Final Report on RREF 2001 - Department of Health

Part A: Background and Scope of the RREF Review
While this distribution of the total client population matches the birthplace distribution of the
Victorian population, four provisos need to be noted:
1. aggregate data on the total population born in non-English speaking countries do
not provide a view of variations in access between different ethnic groups;
2. there are marked variations in the concentrations of different ethnic groups in
different areas of the state;
3. the effect of factors other than age may have particular effects on the prevalence
of disability in some ethnic groups; and
4. access to available services is also affected by cultural considerations.
WHAT REVISION OF THE RREF CAN AND CANNOT ACHIEVE
Accepting that there is agreement that HACC resources should continue to be allocated to
regions through a needs based formula, the Review needed to clarify the range of outcomes that
revision of the RREF could be expected to achieve and, and what it could achieve.
Revision of the RREF has the capacity to address the inadequacy of the present formula in not
taking account of factors other than age that are seen to affect levels of handicap in local
populations.
Revision of the RREF will:
• redefine the level of per capita funding that achieves an equitable allocation
between regions on the basis of relative need, and
• result in redefinition of the shares of HACC growth funds that each region is to
receive in accord with this new definition of equity.
The RREF is only one of a number of measures that determine the funding of the HACC
program, and these other measures address issues beyond the current RREF or any revised
RREF.
Revision of the RREF will not increase the total level of resources available for the program.
The level of growth funds that become available each year is determined by the amount put
forward by the Commonwealth for matching and the level of matching funds put forward by the
Victorian government, and these amounts depend in turn on federal and state budgetary
processes.
The RREF will not affect the amount paid for services under service agreements between
providers and DHS. These prices are determined by the unit price cost structure established as
part of the DHS funding strategy.
Whilst special needs groups may be recognised in the formula, inclusion of such variables in the
RREF does not guarantee better access or more responsive service delivery for the groups
concerned. HACC Service Development Grants will have a continuing role in translating
resources that are made available into modes of service delivery that are responsive to special
needs.
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