Explanatory Statement
Issued by Authority of the Minister for Health and Aged Care
National Health Act 1953
Subsection 5B(5)
(IHS13/1999)
GUIDELINES RELATING TO THE DECLARATION OF DAY HOSPITAL FACILITIES
Subsection 5B(1) of the National Health Act 1953 (the Act) enables the Minister for Health and Aged Care to declare premises to be day hospital facilities for health insurance purposes.
Subsection 5B(5) enables the Minister to make guidelines detailing specific issues that will be taken into consideration when making a declaration under subsection 5B(1).
State health authorities are increasingly turning to the private sector to achieve efficiencies in the area of health care. Section 5B allows the Minister to obtain assurances, where necessary, from the State/Territory and/or provider concerning access, service provision and potential cost shifting.
The guidelines aim to ensure that the interests of public (Medicare) patients are protected under all privatisation arrangements and that there is no unreasonable shift in the cost of day hospital facility treatment from the State/Territory to the Commonwealth and/or health insurance funds and/or patients. They include provision for the following issues to be taken into account:
- will the proposal affect public patient access to a reasonable range of services?
- will it affect the right of all patients to elect to be treated as a public patient?
- will it result in a transfer of costs from the State Government to any other party?
- will data be made available to the Commonwealth to enable the issues raised in the guidelines to be monitored?
Subsection 5B(6) of the Act states that the guidelines are disallowable instruments for the purposes of section 46A of the Acts Interpretation Act 1901. Therefore, the guidelines are required to be tabled in both Houses of Parliament and are subject to disallowance by either House.
Notification of the guidelines appeared in the Commonwealth of Australia Government Notices Gazette No. 37 of 15 September 1999. The guidelines came into effect on gazettal.
Overview
The National Health Act 1953, enacted by the Parliament of Australia, was introduced to provide a legislative framework for health services in the country. One of its provisions allows the Minister for Health and Aged Care to declare premises as day hospital facilities for health insurance purposes, aiming to ensure that the interests of public patients are protected in privatisation arrangements. To guide the Minister in making these declarations, the Act includes the ability to establish guidelines concerning specific issues that need to be considered, such as the impact on public patient access, the potential for cost shifting, and the availability of data for monitoring. These guidelines, which came into effect on their gazettal on 15 September 1999, are designed to protect the interests of public patients and ensure there is no unreasonable financial burden on the State, the Commonwealth, health insurance funds, or patients due to the privatisation of day hospital facilities. They are considered disallowable instruments, meaning they must be tabled in both Houses of Parliament and can be subject to disallowance by either House.
Scope and Application
The National Health Act 1953, specifically under subsection 5B(5), grants the Minister for Health and Aged Care the authority to issue guidelines concerning the declaration of premises as day hospital facilities for health insurance purposes. These guidelines are designed to ensure that the interests of public (Medicare) patients are safeguarded in the context of privatisation arrangements within the health sector. The guidelines apply to any entities or premises seeking to be recognised as day hospital facilities and require consideration of factors such as potential impacts on public patient access, the right of patients to elect public patient status, cost transfers between the State/Territory government and other parties, and the availability of data for monitoring purposes. The geographic reach of these guidelines is national, applying across all states and territories within Australia. The guidelines are subject to disallowance by either House of Parliament, as they are considered disallowable instruments under section 46A of the Acts Interpretation Act 1901. The guidelines were gazetted and came into effect on the date of their publication in the Commonwealth of Australia Government Notices Gazette.
Key Provisions
The main operative sections of this piece of legislation are subsection 5B(1) and subsection 5B(5) of the National Health Act 1953. Subsection 5B(1) empowers the Minister for Health and Aged Care to declare premises as day hospital facilities for health insurance purposes. This is a key provision that allows the Minister to determine which facilities can be recognised for the purposes of providing health insurance benefits. Subsection 5B(5) allows the Minister to create guidelines that detail specific issues to be considered when making such declarations. These guidelines ensure that various factors, particularly those concerning public patient access and cost shifting, are taken into account.
The Act imposes several obligations and requirements on the parties and entities it governs. Firstly, it mandates that state health authorities must adhere to the guidelines when considering the privatisation of health services. This includes ensuring that public patient access to services is not adversely affected and that there is no unreasonable shift in the cost of day hospital facility treatment. The guidelines also require state health authorities to provide assurances concerning access, service provision, and potential cost shifting. Furthermore, the Act requires that data be made available to the Commonwealth to enable monitoring of these issues. This ensures transparency and accountability in the privatisation process.
Failure to comply with the provisions and guidelines set out in the Act can result in various consequences. While the Act itself does not explicitly outline offences or penalties, breaches of the guidelines can lead to civil or criminal consequences. The Minister for Health and Aged Care has the authority to take action against entities that do not adhere to the guidelines, which could potentially result in legal proceedings. Additionally, the guidelines are disallowable instruments, meaning they can be subject to disallowance by either House of Parliament, as stated in subsection 5B(6) of the Act. This provides a mechanism for parliamentary oversight and ensures that the guidelines align with broader legislative intent.
The guidelines, once tabled in both Houses of Parliament, are subject to disallowance under section 46A of the Acts Interpretation Act 1901. This means that either House can vote to disallow the guidelines, rendering them ineffective. Notification of the guidelines appeared in the Commonwealth of Australia Government Notices Gazette No. 37 of 15 September 1999, and they came into effect on gazettal. This process ensures that the guidelines are subject to parliamentary scrutiny and that any potential issues can be addressed before they are implemented.