Organisational Behaviour - Funding Models and NEP Impact on Australian Hospitals

This document discusses the funding models defined by Egar et al (2003) and analysis of funding model used in Australia hospitals and describing their usage. It also talks about the impact of NEP on incentive for improving health issues of selected type of segment of Australian population.

Running head: ORGANISATIONAL BEHAVIOUR
Organisational Behaviour
Name of the Student
Name of the University
Author note

1ORGANISATIONAL BEHAVIOUR
Table of Contents
Response to Question 1..............................................................................................................2
Identification of Funding Models Defined by Egar et al (2003) and Analysis of Funding
Model used in Australia Hospitals and Describing their Usage............................................2
Response to Question 2..............................................................................................................3
Impact of NEP on Incentive for Improving Health Issues of Selected Type of Segment of
Australian Population.............................................................................................................3
References..................................................................................................................................6

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Response to Question 1
Identification of Funding Models Defined by Egar et al (2003) and Analysis of Funding
Model used in Australia Hospitals and Describing their Usage
As discussed by Egar et al (2003), there are mainly four models of funding which are
used in different countries such as Quality or Safety Pricing, Quality Structure Pricing
Model, Normative Pricing, Payment for Performance Related Model. From the above, the
most appropriate model which is used in the Australian hospitals is safetyas well asquality
related pricing or the Payment related to Performance. The respective model includes
provisions of financial kind of services or the disincentives which are motivational in nature
for the specific responses or performances. In addition, the respective kind of payments are
channelled to District health services and clinicians for improving quality of the services that
has been revised in the later stage.
The Health institutions in Queensland includes day care operations which are
motivational, that helps in plummeting the wait days. The motivational type of services is
being paid to different civic hospitals at $50 to hundredfor each patient who have been
detected with cancer. Moreover, as commented by Vitry, Thai and Roughead (2015), through
the usage of Clinical Improvement related Programs, there has been increase in ABF through
Quality Improvement related Payments. The other kind of safety related initiative that
waspresented in the year 2011-2012 was creation of the Safety along with Quality
Investments with $8 million per annum. Under the same, the other initiative which was being
analyzed in the respective scenario was program related to improvement in funds of clinical
that was being introduced which was created the funds wherein project allocation grants have
been done (Sahin, Stewart& Porter, 2015).

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It helps in increasing the innovativeness of the ABF (Activity Based Funding) as well
as Management related changes in the western Australia. In the respective aspect, the
payment related to premium which are performance-based can be introduced that can
bepresented to the different services in Western Australia. It includes the fact that there will
be rewarding of the best performance of the different care which are provided, payments
which are being made for the service benefactorsfor the different additional costs which have
been incurred during the care related services (Sahin et al., 2016). There has been increase in
the financial disincentives which helps in discouraging the different services which are poor
which will be helpful in improving the quality of care provided.
Response to Question 2
Impact of NEP on Incentive for Improving Health Issues of Selected Type of Segment of
Australian Population
The NEP (National Efficient Pricing)has been successful in improving the funding of
the Australian communal hospitals as with the help of creation of the independent pricing
authority of Hospitals as the portion of the Agreements of the NEP related reforms through
which the NEP was made possible (Ryan et al., 2015) On a similar aspect, there has been
high level of enhancement in the calculation of the NEC of different services. There have
been different guidelines in pricing aspect which has been able to create different
improvements in communal health facilitieswhich is different in the ABF as well as block
funding. With the help of the guidelines, there has been proper formulation of the constant
kind of pricing for kind of service providers in both private and public hospital related
services that has been enabled. The different guidelines have been made introduced in such a
manner which has been capable of ensuring that there is the creation of the effective network

4ORGANISATIONAL BEHAVIOUR
of the different communal hospitals with increase in the overall worth of the community
related investments in the services of the hospital (Mossialos et al., 2016).
As commented by Mendelson et al. (2017), proper overview of the different
communal hospitals has been able to assist the general NEP which are suitable in funding the
services on the different kinds of activities. It has been suitable in enabling in classifying of
the different patients of the similar kind of types or conditions, wherein the costs as well as
treatments are included which will be improving the health-related services with funding of
the different quality services. The different facilities related to NEP helps in creating actual
type of costs for the different patients who are being diagnosed with the acute kind of
failures, which will be leading to elimination of the redundantproblems to the different
citizens. With the inclusion of NEP, it can be seen that the same can be suitable in enhancing
the growth prospects of the firm and it will be beneficial in improving the overall efficiency
of the services in the Australian economy in a suitable manner (Kunz, Neuhofz, &Rosellón,
2016). Through the proper introduction of NEP, it has the capability in creating effectual and
accurate kind of allocations related to cost that will be suitable in understanding
establishment of the services which can be enhanced and it will be beneficial for the country.
The different guidelines related to pricing through the help of the National Efficient
Pricing will be suitable in enhancing the overall transparency which is related to funding in
the different managerial approaches in hospital. There is high level of consistency in the
different activities related to payment and the system-based guidelines have been able to
minimize undesirable kind of consequences that is inclusive of the inappropriate kind of
incentives which are not called for (Huynh, 2018). It has been capable of managing the
patients. The National Efficient kind of Pricing has been capable of creating the different
changes wherein the main aim is at developing the funding related options for quality as well
as safety. Through the same, it has been possible in decreasing request of the different kind of

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services in the communal hospitals which helps in improving the health-related aspects of the
different Australians. Moreover, the different provisions which are related to bundled kind of
pricing has been the major result of the motivational service related quality that assists in
improving the patient’s health conditions leading to the different enhancement in services
related to healthcare.

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References
Huynh, T. D. (2018). Explaining Anomalies in Australia with a Five‐factor Asset Pricing
Model. International Review of Finance, 18(1), 123-135.
Kunz, F., Neuhoff, K., &Rosellón, J. (2016). FTR allocations to ease transition to nodal
pricing: An application to the German power system. Energy Economics, 60, 176-
185.
Mendelson, A., Kondo, K., Damberg, C., Low, A., Motúapuaka, M., Freeman, M., ...
&Kansagara, D. (2017). The effects of pay-for-performance programs on health,
health care use, and processes of care: a systematic review. Annals of Internal
Medicine, 166(5), 341-353.
Mossialos, E., Wenzl, M., Osborn, R., &Sarnak, D. (2016). 2015 international profiles of
health care systems. Canadian Agency for Drugs and Technologies in Health.
Ryan, A. M., Burgess Jr, J. F., Pesko, M. F., Borden, W. B., &Dimick, J. B. (2015). The early
effects of Medicare's mandatory hospital pay‐for‐performance program. Health
services research, 50(1), 81-97.
Sahin, O., Siems, R. S., Stewart, R. A., & Porter, M. G. (2016). Paradigm shift to enhanced
water supply planning through augmented grids, scarcity pricing and adaptive factory
water: a system dynamics approach. Environmental Modelling & Software, 75, 348-
361.
Sahin, O., Stewart, R. A., & Porter, M. G. (2015). Water security through scarcity pricing and
reverse osmosis: a system dynamics approach. Journal of cleaner production, 88,
160-171.

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Vitry, A. I., Thai, L., & Roughead, E. E. (2015). Pharmaceutical pricing policies in Australia.
In Pharmaceutical prices in the 21st century (pp. 1-23). Adis, Cham.