Victorian Mental Health Services Enterprise Agreement

Any public or health hospital concerned that considers that the funds received do not adequately reflect the costs it would incur to implement the “new” results of the company agreement may submit its case to the Ministry for verification. (As a first step, public hospitals and health services should make their own calculations based on the calculations described in the example above.) The ministry will verify these local calculations upon request. The more `localised` modelling method also implies a more direct link between EBA costs and the application of DFM indexation for each public hospital or health service as part of the establishment of appropriate additional funding levels. This in turn means that, if the division has calculated the indexation of the DFM as costs consistent with or above the EBA in a given financial year (or year), no additional funding will be made in the corresponding year (or years). While the “old” company agreement reached its nominal expiry date on 31 March 2016, the last salary increases to be paid under the “old” company agreement were to be paid on 31 March 2015 (nurses and other direct caregivers) and 1 April 2015 (health professionals, employees of related services, directors and officers). The first annual salary increase under the 2016 Ea Mental Health will take effect on October 1, 2016, which means that the public psychiatric services did not have to pay new salary increases to competent employees during the 2015-16 fiscal year. This was included in the ministry`s calculations regarding the ability of public psychiatric services to cover the costs of implementing EA mental health in 2016, including the payment of one-time lump sum payments in advance as part of the agreement. The seventeen hospitals and public health services concerned (“Public Mental Health Services”) mentioned in the EA for Mental Health 2016 have been required, since their commissioning, to provide the salaries and services it describes. Public hospitals and health services are reminded that the ministry does not finance 100% of their activities. Hospitals and health services typically have other sources of revenue, including Commonwealth funding and grants (e.g. B financing of care for the elderly), income from private practices and income from activities. The ministry only offers indexation of state funding.

Public hospitals and health services should set aside funds from these other sources to support the costs of company agreements. For the current round of business negotiations, the ministry referred more directly to the profile of the staff of each public hospital or health service concerned in its budget modelling than in previous cycles, where budget modelling focused more on “whole sectoral profiles”. This will eliminate some of the heaviest “swings and roundabouts” that may have emerged in the context of the previous approach. The ministry will not consider any review of the funding of this corporate agreement unless the public hospital or health unit has clearly and fully identified the nature and appropriateness of what is considered an “unfunded” cost.