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Organisational Governance and Performance Management Assignment

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University of Woolongong

   

Added on  2020-05-08

Organisational Governance and Performance Management Assignment

   

University of Woolongong

   Added on 2020-05-08

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Running Head: ORGANISATIONAL GOVERNANCE AND PERFORMANCE MANAGEMENTOrganisational Governance and Performance ManagementName of the StudentName of the University Author Note
Organisational Governance and Performance Management Assignment_1
1ORGANISATIONAL GOVERNANCE AND PERFORMANCE MANAGEMENTIntroductionThe outcome of the paper is the thorough literature review on the safety and qualitypractices in Australian health care for pricing and funding arrangements undertaken by the IHPAand commission. The aim of the assignment is to discuss the four funding models defined byEgar et al. (2013) as used by the public hospitals in Australia. Further, the system of the NationalEfficient price is critically discussed. In this regard, it is discussed as to how this system mayprovide an incentive to improve the health status of any selected segment of the Australianpopulation.Funding modelsThe four overarching models used by public hospitals in Australia, which are identifiedby the literature review of IHPA and commission are-1.Best practice pricing2.Normative pricing3.Quality structure pricing models4.Payment for performance or safety and quality pricing The “Best practice pricing” is the model that refers to use of the car pathways that arebased on strong evidence. The best solution is for treatment of the particular health condition andfor which the hospitals would be paid a set fee. Based on the best evidence, the price forimplementing this model of care is decided and an additional incentive is paid. There is a limitedliterature evaluating the efficacy of this model as this scheme represents the value for money. InEngland, the health care system had implemented the scheme of “Best Practice Tariffs”.
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2ORGANISATIONAL GOVERNANCE AND PERFORMANCE MANAGEMENTHowever, there is limited conclusive evidence except for the findings from the National HipFracture Database of UK (Eagar et al., 2013). As per the literature review by the IHPA on thismodel, the best practice pricing has modest gains with methodological inadequacies as evidencebased care pathways can be implemented for limited conditions. “Normative pricing” is the system where the price is used to influence the outcomes ofdelivery of care. It may be used in certain cases such as incentivising the day surgeries or whenthere is a need of more home care nurses, for a particular disability or illness, or where thepatient seeks residential care. Substantial improvement was noted by implementing this pricingsystem in the radiology area. There is a lack of conclusive evidence on the use of this pricingsystem due to uncertainty in determining the cost of implementing the new model (Eagar et al.,2013).In the “Quality structure pricing models”, the pricing or funding is linked with themeeting of the accreditation standards by the health care providers, participation in the safetyimprovement activities, quality registries, and clinical benchmarking. The aim of this system toincrease savings, however, there might be high initial cost. The pricing or the funding may behigh for accredited hospitals and then the non-accredited counterparts. There is strong evidencethat this kind of funding system leads to improvement in quality and safety (Eagar et al., 2013).However, it lacks the direct measuring of patient outcomes.The “Payment for performance” is the funding model that refers to pushing the careproviders to improve the quality and safety by behaving in certain manner. The model usesfinancial incentives for positive clinical outcomes or disincentives for poor services. It aims toencourage the service givers to increase the quality through rewards and penalty. There is a lack
Organisational Governance and Performance Management Assignment_3

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