Phn Funding Agreement
The new funding model of the NHP and the longer-term approach to tendering are a welcome change. Lucy Brogden, chair of the National Mental Health Commission, said a one-year contract was “just not a good way to work.” The Minister stated that the new funding procedure will improve the ability of NEPs to ensure that services can be put into service on time and to ensure longer-term financial security for the sector. One of the most significant changes for the sector is the transition to a new NHP funding model, which extends funding for mental health services by three years. Each year, funding is extended by an additional year if the NHP meets the agreed performance measures. This will create three years of financial security and benefit community mental health organizations, which will no longer be forced to re-tender for services each year. Minister Hunt announced that the 31 NSPs will share $1.45 billion over the next three years for the commissioning of psychiatric services. The financial envelope includes: the short-term nature of financing contracts has been regularly cited as a problem by QAMH members, particularly in rural and remote areas, where there are additional challenges in service delivery and staff recruitment. QAMH will provide further updates on these changes as more information becomes available. Please contact us if you have any questions. The commitment of $1.45 billion and three years represents an increase of $170 million over the previous three years.