Accident Compensation Corporation - Statement of Corporate Intent ...

section 3:
Operating environment and future risks
ACC is facing a number of pressures within its operating environment to which it must respond.
Established pressures
These are long-term pressures facing ACC for which mitigating strategies have been
established. They include long-run changes in the population and the rising cost of health care,
described in more detail below.
Changes to New Zealand’s population
In common with other developed nations, New Zealand’s population is ageing and experiencing
a growth in chronic conditions such as diabetes, obesity and arthritis. This means that a
growing number of ACC’s clients are presenting with pre-existing conditions, which tend to
make their rehabilitation more complex.
The broader increase in the number of older people has led to an increase in the number of older
workers. This group presents challenges for ACC as older workers are more likely to be injured
than the average worker.
ACC will be required to implement innovative approaches to manage the changing nature of its
client base. This may include the provision of more specialist case management, treatment and
rehabilitation services. A key focus for ACC will be on ensuring it has the operational capability
to identify and fund only those services that are required as a result of an injury.
Recent changes to ACC’s service delivery model show that the organisation is capable of
implementing significant change to how it manages claims. Thus, while an increase in the
number of complex claims will tend to increase costs, the organisation has demonstrated the
capability to respond to changes in its client base.
Rising health care costs
New Zealand’s health sector is facing the same pressures as those in other countries in the
developed world. In particular, the growth of medical technology and the persistent labour
shortage in the sector are increasing costs. Although ACC’s total expenditure on medical
treatment reduced in 2009-2010, the underlying trend remains for the price of medical services
to rise above the rate of inflation.
ACC must continue to deliver existing services and fund appropriate additional services as they
become available. While medical technology may have the potential to reduce costs in some
areas, the overall pressure on health care costs will continue to increase.
It is essential that ACC can demonstrate that the services it does purchase are necessary and
make a difference to clients’ rehabilitation.
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