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Hospital funding cuts target elderly

4th February, 2007

State Government public hospital funding cuts are targeting the elderly, AMA Victoria President Dr Mark Yates said today.

Dr Yates said the huge funding cuts, up to 39 per cent, appeared to target the most frail in our community, the elderly, and may force hospital budget blow-outs.

“The government is saying to hospitals cut the stays for dementia and stroke patients by 8 days compared to 2005/06. In addition, hospitals will have funding for patients with these conditions cut by between $924 and $2499 per patient.

“The government funding formula has also severely cut funding and the funded bed days for patients with delirium, heart failure, collapse and skin ulcers, all conditions suffered largely by elderly patients.”

An AMA Victoria investigation revealed the extent of the changes after doctors raised concerns about the impact the changed funding formula was starting to have on hospital budgets and the consequences for their patients.

Dr Yates called on the government to guarantee funding is restored to at least 2005/06 levels for these patients.

This call is supported by the National Stroke Foundation.

Currently Victorian public hospitals receive funding for Diagnosis Related Groups (DRGs), based on a target length of stay for patients based on their condition. So for example the hospital would receive a set dollar amount for treating a patient with stroke.

“From year to year there is usually some variance in costs as treatments improve for certain conditions, but big variances should only occur in exceptional circumstances,” Dr Yates said.

“You cannot justify a funding formula which discriminates against elderly patients and hospitals which treat them.

“The repercussions of such an approach on the patient, their carers and GPs are enormous.

“Early discharge is known to have a major impact on elderly people trying to live independently.

“Elderly patients deserve to be given the highest quality care and hospitals should not be penalised for providing that level of care,” Dr Yates said.

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