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Consultation on a joint ACC and Ministry of Health funding model for emergency ambulance services

Wednesday 3 November 2010, 10:47AM

By ACC

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The National Ambulance Sector Office (NASO) is seeking submissions on options for a joint ACC and Ministry of Health funding model for emergency ambulance services (both road and air).  

Currently, both ACC and the Ministry of Health fund emergency ambulance services, using two different approaches.  The Ministry of Health currently bulk funds ambulances for services while ACC pays on a fee-for-service basis for clients transported. 

The National Ambulance Sector Office (NASO) is undertaking the consultation process on behalf of ACC and the Ministry of Health and the consultation discussion document has received Cabinet Committee approval.   

“Consistent funding between the Ministry of Health and ACC will result in an easier to manage system for providers and address current anomalies that exist due to the different approaches,” said NASO Group Manager Carol Clayton.   

The consultation document and information about how to make a written submission are available at www.naso.govt.nz.  Submissions close at 5pm on 15 December 2010. 

Further information 

·        The development of a transparent funding model to ensure a consistent agreed basis for funding providers, is an initiative of the New Zealand Ambulance Service Strategy approved by the Minister of Health and Associate Minister for ACC in 2009. 

·        Consultation is on the way services are funded, not the total amount of funding by Government (approximately $148 million a year).  

·        There are two preferred options for funding emergency ambulance services.  They are:

Blended capacity funding and fee for service – a two tiered approach would be taken, with part of the funding being capacity based, based on the fixed costs of providing the service combined with a fee-for-service component based on the marginal/variable costs of providing services. 

Blended bulk funding model - ambulance services would be funded to an agreed level each year to provide an agreed level of services.  There would be a buffer to allow for some variation to the agreed level and then a fee-for-service paid for services over the buffered level. 

·        The consultation excludes funding for the ambulance communications centres (which receive bulk funding from both Agencies) and DHB funding for patient transfers from one hospital to another.  

·        Communities provide an important source of ambulance funding (eg fundraising, grants and donations) and this will continue to be acknowledged as a vital part of emergency ambulance services. 

·        Emergency ambulance services provide essential first responses to medical and accident emergencies. New Zealand’s ambulance services are highly respected and trusted.  Every day, hundreds of people rely on emergency ambulances (both road and air ambulances) to treat and/or safely transport them to healthcare facilities around the country.   

·        This consultation is totally separate to the transition of ambulance services occurring in Taranaki.