Descriptions
- Western Australian Government Medical Services Schedule (WAGMSS) Fees
*Any mandatory requirement document that references the Hospitals and Health Act 1927 must be interpreted as a requirement under the Health Services Act 2016.
7. Supporting information
The following documents support and inform the implementation of the mandatory requirements:
- National Health Reform Agreement (NHRA) 2011
- Service Activity Amendment Framework Process Guide
- WA Department of Treasury Financial Administration Bookcase
The following documents can be accessed via http://ww2.health.wa.gov.au/About-us/Service-agreements
- Funding and Purchasing Guidelines 2016-17
- Service Activity Amendment Guide.
8. Policy framework custodian
Assistant Director General
Purchasing and System Performance Division
Enquiries relating to this policy framework may be directed to:
This policy framework will be reviewed as required to ensure relevance and recency. At a minimum this policy framework will be reviewed within two years after first issue and at least every three years thereafter.
|Version||Effective from||Effective to||Amendment(s)|
|1||1 July 2016||1 July 2017||Original version|
|2||1 July 2017||Current||Rescinded OD 0540/14 from Mandatory Requirements, superseded by MP 0058/17 (under Information Management Policy Framework)|
This policy framework has been approved and issued by the Director General of the Department of Health as the System Manager.
|Approval by||Dr David Russell-Weisz, Director General, Department of Health|
|Approval date||1 July 2016|
|Date published||1 July 2017|
|Dept. File No||F-AA-40156|
This policy framework is binding on those to whom it applies or relates. Implementation at a local level will be subject to audit.
|Applicability||Under Section 26 of the Health Services Act 2016, policy frameworks may apply to:
|Health Service Provider||Health Service Provider means a health service provider established under s. 32 of the Health Services Act 2016 and may include North Metropolitan Health Service (NMHS), South Metropolitan Health Service (SMHS), Child and Adolescent Health Service (CAHS), WA Country Health Service (WACHS), East Metropolitan Health Service (EMHS), Quadriplegic Centre and Health Support Services (HSS).|
|WA health system||The WA health system is comprised of the Department of Health, Health Service Providers (NMHS, SMHS, CAHS, WACHS, EMHS, Quadriplegic Centre and HSS) and to the extent that contracted health entities provide health services to the State, the contracted health entities.|