Commonwealth to cut funding for botched operations

The Australian

28 November 2017 - Public hospitals will no longer ­receive commonwealth funding for avoidable complications such as pressure injuries, infections and falls under a landmark bid to ­improve the standard and cost of acute care in Australia.

Under activity-based funding, public hospitals, and through them clinicians, receive money for services delivered, including those that have been botched or could have been avoided. Only since July have hospitals not been funded for the most serious mistakes.

From July 1 next year, under a decision announced by the Independent Hospital Pricing Auth­ority yesterday, public hospitals will have to absorb the cost of treating patients with certain “hospital acquired complications”. Without that funding, managers and clinicians will have another reason to improve their performance.

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Michael Wonder

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Michael Wonder