The Government undertakes an annual budget cycle which incorporates detailed submissions in relation to the funding requirements to maintain existing levels of health service for the following year. A key element of this is an assessment of the impact of;
a) enhancements in the models of care implemented during the year;
b) the introduction of new developments or new government policy;
c) the estimated demographic impact; and
d) inflationary pressures.
Due to multiplicity of potential factors that can occur in a year in the health system with future cost implications for subsequent years, the accuracy and relevance of estimates prepared beyond a twelve month period is limited and would be inconsistent with the government policy on annual budgeting.