For the first time, the Commonwealth will reward States and Territories with $108 million for exceeding targets to increase elective surgery operations.
The Prime Minister, Julia Gillard and Health Minister, Nicola Roxon announced the payments today, which demonstrate the success of the Federal Government's strategy to improve access to elective surgery.
Combined with the elective surgery blitz, which helped more than 70,000 Australians, the Gillard Government's reward payments are providing the states incentives to ensure they continue to deliver increased numbers of elective surgeries.
The reward payments are specified in the National Partnership Agreement on the Elective Surgery Waiting List Reduction Plan (the Plan), formally agreed to at the Council of Australian Government (COAG) in 2009.
The COAG Reform Council, which independently assesses the performance of the States and Territories, has advised the Government that the targets have been achieved.
This is the first time the Commonwealth has used these type of targets and rewards in the health system.
They results show the Gillard Government's health reform strategy is delivering benefits, helping Australians get the health services they need.
The reward payments are part of Labor's $600 million election commitment to improve access to elective surgery.
While the Government recognises there is still more work to do, this historic investment by the Commonwealth in elective surgery has been a critical first step.
Without the Commonwealth's investment, over 70,000 Australians could still be waiting for elective surgery.
The $600 million commitment to improve access to elective surgery included a $150 million elective surgery blitz, a $150 million investment in more than 120 infrastructure and medical equipment projects across the country and $300 million for the reward stages of the project. Today's announcement represents the first two stages of reward payments, with the final rewards to be determined in 2011.
The Gillard Government is committed to elective surgery beyond the conclusion of this funding, with $800 million to improve timely access to elective surgery across the country over the next four years as part of our health reform agreement.