Some Background On The 2016 Budget And The Australian Digital Health Authority. Some Useful Information.

This information appeared in the 2016 Budget Papers.

Here is the direct link:

http://www.health.gov.au/internet/budget/publishing.nsf/Content/2016-2017_Health_PBS_sup3/$File/2016-17_Health_PBS_4.03_Digital_Health.pdf

The parts I found interesting were as follows:

Australian Digital Health Agency

Health Portfolio Entity

Section 1: Entity Overview and Resources

1.1     Strategic Direction Statement

The Australian Government is committed to the delivery of a national shared digital health record system to deliver safer, more efficient and effective quality health care.

In the 2015-16 Budget, $485 million was announced for the redevelopment and operation of the national digital healthcare system in Australia and delivery of the My Health Record program. A significant part of the program is the establishment of the Australian Digital Health Agency (Digital Health Agency) for the ongoing development and operation of the national digital healthcare systems. The Digital Health Agency will become operational from 1 July 2016.

The Digital Health Agency is the national body which will have responsibility for the strategic management and governance responsibilities for the national digital health strategy and the design, delivery and operations of the national digital healthcare system. The Digital Health Agency will provide the leadership, coordination and delivery of a collaborative and innovative approach to utilising technology to support and enhance a clinically safe and connected national health system to improve health service delivery and health outcomes for the Australian community.

The Digital Health Agency will perform the following functions:

·         coordinate and provide input into the ongoing development of the National Digital Health Strategy;

·         implement those aspects of the National Digital Health Strategy that are agreed or directed by the Council of Australian Governments (COAG) Health Council;

·         develop, implement, manage, operate, continuously innovate and iteratively improve specifications, standards, systems and services in relation to digital health, consistent with the National Digital Health Work Program;

·         develop, implement and operate comprehensive and effective clinical governance, using a whole of system approach, to ensure clinical safety in the delivery of the National Digital Health Work Program;

·         develop, monitor and manage specifications and standards to maximise effective operation between public and private sector digital healthcare systems;

·         develop and implement compliance approaches in relation to the adoption of agreed specifications and standards relating to digital health; and

·         liaise and cooperate with overseas and international bodies on matters relating to digital health.

The Digital Health Agency is a Corporate Commonwealth Entity under the Public Governance, Performance and Accountability Act 2013. The functions of the Digital Health Agency are set out in the Public Governance, Performance and Accountability (Establishing the Australian Digital Health Agency) Rule 2016.

1.2     Entity Resource Statement

Table 1.1 shows the total funding from all sources available to the entity for its operations and to deliver programs and services on behalf of the Government.

The table summarises how resources will be applied by Outcome (Government strategic policy objectives) and by Administered (on behalf of the Government or the public) and Departmental (for the entity’s operations) classification.

For more detailed information on special accounts and special appropriations, please refer to Budget Paper No. 4 – Agency Resourcing.

Information in this table is presented on a resourcing (i.e. appropriations/cash available) basis, whilst the ‘Budgeted expenses by Outcome’ tables in Section 2 and the financial statements in Section 3 are presented on an accrual basis.

Funds Available for 2016/17

Table 1.1: Digital Health Agency Resource Statement – Budget Estimates
for 2016-17 as at Budget May 2016

	2015-16 Estimated actual $'000	2016-17 Estimate $'000
Opening balance/cash reserves at 1 July	-	-
Funds from Government
Annual appropriations
Ordinary annual services1
Outcome 1	-	110,303
Other services2
Equity injection	-	10,589
Total annual appropriations	-	120,892
Amounts received from related entities3
Amounts from the Portfolio Department	-	-
Amounts from other entities	-	-
Total amounts received from related entities	-	-
Total funds from Government	-	120,892
Funds from other sources
Interest	-	1,200
Sale of goods and services	-	-
Other	-	34,400
Total funds from other sources	-	35,600
Total net resourcing for Digital Health Agency	-	156,492
	2015-16	2016-17
Average staffing level (number)	-	51

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Budgeted Expenses for the Digital Health Agency

This table shows how much the entity intends to spend (on an accrual basis) on achieving the Outcome, broken down by program, as well as by Administered and Departmental funding sources.

Table 2.1.1: Budgeted Expenses for the Digital Health Agency

	2015-16 Estimated actual $'000	2016-17 Budget $'000	2017-18 Forward Year 1 $'000	2018-19 Forward Year 2 $'000	2019-20 Forward Year 3 $'000
Program 1.1: Digital Health
Revenue from Government
Ordinary annual services	-	110,303	114,124	4,159	-
Amounts from related entities	-	-	-	-	-
Revenues from independent
sources	-	35,600	35,600	-	-
Expenses not requiring appropriation
in the Budget year1	-	41,183	-	-	-
Operating deficit (surplus)	-	(18,730)	-	-	-
Total for Program 1.1	-	168,356	149,724	4,159	-
Total expenses for Outcome 1	-	168,356	149,724	4,159	-
	2015-16	2016-17
Average staffing level (number)	-	51

3.2     Budgeted Financial Statements Tables

Table 3.1: Comprehensive Income Statement (showing net cost of services for the period ended 30 June)

	2015-16 Estimated actual $'000	2016-17 Budget $'000	2017-18 Forward estimate $'000	2018-19 Forward estimate $'000	2019-20 Forward estimate $'000
EXPENSES
Employee benefits	-	39,082	40,414	-	-
Supplier expenses	-	119,142	98,945	4,159	-
Depreciation and amortisation	-	10,132	10,365	-	-
Total expenses	-	168,356	149,724	4,159	-
LESS:
OWN-SOURCE INCOME
Own-source revenue
Sale of goods and rendering of
services	-	-	-	-	-
Interest	-	1,200	1,200	-	-
Other revenue	-	34,400	34,400	-	-
Total own-source revenue	-	35,600	35,600	-	-
Gains
Other	-	41,183	-	-	-
Total gains	-	41,183	-	-	-
Total own-source income	-	76,783	35,600	-	-
Net cost of (contribution by)
services	-	91,573	114,124	4,159	-
Revenue from Government	-	110,303	114,124	4,159	-
Surplus (deficit)	-	18,730	-	-	-
Surplus (deficit) attributable to
the Australian Government	-	18,730	-	-	-
OTHER COMPREHENSIVE INCOME
Changes in asset revaluation
reserves	-	-	-	-	-
Total other comprehensive
income (loss)	-	-	-	-	-
Total comprehensive income (loss)
attributable to the
Australian Government	-	18,730	-	-	-

Interesting points:

1. Outline of just what the ADHA is expected to do.

2. The staffing is planned to be 51 people - which is a lot less than NEHTA.

3. An majority of the outgoings are to suppliers (($100M p.a.)

4. It is not clear what has happened to the old NEHTA reserves and who is paying for all this - States / Commonwealth etc.

Other ideas on what is seen here are welcome.

David.