|Title:||Annual Review of Healthís Fees And Charges underpinned by Robust Costing Methods and Systems|
|Document ID:||Operational Directive OD 0550/14|
|Date of issue:||Wednesday, 27 August 2014|
|Status:||NO LONGER APPLICABLE|
|File number(s):||F-AA-01467; /10|
|Description:||This directive advises accountable authorities of the requirement to conduct regular reviews (at least once a year) of their fees and charges. The review is to be underpinned by robust costing systems to ensure that such fees and charges do not over-recover the cost of providing the service.|
|Legal requirements:||Financial Management Act 2006 - Treasurerís Instruction 810
|Applicable to:||All hospitals and health services|
|Period of effect:||from 30 June 2014 to 1 July 2019|
|Authorised by:||Professor Bryant Stokes, A/Director General, Department of Health WA, 10-Aug-2014|
|Print version:||View print version|
Annual Review of Healthís Fees And Charges underpinned by Robust Costing Methods and Systems
The purpose of this directive is to provide instruction to accountable directorates on the review and setting of Department of Health (DOH) fees. Treasurers’ Instruction 810 requires the DOH to conduct a review of corporate, hospital and health service fees on an annual basis. To either establish a fee or conduct a review, it’s mandatory to develop robust costing systems to support setting fees by regulation. To assist, Government has published guidelines on costing services: http://www.treasury.wa.gov.au/cms/uploadedFiles/costing_pricing_government_services_april2007.pdf
Correspondence from the Office of Auditor General (OAG) and the Joint Standing Committee on Delegated Legislation (JSCDL) to the Minister for Health and the Director General has provided instruction for amendments to subsidiary legislation (i.e. regulations) requiring:
The Hospitals and Health Services Act 1927 details that no fee, charge or impost on an external entity, person or private business maybe made unless supported by regulation or determination.
In the setting of each regulated fee, the following principles should be adhered to in conducting a robust costing methodology and in the development of business directorates’ costing systems:
The use of Consumer Price Index (CPI) to uplift last year’s rate to set a future fee is contingent on demonstrating that the use of CPI does not result in over-recovering costs and still requires the accountable business directorate to undertake a proper costing to detail the cost of service and a fee’s cost recovery. Any fee, charge or impost levied, without undertaking proper costing and the provision of documentation, maybe disallowed by the JSCDL.
Each accountable business unit is responsible for the costing system and facilitation of the legal gazette relevant to their fees.
Professor Bryant Stokes
This circular last updated: Wednesday, 27 August 2014 at 11:33am