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Research Note 35 1996-97

Palliative Care in Australia

Greg Clarke
Social Policy Group
March 1997


Palliative Care in Australia

    The focus of palliative care is neither to hasten nor postpone death. It provides relief from pain and other distressing symptoms and integrates the psychological and spiritual aspects of care. Furthermore, it offers a support system to help relatives and friends cope during the patient's illness and bereavement.

    [Edmonton (Canada) Palliative Care Program]

People suffering with progressive diseases whose illness is recognised as being no longer curable may be offered palliative care: coordinated, active, total care given to patients and their families in order to concentrate on the quality of life and the alleviation of distressing symptoms.

At present it is not clear exactly what palliative care services are offered across Australia, nor how they are funded. There are some identifiable palliative care programs, but many other services have palliative elements. For example In New South Wales, palliative and curative treatment is provided across a wide range of programs, while in Queensland all palliative care has been identified and separated from other care elements. However, in many instances these elements have not been isolated and data has not been collected on them. States and Territories are now assessing the extent and effectiveness of their expenditure on palliative care.

Commonwealth Involvement

Federally, the Commonwealth contributes towards the cost of a wide range of palliative care services provided by States and Territories in a variety of settings including the home, hospices and acute care hospitals. The way in which these services are provided varies widely, but most take an holistic approach which addresses patients' and their carers' psychological and pastoral needs, provides bereavement support and promotes participation in decision making relating to appropriate care.

The Commonwealth currently uses two means to distribute funding for palliative care. There is a four-year Palliative Care Program (PCP) commenced in 1993-94 which ends this year. There is also a palliative care component to hospital funding grants under Schedule G of the Medicare Hospital Agreements.

Palliative Care Program

In the 1993-94 Budget, the Government announced a four-year program to provide palliative care costing $55 million. The program was designed to maximise the quality of life of people suffering terminal illness, to avoid inappropriate hospital admissions and to provide support to families and carers. Most of the $55 million was allocated to State and Territory Governments, but some States have not taken up their full funding allocations. To date, this has resulted in an underspending of some $8.5 million of this component of the PCP.

Funding under the PCP has enabled some States to review the present and future delivery of their palliative care services. Queensland and Victoria have produced reports on their findings and have developed options for future delivery of palliative care services within their States.

$4 million of PCP funding has been retained by the Commonwealth for direct support to projects of national significance. One such project is the construction of a Palliative Care National Minimum Dataset, which will allow national monitoring of palliative care provision. The project is being undertaken by the Victorian Department of Health and Community Services in conjunction with other Government departments, the Australian Institute of Health and Welfare and the Australian Association of Hospice and Palliative Care.

Medicare Agreement (Schedule G)

Funds allocated to States and Territories for hospitals under Schedule G of the Medicare Agreements are based on formulae contained in the Agreements and are subject to annual Medicare index price adjustments.

Hospital funding grants for palliative care services are available to States and Territories on a monthly basis under the Medicare Agreements.

Unlike the PCP, there is a continuing commitment to this funding as part of these Agreements at least until 1998, when current Agreements expire. Future Medicare Agreement renegotiations will determine whether this funding will continue past 1998.

Commonwealth Expenditure on Palliative Care 1993/94-1996/97


                 PCP State &   PCP National    Medicare        TOTAL
                 Territory     Projects        Schedule G                                 
                      $             $               $              $  

1993/94           4,369,964       92,183       11,376,000      15,838,147   

1994/95          11,775,263      822,523       11,758,195      24,355,981   

1995/96          13,553,930      995,537       12,250,149      26,799,616   

1996/97          12,769,090    2,090,000       12,795,151      27,654,241   

TOTAL            42,468,247    4,000,243       48,179,495      94,647,985   

(Department of Health and Family Services 3 February 1997)

Commonwealth-State Program

There is a small amount of funding for palliative care under the Commonwealth-State Home and Community Care Program (HACC), but in recent times palliative care has been treated as a 'no growth' component of HACC.

COAG discussions on devolution of aged and disabled care responsibilities to the States may provide opportunities to review this and associated issues.

Future Arrangements

Delivery of palliative care services, both in 1996-97 and beyond the term of the PCP, will be influenced by the findings of a current review of the program by the Commonwealth Department of Health and Family Services. The first stage of this review has been completed, but its findings are not yet available for public release. It is likely this initial report will be available in April 1997.

The first stage of the review was intended to evaluate the effectiveness of the PCP, comment on the appropriateness of existing palliative care services and identify service gaps. Preliminary findings by the Department in January 1997 indicate that Commonwealth funds have stimulated the development of new models of community palliative care services. With a shift in the funding and availability of services, people who have previously been able to receive only institutional care will often be able in future to choose to receive care at home.

The second stage of the review has commenced and is expected to be completed by June 1997. It will identify principles for the delivery of holistic and multi-disciplinary palliative care services and will provide advice on service delivery models, options for future palliative care funding and associated performance indicators.

As well as undertaking this program review, the Commonwealth has provided a grant of $165 986 to the Australian Association of Hospice and Palliative Care Inc. to develop standards for the provision of palliative care. It is expected that these will form the basis of a national service accreditation system for the provision of palliative care.

The Commonwealth Casemix Development Program includes a project on sub-acute and non-acute casemix classification (SNAP). This project is designed to measure the results of use of health system resources for patients such as those requiring palliative care. It is expected to be completed by 1 July 1997.

Discussions are taking place between the Commonwealth and the States and Territories on the broadbanding of Specific Purpose Payments (SPPs). Under this arrangement, federally funded programs will be pooled into a single grant to each State. Palliative care is one of the programs being considered in this process.

This year's federal Budget included a 3% efficiency dividend on all SPPs as part of the broadbanding process and a further 7% reduction in funds for administrative cost savings. These arrangements will apply to all broadbanded programs.

 

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