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Timeless Quotes - Sadly The Late Paul Shetler - "Its not Your Health Record it's a Government Record Of Your Health Information"

or

H. L. Mencken - "For every complex problem there is an answer that is clear, simple, and wrong."

Tuesday, May 01, 2012

NEHTA Looks To Be Suffering A Major Funding Cut From June 30, 2012. Duck and Cover!

We had the 2012/13 Victorian Budget announced today.
NEHTA got a mention I am told.
On the latest figures Victoria has the following proportion of the Australian Population.
Population breakdown of Australia is 5 640.9 (Victoria) of 22960.0 (Total OZ) Individuals X 1000 - This means the ratio .245 of the national population (Source ABS 29/03/2012).
See here:
Here is the mention and quote.
The Victorian Government plans to spend $16.6M over 2 years on NEHTA.
“$16.6 million over 2 years to enable the National E-Health Transition Authority (NEHTA) to the development and maintenance of national e-health foundations” - From Victorian Budget Papers today. (Source VHA Members Bulletin)
This implies an annual contribution of $8.8M.
This means a proportional total Jurisdictional Contribution of $35.918M
Add the Commonwealth 50% and we arrive at say $72M per annum.
Here are the totals for the last 2 years - Source Annual Reports:
Member provided revenue (which I believe is separate from the special funding for PCEHR delivery etc. - but how can you be sure?):
 2011 $122,392,640 (- $50M from this level.)
 2010 $95,635,311 (- $23M from this level.)
Looks like the contractors and temporary staff will be out on the streets with this level of cut.
Seems like (at say even $200,000 per head)  between 100 and 200 staff out the door.
Maybe the PR Department could become a single secretary, we could do without paid spruikers and the CEO could look at a pay cut since there will be a smaller organisation to run?
The implications for the Federal Budget and the NEHRS (PCEHR) are obvious. Slow down to stop mode will most likely be in place.
Please note: I am really sorry for the high quality and dedicated people who may be affected by the rather nasty cut if I am right. They deserved much better management to deliver much more skilfully so their future was much more secure.
David.

9 comments:

Anonymous said...

The rumours have been circulating a while, but the staff are not told a single thing. Looks like internet job website usage will be going up....

Anonymous said...

If the cuts are true they are well nigh due. For starters I would:
(a) get rid of the entire Clinical Lead Team. They are premature in the extreme and not of any value when there is nothing to deliver except a lot of hot air.

(b) take that humongous Holiday Camper Van off the road and send it to the wreckers. It is falsely promoting a blatant lie and destroying any ehealth credibility that might still be remaining to the detriment of the ehealth vendor community.

(c) take a first in first out hard line approach and after a very careful perceptive review despatch the first 10 to 20 individuals.

(d) put the organisation in maintenance mode for 6 months

(e) call in 3 highly credible individuals experienced in ehealth and untainted by exposure to NEHTA to undertake a wide ranging, unconstrained, apolitical review of the entire extravaganza.

(f) take a deep breath and hope like hell that the damage done to date is not irreversible.

Anonymous said...

This funding is likely to be for 'NEHTA classic' - the work program that existed before PCEHR/NEHRS came along. PCEHR is solely funded by DoHA, and as you say is effectively a separate funding stream.

It would be more relevant to look back at the last budget allocation for NEHTA from Vic to see if there has been a big net change year on year.

Dr David G More MB PhD said...

The PCEHR Program is June 2010 to June 2012. So the FY to June 2010 was before that and the total was the $96M from members.

The estimated for 2013 is $72M so it looks like a classic NEHTA cut but with government figures it is impossible to know!

David.

Anonymous said...

There are so many ways NEHTA could contain the costs and stop wasting taxpayer funds. One clinical lead is paid $400K per annum and that's only on a 4 day per week basis.

Paul Karen said...

And the Newcastle Wave 1 site has apparently been paid $5 mil - and for what?

Anonymous said...

If 5/02/2012 09:05:00 AM's claim that one clinical lead is being paid $400K per annum is true then it needs to be fully exposed and the payment rates and periods covered for every member of the clinical lead teams should be subject to full public scrutiny.

Anonymous said...

No news here it seems, please move along as there's nothing of any interest to look at here.

NEHTA looks to get Business As Usual COAG Funding as they were last given $218M from 2009-12 (not including any PCEHR Funding from the $467M) which equates to $72.6/yr.

So unless you want to factor CPI effects, does not look like NEHTA has suffered any cuts whatsoever!

Not Exactly Helping Things Along looks to keep "trucking" along.

Or the May 8 budget could produce a surprising other story, maybe.

Dr David G More MB PhD said...

What a perfect example of a lack of transparency about what is happening with $70Million of public money.

I still suspect there are some gaps, but as I said in the blog, how can you know.

Of course if real progress was to be made I suspect this funding is hardly enough. The Budget will tell!

David.