Chapter 3 - GOVERNMENT COMPANIES AND GOVERNMENT BUSINESS ENTERPRISES

Aged Care Standards and Accreditation Agency Ltd 1998-1999

1.96 The report was presented to the temporary chair of committees on 1 August 2001 and tabled in the Senate on 6 August 2001 and in the House of Representatives on 7 August 2001.

1.97 All reporting requirements are met, except, the report was not tabled within the required time. The Agency is an independent company limited by guarantee established under the Australian Securities and Investments Commission. It is the body established by the Commonwealth Government as the accreditation body under the Aged Care Act 1997. The report reflects the Agency’s first full financial year of operations.

1.98 The report noted that during 1988-99 the focus was on ‘setting a clear strategic direction for the Agency and ensuring appropriate infrastructure was established to support that direction, as well as putting into place interim processes’ (p.4). Regarding operational matters, the Agency reported on its core activities, albeit briefly, in relation to accreditation; assistance to services through education and training; and risk management (pp.15-19).

Aged Care Standards and Accreditation Agency Ltd 1999-2000

1.99 The report was presented to the temporary chair of committees on 2 August 2001 and tabled in the Senate on 6 August 2001 and in the House of Representatives on 7 August 2001.

1.100 All reporting requirements are met, except, the report was not tabled within the required time. Regarding performance reporting, the report notes a number of ‘achievements’ of the Agency, especially the ‘successful commencement’ of accreditation of services (p.2, see also pp.6-12). The report also highlights a number of areas where improvements are necessary, especially in the areas of accreditation processes and communication with services, residents and industry stakeholders (p.33). Strategies to address these concerns are discussed in the report (p.33).

1.101 Summary performance results provided in the report indicate that the target number of services to be accredited in 1999-2000 was not reached (33 percent were accredited, against a target figure of 50 per cent); and a target figure of 80 per cent of providers receiving regular newsletters and updates and other information was also not achieved (p.43). The Agency should have included more discussion of these performance results in the report and measures to address any deficiencies.

Aged Care Standards and Accreditation Agency Ltd 2000-2001

1.102 The report was presented to the temporary chair of committees on 4 October 2001 and tabled in the Senate on 12 February 2002 and in the House of Representatives on 13 February 2002, within the required 15 sitting days.

1.103 All reporting requirements are met. With regard to operational matters, the report noted that meeting the accreditation timetable was an important achievement for the Agency. From 1 January 2001 all aged care homes that applied for accreditation were accredited - some 2 938 homes (pp.12-13). The report also noted that an internal review of the Agency’s policies and procedures is being undertaken and that the review ‘will ensure that the next major cycle of accreditation benefits from the experiences of the past’ (p.3, see also p.4). Detailed information on the outcome of the review, and the Agency’s response to issues raised, should be included in future reports. The report notes that the Agency is supervising all accredited homes through spot checks, review audits and support contacts (p.3). While data is provided on these activities (pp.14-17) more information should be provided in future reports on the results and effectiveness of these activities and any consequent follow-up by the Agency or the Department.

1.104 The summary performance results in the report indicate that the target number of services to be accredited in 2000-01 of 100 per cent was achieved and that its target figure of 50 per cent of all accredited homes receiving accreditation for three years was exceeded - with 90 per cent of homes receiving accreditation for three years. (p.8). The report notes that performance targets relating to information dissemination/training on quality management and advice to the Minister and Department were only ‘partly achieved’ (p.8). It is not clear from the report what ‘partly achieved’ actually means, and additional information should be provided in future reports explaining in more precise terms when performance targets are not met.

1.105 While the report lists four main performance targets which provide some indication of performance outcomes, this would seem inadequate in presenting an overall picture of the operations and performance of the Agency (see p.8). Future reports need to consider reporting on additional performance indicators so that a more complete picture of performance outcomes is available.

1.106 As noted above, while this report (and previous reports) discusses performance in general terms, future reports should include more detailed discussion of performance results, including a more frank assessment of the overall operations of the Agency and a discussion of major issues that arise over the reporting period that impinge on its operations.

Health Services Australia Ltd (HSA) 2000-2001

1.107 The report was presented to the President on 29 October 2001 and tabled in the Senate on 12 February 2002 and in the House of Representatives on 13 February 2002, within the required 15 sitting days.

1.108 All reporting requirements are met. The report provides a concise overview of HSA services and operations.

1.109 The report stated that the company achieved an operating profit before tax of $9 million ($5.9 million after tax) in 2000-01, a significant increase over the last year’s result (p.3). The report noted that the company’s ‘ability to continue to grow and return sizeable profits is particularly significant given Australia’s increasingly competitive healthcare environment’ (p.9). The report stated that the priorities for the company in 2001-02 will be to retain and diversify its client base, enhance its service reputation and attract and retain high quality professional staff (p.5).

Medibank Private Ltd 2000-2001

1.110 The report was presented to the temporary chair of committees on 22 November 2001 and tabled in the Senate on 12 February 2002 and in the House of Representatives on 13 February 2002, within the required 15 sitting days.

1.111 All reporting requirements are met. The report provides a useful description of the functions and operations of Medibank Private.

1.112 The report commented that its updated corporate plan will guide its future strategic focus ‘from being merely a “bill payer” to providing access to health and wellbeing solutions. Developing strong partnerships with members and providers will play a pivotal role in this’ (p.10). The report stated that detailed implementation of the corporate plan will commence in 2002 (p.10).

1.113 The report indicates that Medibank Private increased its market share from 29.7 percent to 30.7 per cent over 2000-01 and maintains its position as the largest national private health insurer in Australia (p.10). Other useful performance indicators relating to Medibank Private are also provided in the report (p.12). It would also be useful to include in future reports some comparative industry performance data, as was provided in the last annual report.

Senator Sue Knowles

Chairman
March 2002

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