PHNs need to shape up in three years or else, review warns
The Federal Government–commissioned review into the PHN business model found that immediate reforms were needed to governance and funding arrangements.
If the Federal Government cannot fix the business model for PHNs within three years, it should launch a not-for-profit body to oversee them, a review has recommended.
The government-commissioned review represents the first comprehensive analysis of the PHN business model since their creation in 2015 when Peter Dutton was Health Minister.
Taxpayers have since covered $12 billion in funding for PHNs despite their lack of serious measurable performance criteria, leading them to be dubbed a ‘black hole’.
Published in December, the new review found that inherent tensions in the business model had undermined confidence in PHNs and made for an unwieldy funding process, which ultimately restricted PHNs’ ability to respond to help communities.
