Fee-for-service not working: Diabetes Strategy

Public health

17 Apr 2015

The current fee-for-service model is not working for diabetes and more innovative funding models are needed, the National Diabetes Strategy consultation paper states.

“The fee-for-service model does not incentivise long-term follow-up or the proactive care of people with chronic conditions. As such, more innovative funding models are needed that combine fee-for-service reimbursement with other payment types, such as population-based payments and quality-based payments,” the consultation paper said.

“The government could consider exploring (potentially through demonstration projects) an innovative combination of payment models, such as pooled funds, ‘medical homes,’ capitation payments, pay for performance, and pay for quality and outcomes based on performance indicators.”

“It is also worth considering funding arrangements for allied health professionals and CDEs,” it said.

The consultation is accepting feedback on the proposals until 17 May and will release a final National Diabetes Strategy later this year.

The paper lays out five key goals:

  • increasing the number of people who are screened and diagnosed early with diabetes
  • boosting the number of patients with diabetes receiving structured management programs in primary care
  • Reduce the occurrence of diabetes-related complications and improve quality of life among people with diabetes.
  • Reduce the impact of diabetes in Aboriginal and Torres Strait Islander peoples and other high risk groups
  • Strengthen prevention and care through research, evidence and data.

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