Department of Health & Human Services

Policy and funding guidelines 2015

Volume 1: Departmental overview

Department of Health & Human Services

Policy and funding guidelines 2015 Volume 1: Departmental overview

To receive this publication in an accessible format, please phone 9096 8422 using the

National Relay Service 13 36 77 if required, or email <pfg@health.vic.gov.au>.

Authorised and published by the Victorian Government, 1 Treasury Place, Melbourne.

© State of Victoria, Department of Health & Human Services July 2015.

Where the term ‘Aboriginal’ is used it refers to both Aboriginal and Torres Strait Islander people.

Indigenous is retained when it is part of the title of a report, program or quotation.

Available at <www.health.vic.gov.au/pfg>.

(1507032)

Department of Health & Human Services policy and funding guidelines 2015

Volume 1: Departmental overview Page 1

1 The Department of Health & Human Services

About the department

The Department of Health & Human Services was established on 1 January 2015, bringing together the

functions of health, human services and sport and recreation.

Our vision is to improve social and economic outcomes through programs designed to enhance the

wellbeing of Victorians.

We know that all Victorians will come into contact with health and social services at some point in their

lives and that there are critical links between wellbeing, vulnerability and social inclusion.

The health system provides universal healthcare for all, while community services provide targeted

assistance to disadvantaged and vulnerable Victorians. Community services also play an important role

in building cohesive and supportive communities that offer opportunities for participation.

The combined effort of these service systems working together can drive positive long-term change for

individuals and families, particularly those with multiple and complex needs that span issues such as

mental health, housing, drugs and alcohol, chronic health conditions and disability.

By working together, we will strive to build stronger functional, policy and service delivery connections to

support the health and wellbeing of all Victorians, no matter what their personal circumstances or stage

of life.

Department of Health & Human Services policy and funding guidelines 2015

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2 Our ministers

The Hon. Jill Hennessy MP Minister for Health; Minister for Ambulance Services

The Hon. Jenny Mikakos MLC Minister for Families & Children; Minister for Youth Affairs

The Hon. Martin Foley MP Minister for Housing, Disability & Ageing; Minister for Mental Health

The Hon. John Eren MP Minister for Sport

The Department of Health & Human Services supports the portfolios of:

the Hon. Jill Hennessy, Minister for Health, and Minister for Ambulance Services

the Hon. Jenny Mikakos, Minister for Families and Children, and Minister for Youth Affairs

the Hon. Martin Foley, Minister for Housing, Disability and Ageing, and Minister for Mental Health

the Hon. John Eren, Minister for Sport.

The department develops and delivers policies, programs and services that support and enhance the

wellbeing of all Victorians.

With its service partners and the community, the department provides services and support to:

help Victorians to be as healthy as they can be

assist people to access opportunities that lead to positive, fulfilling lives

build people’s capacity to participate in social, economic and community life

contribute to a society that is inclusive, provides fair access to opportunity for all, and in which health

and social inequality is minimised

provide services and protection for the most vulnerable members of society, and build resilience to

overcome the challenges that communities and individuals face.

Department of Health & Human Services policy and funding guidelines 2015

Volume 1: Departmental overview Page 3

3 Budget overview

The Department of Health & Human Services 2015–16 budget totals $20.0489 billion, representing a 6.2

per cent increase in overall funding from 2014–15. This is a very strong outcome in a tight fiscal and

economic environment in which overall government expenditure will grow at 3.0 per cent and revenue at

3.4 per cent per annum over the forward estimates.

This strong result will ensure the department continues to put clients at the centre of our work and to

improve services for the people we support through investments in a range of new and recurring

programs and infrastructure.

Some highlights from the 2015–16 State Budget for the department include:

$1.38 billion in additional funding for health, mental health and aged care sectors, with $561.3 million

for new investment in hospital infrastructure

$717 million in funding over five years for programs and services targeting Victorian communities,

families, children and young people.

Specific initiatives include:

an additional $327.7 million for acute health and ambulance services output initiatives

$29.1 million for mental health output initiatives

$6.8 million in additional funding to the Home and Community Care (HACC) program, providing

indexation of funding

an additional $17.6 million for public health

$28.7 million for the primary, community and dental health output to deliver the government’s election

commitment to establish 20 super pharmacies across metropolitan and rural Victoria

a $206 million budget boost for people with a disability, their families and carers, as well as people

who are either homeless or facing homelessness, including $7.5 million for housing assistance

support services for people who are experiencing, or at risk of experiencing family violence

an extra $117.8 million for mental health, including $88.2 million to provide 80 adults and up to 500

older people with the intensive, specialist support they need and funding to help manage critical

demand pressures in the mental health system

$70 million to replace clinical services hardware, engineering infrastructure and medical equipment

$99 million for ambulance services, including $20 million for capital upgrades and $20 million for

equipment

initial funding of $15 million to progress planning to build Australia’s first specialist heart hospital

$226 million to support community sports clubs and upgrade stadiums and venues across the state

so they can host more events and hold more spectators.

Department of Health & Human Services policy and funding guidelines 2015

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4 How to use this document

Volume 1: Departmental overview

This volume details the establishment, vision and a budget overview of the Department of Health &

Human Services.

Volume 2: Health operations 2015–16

Volume 2, coloured red for sector ease, applies to all organisations funded by the former Department of

Health.

The Department of Health and Human Services policy and funding guidelines 2015, Volume 2: Health

operations 2015–16 (‘the guidelines’) present the system-wide terms and conditions (for funding,

administrative and clinical policy) of funding for government-funded healthcare organisations.

The guidelines reflect the government and department’s role as a system manager and underpin the

agreements at an organisational level (Statements of Priorities (SoPs) and Service Agreements). They

set out the requirements that funded organisations must comply with in addition to their contractual and

statutory obligations, outline activity that is required in order to receive funding, and detail expectations of

administrative and clinical conduct.

The guidelines are relevant for all funded organisations including health services, community service

organisations (CSOs) and other funded organisations such as Ambulance Victoria.

‘Volume 2: Health operations’ is presented across four chapters. The chapters separate the pricing and

funding models from the administrative and clinical conditions of funding. The aim is to improve the

clarity and accessibility of the guidelines.

Chapter 1: Overview, key changes and new initiatives provides an overview of the accountability

framework for funded organisations and introduces the most significant developments in funding, policy,

government priorities and service delivery for the coming year.

Chapter 2: Pricing and funding arrangements for Victoria’s health system details the pricing and

funding arrangements for public hospital services and for all other outputs provided by the department.

Chapter 3: Conditions of funding. In order to receive funding from the Victorian Government, all

funded organisations must comply with standards and policies that ensure the delivery of safe, high-

quality services and responsible financial management. This chapter details the relevant standards and

policies that may apply.

Chapter 4: Funding and activity levels provides the tables detailing the modelled budgets for 2015–16

as well as the activity tables that detail the 2015–16 targets for a range of programs across the health

system.

In addition to these guidelines, funded organisations are expected to comply with all relevant policy

documents and guidelines. A list of key policies and guidelines can be found at

<www.health.vic.gov.au/pfg>.

Hospital circulars provide updates on changes that affect health services during the year. These are

available at <www.health.vic.gov.au/hospitalcirculars>.

Funded organisations should always refer to the Policy and funding guidelines website for the most

recent version of the guidelines, as items may be updated throughout the year.

Department of Health & Human Services policy and funding guidelines 2015

Volume 1: Departmental overview Page 5

Where these guidelines refer to a statute, regulation or contract, the reference and information provided

is descriptive only. In the case of any inconsistencies or ambiguities between these guidelines and any

legislation, regulations and contractual obligations with the State of Victoria acting through the

department or the Secretary to the department, the legislative, regulatory and contractual obligations will

take precedence. Each funded organisation should refer to the relevant statute, regulation or contract in

order to ascertain all the details of its legal obligations. If any funded organisation has questions in

relation to its legal obligations it should seek independent legal advice.

A note on terminology

The term ‘funded organisations’ relates to all entities that receive departmental funding to deliver

services. Aspects of these guidelines referring to funded organisations are applicable to all department-

funded entities.

For the purposes of these guidelines, the term ‘health services’ relates to public health services,

denominational hospitals, public hospitals and multipurpose services, as defined by the Health Services

Act 1988, in regard to services provided within a hospital or a hospital-equivalent setting. Aspects of

these guidelines that refer specifically to ‘health services’ are only applicable to these entities.

The term ‘community service organisations’ (CSOs) refers to registered community health centres, local

government authorities and non-government organisations that are not health services.

These guidelines are also relevant for Ambulance Victoria, Health Purchasing Victoria, Ramsay Health

Care and the Victorian Institute of Forensic Mental Health. The guidelines specify where aspects of the

guidelines are relevant for these organisations.

Department of Health & Human Services policy and funding guidelines 2015

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Volume 3: Human services policy and funding plan 2015–18

This volume, coloured green, applies to all organisations funded by the former Department of Human

Services.

The Department of Health & Human Services policy and funding guidelines 2015, Volume 3: Human

services policy and funding plan 2015–18 forms an integral part of the Service Agreement and is listed

as an applicable departmental policy in Schedule one of the Service Agreement. The Service Agreement

is the form of the Common Funding Agreement used to manage funding provided through the

Department of Health & Human Services for services delivered by community service organisations and

local government authorities.

Volume 3 provides funded organisations and departmental staff with information about the department’s

policy framework, objectives, budget, service deliverables, desired outcomes and reporting requirements,

program guidelines and funding initiatives.

Volume 3 is broken down into four chapters.

Chapter 1: Overview and key initiatives provides an overview of the portfolios, vision and

arrangements for funded organisations and introduces the most significant developments in funding and

government priorities for service delivery.

Chapter 2: Human services outputs budget information and unit prices details the pricing

arrangements for activities by which the department funds cso.

Chapter 3: Operational and program policies outlines the policies and legislation aligned to the output

groups.

Chapter 4: Activity descriptions details the requirements and service deliverables, target clients,

performance measures and data collections for each activity by which the Victorian Government funds

the human services sector.

Service Agreement: The Department of Health & Human Services monitors and reviews the

organisation’s compliance with the Service Agreement’s requirements set out in the terms and conditions

and schedules including the applicable departmental policies. The Service Agreement is used to manage

funding provided through the department for services delivered by community service organisations and

local government authorities.

The Service Agreement includes two applicable departmental policies: (1) Department of Health &

Human Services policy and funding guidelines 2015 and (2) Service Agreement information kit.

These applicable departmental policies support compliance with the Service Agreement terms and

conditions. The Service Agreement information kit provides information on the Service Agreement terms

and conditions (Chapter 3) including applicable departmental polices (Chapter 4) that apply to most

organisations with Service Agreements, for example, occupational health and safety. Therefore, the

Service Agreement information kit must be read in conjunction with the Department of Health & Human

Services policy and funding guidelines 2015.

Combined volumes for the sectors

For all health funding information, budget, cost weight and target tables go to

<www.health.vic.gov.au/pfg>.

For all community service sector funding information and activity tables go to

<www.dhs.vic.gov.au/policy-and-funding-plans>.

Department of Health & Human Services policy and funding guidelines 2015

Volume 1: Departmental overview Page 7

Appendix: Departmental divisions

Strategy and Analytics

Strategy and Analytics provides whole-of-department leadership in the areas of strategy and policy

development, inter-governmental relations, transformational approaches, workforce planning, system

intelligence and data analytics as well as longer term strategy development.

Additionally, Strategy and Analytics oversees and develops new policy approaches for client service

delivery as well as leading critical reform projects.

Health Service Performance and Programs

Health Service Performance and Programs draws together the key areas of interface with the health

service sector including Ambulance services, providing an integrated approach to health service

performance management.

It is responsible for health service programs and policy including acute and subacute programs,

outpatients, surgery, emergency care, governance (including clinical governance), consumer

participation, performance and reporting. In addition, it plays a critical role in capital projects and service

planning as well as oversight of key specialist clinical program areas including drugs, blood products and

new technology.

As part of this division the Ambulance branch plays a dedicated senior leadership role for ambulance and

patient transport services in Victoria, ensuring a tightly focused and responsive approach to ambulance

policy and performance. A priority for the branch is the design and implementation of a range of

innovative funding, service model and structural reforms to ambulance and patient transport services in

Victoria to increase efficiencies and improve the patient experience.

The division also has carriage for shaping the department’s approach to private hospitals including

regulation.

Mental Health, Wellbeing, Social Capital and Ageing

Mental Health, Wellbeing, Social Capital and Ageing draws together program activities across mental

health, drugs, ageing, aged care, prevention, population health, Aboriginal affairs, sport/recreation,

primary and community health and community and economic participation.

A strong focus on community wellbeing, mental health, wellbeing, social capital and ageing will ensure

better integration of many of the department’s community-based programs. It will also drive policy work

aimed at leading the development of initiatives to support positive individual and community outcomes in

education, employment and capacity building.

Social Housing and NDIS Reform

Social Housing and NDIS Reform leads the implementation of key reforms including the social housing

reform and the National Disability Insurance Scheme (NDIS). The deputy secretary of Social Housing

and NDIS Reform is also the director of housing, who is accountable for the exercise of functions under

the Housing Act 1983.

Regulation, Health Protection and Emergency Management

Regulation Health, Protection and Emergency Management consolidates and strengthens the

department’s regulatory, oversight and leadership functions. For community services it delivers the

monitoring and analysis of statewide service delivery standards and performance, including service

delivery performance analysis and analysis of incidents and adverse events, and identifies trends, issues

and risks for internally and externally delivered services.

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The division is responsible for overseeing the department’s regulatory rule-setting functions. This

encompasses the department’s traditional legislative regulatory functions, statutory oversight and review

roles, as well as its ethical review and health protection activities.

Health Protection, Regulation and Emergency Management also leads and coordinates statewide

responses to emergency events, with a strategic focus on preparedness planning and capability

development.

Executive Services

Executive Services leads the effective delivery of a range of services to the department’s ministers and

the Secretary. These include media and communications, legal services, key integrity functions, risk and

audit, freedom of information, cabinet and parliamentary services and records management.

Corporate Services

Corporate Services covers a critical range of corporate and enabling activities for the department

including:

people and culture

industrial relations

budget strategy and corporate planning

finance

procurement and contract management

information management and technology.

Service Design and Operations

Service Design and Operations is responsible for both the design and delivery of human services to best

meet demand and improve client outcomes. It oversees the translation of policy into operational service

delivery.

Service Design and Operations provides practice leadership for human services professionals in Victoria

and leads the design and development of innovative and integrated health and human services and

statutory functions.

Service Design and Operations also includes the department’s four operational divisions (West, North,

East and South), which are responsible for delivering human services and various statutory functions.

The division works with many agencies to manage risks and build relationships to support service system

coordination and performance monitoring at the regional level and coordinates public health emergency

management responses.

The operational divisions are also responsible for funding and monitoring providers who deliver a range

of non-clinical health and human services across the state. The operational divisions also provide post-

incident support to survivors of natural and man-made disasters.