The Auditor-General has completed an independent performance audit of the Department of Health and Aged Care (DHAC)’s management of Primary Health Networks (PHNs). The department established PHNs on 1 July 2015, replacing Medicare Locals. There are 29 PHN providers, which are responsible for 31 PHN regions across Australia.
This is a report on the PHN model and does not reflect on individual PHNs. HCCA works closely with the Capital Health Network and Coordinaire. These two organisations are PHNs for ACT and South-Eastern NSW, respectively.
The audit has found that DHAC has been partly effective in its performance management of Primary Health Networks. There is some work to do to improve DHAC performance measurement and reporting arrangements for PHNs as these are not clear and need refining.
The most significant finding is that DHAC has not comprehensively evaluated the PHN delivery model to determine whether it is meeting its objectives. The Audit has made eight recommendations. Recommendation 8 is that the Department:
- develop an evaluation plan for the Primary Health Network delivery model; and
- evaluate the Primary Health Network delivery model to determine whether it is achieving its objectives.
DHAC has agreed to seven of the recommendations, including this one, and agreed in principle to the eighth (implementing a fit-for-purpose IT system).
You can see the funding that DHAC has committed to Primary Health Networks in a table in Appendix 3 (pages 69-71). This table shows the grants according to location (which PHN) and target area (such as mental health, aged care, and others). Since the establishment of the PHNs in 2015, DHAC has committed $11.6 billion to PHNs in grants funding. The Capital Health Network has received $178,101,181. This is the smallest allocation of any of the PHNs.
The full report is available online here: Effectiveness of the Department of Health and Aged Care’s Performance Management of Primary Health Networks | Australian National Audit Office (PDF). |