Moving to activity based funding – draft pricing framework

In January the Independent Hospital Pricing Authority (IHPA) released a draft pricing framework for comment. An MTAA working group has reviewed the draft framework and contributed comments. The draft framework remains a work in progress with comments to be evaluated and a final document to go to Ministers in late March. It sets out four principles for an activity based funding (ABF) system. MTAA has suggested that a fifth principle be included to ensure that the system is patient-focused and directed to driving improvements in patient outcomes.

The draft pricing framework includes in its definition of a hospital operating at the national efficient price, the characteristic that the hospital is able to respond to new technologies, which are cost effective from a societal point of view. While MTAA strongly supports this characteristic, we have also argued that there are structural issues in the current arrangements which may defer or limit the implementation of new technology. Product development can be rapid and so to ensure that beneficial new technologies are available to patients, funding mechanisms need to anticipate and provide for rapid technology upgrades. As a consequence MTAA has proposed that the current system for setting the Australian diagnosis related groups (DRGs) be reviewed in tandem with the implementation of national activity based funding. For example, alternative funding arrangements to support the introduction of new technologies could include interim funding while the technology is assessed or supplementary funding where the technology delivers additional benefits.

MTAA’s submission can be found here. MTAA is also hosting a MedTech Forum on the transition to activity based funding on 28 March.

Funding of remote monitoring of cardiac implantable electronic devices

In lieu of a broad-based pre-Budget submission for 2012-13, MTAA focused on one area to highlight the need for an expansion in funding for telehealth. In the past two Federal Budgets the government has made significant allowance for the establishment of early stage telehealth with an after hours GP call centre and remote videoconferencing between GPs and specialists, both of which are great developments in improving the support for patients in the community, and particularly for more remote patients.

There is good evidence to support the expansion of funding for telehealth. As a case study MTAA has developed the business case to argue for the cost neutral implementation of funding for remote monitoring of cardiac implantable electronic devices. At present a patient who has been implanted with a device such as a cardiac pacemaker is required to have a regular specialist consultation to ensure that both the heart and the device are working effectively. Evidence from large clinical trials has established that between 70% and 90% of follow-up checks require no further action by the doctor and could have been avoided. These checks carry with them wasted cost of healthcare infrastructure, doctor, nurse and patient time. At the same time, without remote monitoring there is no certainty that doctor intervention is able to occur when it is needed with the result that the patient may have a cardiac emergency that is not treated in time.

MTAA has proposed cost models with three objectives in mind, namely improving patient care and quality of life; providing a fair and adequate reimbursement to clinicians for the remote monitoring of the devices; and achieving a cost saving to the budget by introducing efficiency-enhancing technology and ensuring more timely intervention.

The business case can be found here.

Anne Trimmer
Chief Executive Officer
Medical Technology Association of Australia

MTAA’s Medtech Forum on Transition to Activity Based Funding to be held on Wednesday 28 March at Australian Technology Park, Sydney is a half day forum to discuss changes to public hospital funding arrangements under the National Health Reform Agreement.

The Forum will bring together three presenters who will explore how the new hospital funding arrangements will be implemented and what changes are needed to adapt the healthcare system to these arrangements. The presenters will contribute their insights from a federal, state and hospital perspective to help medtech companies understand how they will be affected by the changes.

Under the National Health Reform Agreement, signed by all states and territories and the Commonwealth in 2011, it was agreed that a national efficient price would be used to calculate the Commonwealth’s contribution to hospital funding. Activity based funding links funding to the numbers and kinds of services provided and the efficient cost of delivering those services.

The Independent Hospital Pricing Authority (IHPA) is responsible for setting the national efficient based on episodes of care in public hospitals, while at the same time ensuring reasonable access to services, safeguarding clinical safety and quality, and ensuring the efficiency, effectiveness and financial sustainability of the public hospital system.

As medical technology forms such a core component of each procedure, the medical technology industry has a growing interest in the new funding arrangements and what they will mean for both existing technology and new, innovative technology. This seminar will contribute to industry’s understanding. Register now and find out how an efficient price will be determined and how the new funding arrangement will affect hospital service delivery and procurement decisions.

Three plenaries led by expert leaders in the field will be presented on the topic Transition to Activity Based Funding. The day will conclude with a panel discussion involving each speaker and Anne Trimmer.

1. Plenary 1
   Speaker: Dr Tony Sherbon, Acting CEO, Independent Hospital Pricing Authority
2. Plenary 2
   Speaker: Julie Brophy, Principal Advisor, Costing Policy & Analysis Victorian Department of Health
3. Plenary 3
   Speaker: Dr Tracey Batten, Chief Executive Officer, St Vincent’s Health Australia
4. Panel Discussion
   Discussion of perspectives across the three spheres.
   Panelists: All three speakers with Anne Trimmer to facilitate.

Fee: Members - $275; Non-members - $550 (including 10% GST)
Registration: Please click here to register.

Please join MTAA for a networking function in Sydney. This function presents an opportunity for you to learn more about the latest trends for the medical technology industry in Australia. It provides time to network with the MTAA Board, CEO and industry colleagues.

Guest speaker Dr Fiona Blyth is head of the Intramural Research Division at the Sax Institute. She will present an overview of the 45 and Up Study that is managed by the institute.

The 45 and Up Study is the largest study of healthy ageing ever undertaken in the Southern Hemisphere. Over 265,000 men and women aged 45 and over across NSW have been recruited – about 10% of this age group – and will have their health followed over the coming decades.

Information collected through the 45 and Up Study will be used by policy agencies and by researchers to help gain a better understanding of how to prevent and provide the best possible healthcare for common health conditions such as cancer, cardiovascular disease, arthritis, depression, Alzheimer’s disease and diabetes.

Dr Blyth provides support on clinically focussed research within the 45 and Up Study as well as other research programs within the Sax Institute. She is a medically qualified epidemiologist and public health physician with expertise in population and clinical research, chronic disease epidemiology, and translation of research into health policy and practice. She is involved in national and international collaborations in the field of pain research.

MTAA Chief Executive Officer, Anne Trimmer will also give an overview of some of MTAA’s priorities for 2012.

Date:    Monday 16 April 2012
Time:   5.30 pm – 7.30 pm
Venue: NSW Trade & Investment Centre, Lvl 47, MLC Centre, 19 Martin Place (Corner of King and Castlereagh Streets) Sydney

There is no charge for the event, but please RSVP no later than Thursday 12 April to events@mtaa.org.au or call (02) 9900 0650. Light refreshments will be served.

Module 5.11 Planning Projects is now available.  It explores general project management principles and how to apply these skills to the project planning processes during the initiate and plan phases.

Upcoming Training

For a snapshot of upcoming training over the next three months, please click here.

March

• 3.5 Introduction to Operating Theatre Protocols (12 March, Brisbane)
• 4.2 Achieving a Successful Application for the Prostheses List (30 March, Sydney)

April

• 5.4 Implementing a Workplace Wellness Program (11 April, online)
• 1.2 Advanced Review of the Regulation of Medical Technology in Australia (20 April, Sydney)
• 3.5 Introduction to Operating Theatre Protocols (20 April, Sydney)

May

• 5.5 The Emotionally Intelligent Leader (9 May, online)

E-learning

If you are new to working directly with customers, you can register to complete module 5.16 Customer Focus. This self-paced online module has been developed to align with the unit of competency BSBCUS402A Address Customer Needs.

Contact Details

If you would like to know more about other training opportunities that are available through MTAA, please view the interactive training promotion. For all professional development enquiries, please contact Fiona Shipman, Professional Development Manager by E: pd@mtaa.org.au or P: (+612) 9900 0650.

NSW OTA Annual Conference 2012

The NSW Operating Theatre Association (OTA) is holding its annual conference Perioperative Nurses “Out in Front” from 8 - 10 March 2012 at Rosehill Racecourse, Sydney. MTAA Professional Development Manager, Fiona Shipman and nurse educator, Margaret Butler, will be presenting on Training medical  company representatives in the ACORN standards as visitors to the perioperative environment: A partnership approach to improving patient outcomes.

More information is available here.

German Trade and Investment

German MedTech will be promoted as part of two events on 13 March (in Sydney) and 15 March (in Melbourne). This German export initiative is funded by the German Government as part fo their Health Made in Germany initiative. MTAA CEO, Anne Trimmer will speak at both events. For more information about the initiative, please follow this link or register by emailing gccmel@germany.org.au (limited spaces).

Global GS1 Healthcare Conference

The 21st Global GS1 Healthcare Conference When Supply Chain meets eHealth - the importance of laying the foundations in Healthcare will be on 20 - 22 March 2012 in Sydney.

This conference will provide a unique platform for healthcare colleagues from around the world to meet, exchange experiences and advance the implementation of global standards – to inclrese supply chain efficiency and patient safety.

More information is available here.

SCM Innovation Forum

Drive new growth by strengthening the supply chain strategy and draw on the insights of SCM at the Master Your Supply Chain Innovation Forum organsied by Infor on 28 March 2012 in Parramatta.

For more information, please follow this link. In the comment section of the registration form please note if you are an MTAA member.

Hong Kong Medical Devices and Supplies Fair

The Hong Kong Medical Devices and Supplies Fair will be on 7 - 9  May 2012 at the Hong Kong Convention and Exhibition Centre. Asia's premier medical fair, organised by the Hong Kong Trade Development Council (HKTDC), offers medical devices and supplies, like medical & laboratory equipment, disposables, and brings together product developers and businesses looking to market these products.

HKTDC is offering new overseas buyers some accommodation sponsorship. For more information about the Fair, please follow this link.