Ground Hog DayHealth Headlines - September 2009 |
Report of the Ministerial Review Group
The 16th of August could have bought forward a raft of different ideas and options for the health sector. However the release of the Ministerial Review Group (MRG) report signals further significant health reforms - reforms that would likely revisit health funding models comparable with those of the mid 1990s.
We know the past informs the future, so what could the impacts of the reforms be on these key areas:
Technology
- Fragmented back office processes can now be consolidated, standardised and supported. There have been significant technological advancements since the last attempt so using a single powerful technology platform is a viable option.
- Further alignment of Ministry of Health (MoH) information systems with others such as Accident Compensation Corporation (ACC), creating economies of scale within the sector.
People
- It will be important to align HR strategy with business strategy. Attention will need to be on key issues such as, but certainly not limited to, communication, organisational structure, leadership, training, retention, retrenchment and remuneration.
- The creation of the National Health Board will see the transfer or outplacement of people from the MoH. This needs to be managed appropriately to ensure key skills and institutional knowledge is retained.
- A change in culture is certain. Time and effort needs to be invested into ensuring the transition runs smoothly and that the risk of disruption to the front line services are mitigated.
Governance
- Although the MoH will still hold ultimate responsibility, there will be a large impact on governance, especially with the transfer of functions from the MoH to the NHB and the introduction of the an independent national quality agency.
- Centralisation will reduce autonomy within District Health Board’s (DHBs)as there will be more input into how they must carry out their activities.
Event with this level of reform there are visible benefits:
- A reduction in total management and administration FTE’s at both the MoH and DHBs
- Reduced growth seen in Multiple Employer Collective Agreement’s (MECA’S) and the future funding track
- An increase in spending on frontline resources
- Reduced waiting times for elective surgery as increased collaboration between the public and private sectors improves access
- The development and opening of family health centres
The MRG recommendations have shown that this is a 21st century reincarnation of an earlier centralised structure, however now the health sector has the technological ability to execute strategies in a more efficient way.
We expect to see some of the MRG’s recommendations make it through cabinet in the next few weeks. After that? A multi-year programme to follow for full implementation.
Watch this space...