PART C - AGENCY BUDGET STATEMENTS -DEPARTMENT OF VETERANS' AFFAIRS
SECTION 4 - PURCHASER/PROVIDER ARRANGEMENTS
Cross Agency Overview
Responsibility
Control arrangements
Resourcing
Performance Against Outcomes and Outputs
CROSS AGENCY OVERVIEW
The Department of Veterans' Affairs has a purchaser/provider relationship with the Health Insurance Commission (HIC) for the processing and payment of health care provider treatment accounts. The HIC provides to the Department of Veterans' Affairs services for Output 2.1 - Arrangements for the delivery of services.
The Department of Veterans' Affairs provides compensation and rehabilitation services to the Department of Defence under a Memorandum of Understanding (see Outcome 5).
The Department of Veterans' Affairs contracts at various locations for Centrelink to provide information and referral services. The arrangements are specific to each location and in many instances are the outcome of a competitive tender for provision of services.
The Department of Veterans' Affairs has a purchaser/provider relationship with the Department of Defence for the processing and payment of accounts that are not already processed through the Health Insurance Commission
The Department also has contracts with a wide range of providers in addition to those cross agency arrangements.
RESPONSIBILITY
The arrangements between the two agencies for the processing and payment of health care provider treatment accounts are detailed in the Memorandum of Understanding between the Repatriation Commission, the Commonwealth of Australia represented by the Department of Veterans' Affairs, and the HIC.
Compensation and rehabilitation services to Defence are managed through a Memorandum of Understanding.
The arrangements for processing non-treatment accounts are detailed in the Memorandum of Understanding between the Departments of Veterans' Affairs and Defence.
In the case of activities undertaken by Centrelink, these are detailed in contracts specific to each location.
CONTROL ARRANGEMENTS
In the Memorandum of Understanding for payment of health care provider treatment accounts, the HIC undertakes to provide quarterly reports to the Repatriation Commission. These reports include a broad financial summary including comparisons of estimated and actual revenue and expenditure and proposals for dealing with changes in budget forecasts. Performance against defined criteria is also reported on quarterly.
Compensation and rehabilitation services to Defence are managed through a Memorandum of Understanding.
Accounts payable services are managed through a Memorandum of Understanding between the Departments of Veterans' Affairs and Defence.
Agreements with Centrelink specify various reporting arrangements relating to the frequency and type of veterans' services provided at each site.
RESOURCING
The purchase of services from the HIC for processing and payment of health care provider treatment accounts is resourced through Output 2.1 with a budgeted price of $17.6m for 2003-04.
Resourcing of compensation and rehabilitation services are set out in Table 2.5.1 in Outcome 5.
Resourcing of Centrelink contracts reflects periodic payment for contracted services.
The purchase of services through Defence for accounts payable processing is budgeted to be $1.2m in 2003-04.
PERFORMANCE AGAINST OUTCOMES AND OUTPUTS
Performance requirements by HIC, Defence and Centrelink are specified in the respective memorandum of understanding and contracts. These contribute towards the overall achievement of Outcome 2 (for HIC), Outcome 4 (for Centrelink) and Outcome 5 (for Defence) and all outcomes (for Defence covering Accounts Payable Services).

