3.1 Outcome performance report
The National Blood Authority's performance is reported against the agency outcome and output groups of the Health and Ageing Portfolio Budget Statements 2006–07.
NBA's outcome—'Australia's blood supply is secure and well managed'
Table 4 sets out an extract from the Portfolio Budget Statements 2006–07 for the Health and Ageing Portfolio and highlights performance information for the National Blood Authority in 2006–07.
The National Blood Authority's major activities for 2006–07, as specified in the Department of Health and Ageing's Portfolio Budget Statements, were to:
- implement effective and accurate demand and budget forecasting analysis and planning The National Blood Authority will provide accurate and timely advice for policy decision making in the blood sector and develop the National Blood Authority's capability to enable the effective and accurate delivery of the supply of blood products.
- identify key gaps in supply chain capability including information exchange This will allow the National Blood Authority to measure and monitor procurement performance and ensure continuous improvement of the supply of blood products. It will also enhance supplier accountability and responsiveness by implementing contract management tools and effective contract management relationships.
- effectively engage with the clinical community in monitoring and approving the appropriate use of blood to improve patient outcomes The National Blood Authority will develop an engagement strategy to ensure the involvement of the clinical community in developing standards and guidelines, to influence appropriate and safe use of blood products.
- create capabilities in processes and systems to institutionalise organisational knowledge and reduce reliance on key staff The National Blood Authority will pursue accreditation as a quality organisation and implement an information management system which allows the National Blood Authority to share information both internally and also with other stakeholders in order to improve communication and information sharing in the blood sector.
Performance indicators
This section reports against the NBA's results in these and other areas over the 2006–07 reporting period and comments are offered on the performance indicators relevant to the output.
Efficient management and coordination of Australia's blood supply
To ensure efficient management and coordination of Australia's blood supply, the National Blood Authority has supply contracts with various suppliers of blood and blood-related products, which it manages closely to ensure that demand for blood and blood-related products is always met.
Table 5 shows these suppliers, from whom the National Blood Authority purchased $601.7 million worth of blood and blood-related products in 2006–07.
In 2006–07 the National Blood Authority managed 17 supply contracts and arrangements. Of these, three were newly negotiated and 10 were subject to variation. Table 6 sets out the new contracts that were negotiated and concluded in 2006–07.
The National Blood Authority also managed 17 ongoing and new corporate operational contracts and panel arrangements for the delivery of outsourced arrangements, consultancies and other professional goods or services.
Improvements in price and product quality
The National Blood Authority has negotiated contracts with suppliers that have provided recurring annual savings to the jurisdictions for the supply of blood and blood-related products since 2003–04. Savings for 2006–07 are estimated at $20 million based on a comparison of prices that would have been paid under previous contracts. The apportionment of savings by key blood producers is depicted in Figure 5.
These price savings have been achieved at the same time as improvements in product quality. For example, feedback from people with bleeding disorders on the range, quality and service support for the new products has been positive. This is reflected in the uptake of these products—see Figure 10.
National administered budget performance
The National Blood Authority administered budget is completed annually as part of the National Supply Plan and Budget process agreed by the Australian Health Ministers' Conference. The National Blood Authority, in consultation with jurisdictions, reviews the National Supply Plan and Budget annually as part of a mid-year review process to adjust jurisdictional funding requirements as a result of the first six months' expenditure. As depicted in Figure 5, the National Blood Authority's performance in forecasting and managing the National Supply Plan and mid-year review budget has progressively improved since its inception. In 2006–07, actual expenditure varied by less than 1 percent against the original National Supply Plan and Budget. The budget for 2003–04 was not set by the National Blood Authority, as the organisation was not established until 1 July 2003.
Original Australian Health Ministers' Conference (AHMC) Budget and mid-year review budget for the supply of blood and blood-related products since the creation of the NBA