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Research Note 50 1997-98

Public Health and Commonwealth-State Relations

Greg Lewis
Social Policy Group
29 June 1998

The primary objective of public health is the reduction of disease and the maintenance of the health of the population(1). The measles and pertussis (whooping cough) epidemics of the last few years illustrate Australia's capacity to respond to immediate public health problems. At the same time, the low childhood immunisation rates associated with these epidemics has demonstrated the lack of a national, strategic public health policy. Currently, there are around twenty separate Commonwealth public health strategies, most on specific issues(2).

The delivery of public health services has involved considerable Commonwealth-State relations difficulties in financing, determination of objectives and program implementation. Client stakeholder involvement in public health issues has been considerable, as in women's health and HIV/AIDS issues, and this has been influential in the allocative decisions on financing and program development.

It can be argued that a national public health strategy is needed that considers the social and economic causes of ill-health(3) and promotes public health approaches that aid the development of Australia's social capital. Canada and the UK are developing a health focus on the underlying environmental, social and economic contingencies associated with ill-health(4).

Cohesive Commonwealth-State relations and balanced stakeholder involvement are essential requirements for an Australian national public health agenda. Two recent developments in public health financing and administration, the National Public Health Partnership and the Public Health Outcome Funding Agreements are indicative of the impact of tensions in Commonwealth-State relations on the development of a coherent financing and policy framework.

 

The National Public Health Partnership

The National Public Health Partnership was established in December 1996 to facilitate public health collaboration and co-operation between the Commonwealth and States and Territories. The National Health and Medical Research Council and the Australian Institute of Health and Welfare are involved in the Partnership, and New Zealand has observer status(5).

The Partnership, which emerged through the Council of Australian Governments (COAG) reform process(6), is taking a considerable time to formalise. Whilst all States and Territories have contributed at officer level, Western Australia has not formalised its participation and New South Wales only did so in May 1998, eighteen months after the Partnership's initial establishment. Commonwealth-State financial relations, particularly in tying Medicare and public health financing to efficiency outputs, and the hesitancy of States in identifying public health roles and responsibilities, have been influential in the delays.

Under the Partnership, the Commonwealth is responsible for national public health policy and the States and Territories for public health services. The work program is managed by an all jurisdictions representative group with administrative support from the Victorian Government. Hopefully, the Partnership will achieve the stated objectives of enabling national, standardised public health approaches in the areas of legislative reform, resourcing, research, strategic development and program delivery, workforce development and in the provision of public health information(7). Reported achievements have included multilateral input to the Food Regulation Review(8) and draft reviews on public health planning and practice, research and information development, and co-ordination of national strategies. The value of the Partnership will depend on its success in establishing a framework for common agreement on national public health policies. An evaluation of the Partnership is to commence later this year.

Public health outcome funding agreements

The difficulties of Commonwealth-State financial relations have been evident in the slow progress of the negotiations over the Public Health Outcome Funding Agreements between the Commonwealth and States and Territories. The replacement of Specific Purpose Payments (SPPs) with broadbanded contracts for a number of public health programs was included in the 1997-98 and 1998-99 Budgets. Only four States and Territories have signed agreements; the Northern Territory in July 1997, Queensland and Tasmania in December 1997 and South Australia in January 1998. The quantum of funding under the Agreements and the associated performance targets have been major negotiation issues. Despite vigorous efforts by the Commonwealth, the other States and the ACT are still to sign(9). New South Wales only agreed in-principle to broadbanding in April 1998.

Public Health Agreements Base Funding (a)

State/Territory

1996-97 SPPs

$ million

1997-98 Budget

$ million

1998-99 Estimate

$ million

Queensland

$19.655

$16.448

$16.980

Tasmania

$3.804

$ 4.010

$ 4.389

South Australia

$9.292

$ 9.208

$ 9.975

Northern Territory

$2.768

$ 2.289

$ 2.516

(a) 1996-97 SPPs include HIV/AIDs, Indigenous health, bone marrow registers and other one-off funding not included in the Agreements. Funding for 1997-98 and 1998-99 based on 1996-97 SPP program funds.

 

Public health financing under the Agreements

Five women's health programs, the HIV/AIDS Matched Funding Program, the National Childhood Immunisation Program and the National Drug Strategy have been broadbanded. The Agreements include a funding base for each of the participating States and Territories and additional funding for vaccines dependent on the numbers purchased. The option for re-negotiation of funding in the event of target population changes is also included.

Focus on performance

States and Territories do not appear attracted by the stated primary benefit of the Agreements of flexible administration and financing(10). A major sticking point has been financing on the basis of agreed outputs and outcomes-the poor childhood immunisation levels of the past, for example, is indicative of the need for tighter accountability. The performance targets are mainly related to public health activity levels and the development of data, with some progress towards desired outcomes expected. The Queensland Agreement has performance targets for childhood immunisation, breast and cervical cancer screening and other women's health and birthing services, and for HIV/AIDS and the National Drug Strategy. The targets for breast cancer screening include progress towards national participation and quality standards, measured by screening detection rates, over a specified period.

States and Territories are not tied to specific activities or matching of funding but local priorities and high need populations are to be considered within the context of national priorities(11). Incentive payments are included for performance on agreed targets in relation to immunisation and communicable diseases and for demonstration projects on quality improvement in public health services delivery(12).

Conclusion

One academic commentator has identified Australia's public health agenda as:

  • understanding the determinants of health
  • identifying outbreaks of diseases and disease surveillance
  • developing and applying effective interventions for health and disease treatment, and
  • ensuring effective and efficient systems to deliver public health(13).

The effectiveness of the National Public Health Partnership in addressing the future of public health in Australia remains to be demonstrated. It would be fair to say that that the progress in the broadbanding of current programs through the Public Health Outcome Funding Agreements has been disappointing. Progress with the development of an effective national public health policy to underpin Australia's social capital may be some time coming.

 

Endnotes

  1. R. Beaglehole and R. Bonita, Public health at the crossroads, Cambridge University Press, Cambridge, 1997, p. 145.
  2. Department of Health and Family Services, Commonwealth - State arrangements for public health: The National Public Health Partnership and the Public Health Outcome Funding Agreements, 3 June 1998. (Available from www.health.gov.au/pubhlth/about/nphp.htm)
  3. R. Beaglehole and R. Bonita, op. cit., p. 76.
  4. 'Our healthy nation', British Medical Journal, 1998, Vol. 316, No. 7130, pp. 487-488 and National Forum on Health, Canada health action: building on the legacy, Ottawa, 1997.
  5. House of Representatives, Debates, 13 May 1998, p. 3320.
  6. J. W. Owen, 'Making gains in health', The Medical Journal of Australia, 1997, Vol. 166, No. 12, pp. 650-653.
  7. ibid.
  8. The draft report of the Blair review of State and Territory food regulations was issued for comment on 27 May 1998.
  9. Senate Community Affairs Legislation Committee, Senate Official Committee Hansard, Thursday 4 June 1998, pp. 270-271.
  10. Department of Health and Family Services, op. cit.
  11. ibid.
  12. ibid.
  13. J. Hall, 'An open letter to the Federal Minister for Health from Jane Hall, immediate past president', inTouch, 1996, Vol. 13, No. 2, pp. 1-7.

 

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