Update: NSW Health NGO Funding Reforms - February 2014

Funding reform update
NSW Health reported on the reform implementation process at the NGO Advisory Committee meeting on 12 February 2014. It was the first Advisory Committee meeting since October 2013. Working Group meetings were held in place of the scheduled December 2013 meeting.

Key developments are:

• Funding has been extended for most organisations under the existing Health NGO Grants Program until June 2015.
• A new standardised Service Agreement for grant funded services will replace current funding agreements from July 2014.
• A contestable funding framework will be phased in during 2015-16. Procurement will be staged and not all services will go out to tender at once.
• Program Areas are in the process of developing strategic purchasing plans to identify what services they want to procure from the NGO sector under the new funding framework. This process may be on-going for several months due to the complexity of the task.
• NSW Health established three working groups at the end of 2013 to progress reform implementation on Strategic Purchasing; Purchasing Criteria; and Service Agreements. They report to the NGO Advisory Committee.
• NSW Health is developing a formal communication strategy around the reform implementation process.
• A sector training program to support organisations with the transition to the new funding approach is also under development.

The next NGO Advisory Committee meeting is scheduled for 16 April 2014.

NSW Health updated its website on 26/02/14 with information about reform implementation at http://www.health.nsw.gov.au/business/partners/Pages/Implementation.aspx