EXPLANATORY STATEMENT
Issued by Authority of the Minister for Health and Ageing
National Health Act 1953
Determination pursuant to Subsection 5D(1)
(PSO 5 / 2005)
Subsection 5D(1) of the National Health Act 1953 (the Act) provides that the Minister may, by written determination, specify services provided by, or on behalf of, a specified hospital or day hospital facility for the purposes of the definition of outreach service in subsection 4(1) of the Act. Once a service is determined to be an outreach service then it is deemed to be hospital treatment (section 5C of the Act). Health funds can then pay benefits for those services (and associated professional services) under applicable benefits arrangements (hospital cover policies), provided that the services are provided as a direct substitute for hospital treatment that would otherwise be provided in a hospital or day hospital facility.
The provisions relating to outreach services were inserted into the Act by the Health Legislation Amendment Act (No. 1) 2001. These provisions were enacted to allow health funds to pay benefits for services that are provided to a patient as a direct substitute for hospital treatment, such as hospital in the home, under applicable benefits arrangements. Prior to these provisions being inserted, health funds could only pay benefits for such services if regulations modifying the Act were made under subsection 140(2) of the Act.
Consultation
A facility that wishes a determination to be made in relation to an outreach service it provides makes an application to the Department of Health and Ageing. Each application is initially assessed by the Private Sector Outreach Services Working Party (the ‘Working Party’). The Working Party members are drawn from: the Australian Health Insurance Association, the Australian Private Hospitals Association, the Committee of Presidents of Medical Colleges, the Royal College of Nursing Australia, Catholic Health Australia, Ambulatory Care Australia and the Consumers’ Health Forum. The Working Party considers each application against guidelines that contain criteria about clinical standards and patient outcomes. The guidelines have been designed to assist the Working Party to assess whether the services to be provided are of a suitable quality. The Working Party makes a recommendation to the Minister as to whether the services meet the guidelines, and the Minister (or delegate) decides whether to make a determination under subsection 5D(1) of the Act, taking into account the recommendation of the Working Party.
This Determination specifies outreach services to be provided by, or on behalf of Frances Perry House.
Item-by-item details of the Schedule
Specified services provided by, or on behalf of, specified hospitals or day hospital facilities.
Item 1 – Definitions
This item defines terms used in the Schedule.
Item 2 - Specified services and hospitals
Item 2 - Frances Perry House
This item specifies that relevant health services provided to patients by, or on behalf of,
Frances Perry House in Victoria as part of Frances Perry House Outreach Service are outreach services for the purposes of subsection 4(1) of the Act. This outreach service involves the provision of treatment (which may include nursing care, treatment by a medical practitioner or the provision of allied health services) to patients in their own homes.
This determination commences on 1 July 2005 and remains in force until and including 30 June 2008. The determination and this explanatory statement have been lodged for registration on the Federal Register of Legislative Instruments
ACUTE CARE DIVISION
DEPARTMENT OF HEALTH AND AGEING
June 2005
Overview
The National Health Act 1953, as amended by the Health Legislation Amendment Act (No. 1) 2001, was enacted to address the need for health funds to be able to pay benefits for services provided to patients as a direct substitute for hospital treatment, such as hospital in the home. This was previously restricted unless specific regulations were made under the Act. The 2001 amendment introduced provisions to allow for the specification of outreach services, which are deemed to be hospital treatment, thereby enabling health funds to cover these services under applicable benefits arrangements. Pursuant to subsection 5D(1) of the National Health Act, the Minister for Health and Ageing can specify these services by written determination, following an application and recommendation from the Private Sector Outreach Services Working Party. This Determination, issued in 2005, specifies outreach services provided by Frances Perry House in Victoria, including nursing care, medical treatment, and allied health services provided in patients' homes, and it was made to ensure these services met the required clinical standards and patient outcomes as per the Act’s guidelines.
Scope and Application
The National Health Act 1953, through its Subsection 5D(1), empowers the Minister to specify services provided by or on behalf of a specified hospital or day hospital facility as outreach services, thereby deeming them hospital treatment. This legislative framework was established to facilitate health funds in paying benefits for services that act as direct substitutes for hospital treatment, such as hospital in the home, under the applicable benefits arrangements. Specifically, the Health Legislation Amendment Act (No. 1) 2001 introduced these provisions to allow health funds to cover such services without the need for modifying regulations under the Act. The application process for such services involves a facility applying to the Department of Health and Ageing, which is then assessed by the Private Sector Outreach Services Working Party. This Working Party, comprising representatives from various health associations and consumer forums, evaluates each application against guidelines that assess clinical standards and patient outcomes, ultimately recommending to the Minister whether to approve the outreach service. The Minister, or a delegate, then decides on the determination, taking into account the Working Party's recommendation. This determination applies to services provided by Frances Perry House in Victoria as part of its Outreach Service, which includes nursing care, medical treatment, and allied health services delivered to patients in their homes. This determination is effective from 1 July 2005 until 30 June 2008.
Key Provisions
The determination under subsection 5D(1) of the National Health Act 1953 (the Act) specifies that certain health services provided by, or on behalf of, Frances Perry House in Victoria are considered outreach services (section 5D(1)). This determination includes the provision of treatment, which may involve nursing care, treatment by a medical practitioner, or allied health services, to patients in their own homes as part of Frances Perry House Outreach Service. This outreach service is deemed to be hospital treatment under section 5C of the Act, meaning health funds can pay benefits for these services, provided they are a direct substitute for hospital treatment (section 4(1)). The determination is effective from 1 July 2005 until 30 June 2008.
The Act imposes certain obligations on the parties involved. The facility, in this case, Frances Perry House, must apply to the Department of Health and Ageing if it wishes for a determination to be made regarding an outreach service it provides. This application is assessed by the Private Sector Outreach Services Working Party, which reviews the application against guidelines that ensure the services meet specified clinical standards and patient outcomes. The Working Party makes a recommendation to the Minister, who then decides whether to make a determination. The facility must ensure that the services provided meet the criteria outlined in the guidelines to secure the determination.
Failure to meet the criteria set out in the guidelines can result in the Working Party recommending against the application, which may lead to the Minister declining to make a determination. While the Act does not explicitly state penalties for non-compliance, it does outline the process for determining whether services qualify as outreach services. If a facility fails to meet the clinical standards and patient outcomes criteria, it may not receive the benefits under the Act for the services it provides. This could potentially impact the facility’s ability to claim certain benefits from health funds for the services rendered.
The Act also stipulates that each application must be lodged for registration on the Federal Register of Legislative Instruments. This ensures transparency and legal accountability of the determination process. The Working Party’s recommendations and the Minister’s decisions are part of a formal process, which underscores the importance of adherence to the guidelines and the criteria established for outreach services. The legal framework ensures that only services meeting the specified standards are recognised as outreach services, thereby protecting patient care quality and ensuring appropriate benefits are paid by health funds.