PHO shake-up plan attracts criticism

Barbara Bridger
Barbara Bridger
Otago and Southland district health boards are being asked to make radical changes to primary health organisations without information on the costs and benefits, Mornington PHO chief executive Barbara Bridger says.

At a special meeting tomorrow in Invercargill, the boards will be asked to reject South Link Health's proposal for a super primary health organisation in favour of one set up by the boards.

Chief executive Brian Rousseau will recommend the nine PHOs in the two regions are served with exit notices once a schedule for the establishment of the new organisation is confirmed.

It is understood the new organisation could be in place by July next year.

While Mr Rousseau's report to the boards includes national treasury spending forecasts and refers to the need for financial restraint and cost reductions, there is no Otago-Southland financial information or projections of cost savings, which might be expected under the new proposal.

The report makes no evaluation of the other five options considered in meetings with the PHOs. They were the status quo, approving the South Link Health proposal (but letting PHOs evolve at the same time), two urban and one rural organisations, one PHO for each board and " you tell us".

Ms Bridger, who wrote an open letter she hoped to send to both boards, was critical of the report, saying that while all the current PHOs accepted change was required, some amalgamations were likely when an incentive for PHOs with fewer than 20,000 patients was removed, as was expected to occur soon.

None of the PHOs appeared convinced the solution recommended was the best one.

The model of two urban and one rural organisations was favoured by some, but no analysis of this option was included in the report.

Ms Bridger said, potentially, the new PHO proposed by the boards could eventually hold the budget for all primary care - about $250 million - which would mean the boards would have abrogated their responsibilities for primary services to a single entity.

If the board wanted to make such a major change, it should provide evidence it would provide better health care for patients, she said, calling for a "robust due diligence" procedure and assessment of the financial implications.

She was concerned one PHO would be a " large, lumbering" organisation which would be slow to respond to community needs.

She has also questioned the need for haste when a national report on the future of PHOs had yet to be released.

Board members will be asked to approve the appointment of a 10-person transitional board to oversee change to the new body.

It would comprise a chairman, two district health board members, a board manager, two existing PHO chairmen, two GPs (one from each province) and two other community health service representatives (one from each province).

This board would be dissolved once the PHO became operational, to be replaced by a permanent board which would need to have representation from the community, Maori and other service providers, Mr Rousseau's report stated.

The report from Mr Rousseau suggested that one PHO model would cut down on duplication of services, allow greater integration of services and more ability for services to devolve from the hospital to the community setting.

Community services would continue to play an increasingly important role in maintenance of health and wellness with the establishment of Integrated Family Health Centres, facilitated by the PHO, which would provide for several health services to be offered on one site.

Concerns about the PHOs could be mitigated, Mr Rousseau has said, through subcommittees, advisory boards or other arrangements to represent geographic and demographic communities of interest.

Mr Rousseau noted that the Commerce Act precluded the merging of all existing PHOs into one entity.

• Primary health organisations (PHOs) are funded by district health boards to provide essential primary health care services to enrolled people. They bring together doctors, nurses and other health professionals.

 

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