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Corporate Plan
1. Role
2. Values and Behaviours
3. Vision
4. Our Environment
5. Risk Management Framework
and Key risks
6. Key Areas of Improvement
7. How PHIAC will undertake its
task
8. Measuring Performance
9. Resource Summary
10.Communication and Review
11.Strategic Planning Framework
12.PHIAC Structure
1. Role
PHIAC is established under the Private Health Insurance
Act 2007 and reports to Parliament through the Minister for Health and
Ageing. Its core functions are:
- To oversee the financial viability of the registered
private health insurance organisations;
- To discharge its responsibilities defined under the
Private Health Insurance Act;
- To protect the interests of consumers; and
- To collect and disseminate information on the private
health insurance industry.
PHIAC is responsible for establishing prudential standards,
regulating the financial performance of the industry, calculating the
risk equalisation pool, reviewing pricing applications, and registering
private health insurance organisations. PHIAC also produces statistics
on membership and coverage, gap payments, prostheses and the financial
performance of the industry.
2. Values and Behaviours
PHIAC will undertake its legislative responsibility with
professionalism, accountability, leadership and integrity in line with
Australian Public Service (APS) values.
PROFESSIONALISM, THROUGH
- Consistent learning and improvement
- Partnership with industry
- Teamwork and sound interpersonal relationships
ACCOUNTABILITY, THROUGH
- The highest ethical standards
- Fair dealing and respect by developing and maintaining
a good working relationship with industry associations and with individual
organisations
- Cost effective regulation and consultation with industry
on key areas of change
- Managing resources effectively
- Clear reporting standards for both PHIAC and the
industry
- Accurate data collection and dissemination
- Improved capacity to identify and manage risk
LEADERSHIP, THROUGH
- A model of good corporate governance for the industry
- Supporting the industry through periods of change
- Undertaking a regulatory role which promotes a financially
viable industry
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INTEGRITY, THROUGH THE AUSTRALIAN PUBLIC SERVICE VALUES
PHIAC is a Commonwealth statutory authority with the
principles and values of the Australian Public Service:
- Executing its functions in an apolitical, impartial,
effective and professional way with the highest ethical standards;
- Accounting for its actions within the framework of
Ministerial responsibility to the Government, Parliament and the Australian
public;
- Responsive to the Government in providing frank, honest,
accurate and comprehensive advice;
- Focusing on achieving results and managing performance;
and
- A fair, flexible, safe, non-discriminatory and rewarding
workplace.
PHIAC Service Principles
In discharging its duties, the Council will:
- Respect diverse views, being open to difference
- Give its full commitment and focus
- Respect the principle of Board solidarity to give
the organisation effective support, and
- Give strong support for the executive by providing
constructive challenge
Within the Council the role of the Commissioner is
to:
- Develop the Board as a team, providing leadership,
support and cohesion, and
- Ensure that meetings balance time for policy and strategic
thinking with supervisory requirements
In working with shareholders and customers:
- PHIAC staff will be courteous and professional
- Provide a high quality of service
- Respond promptly to queries
- Provide information and risk equalisation outcomes
in a timely manner
- Be accurate and up to date.
3. Vision
PHIAC aspires to be an efficient and effective regulator,
working constructively with the industry to protect the interests of policy
holders to registered organisations.
PHIAC’S VISION WILL BE REALISED IF:
- There is a clear set of prudential standards for
the industry;
- PHIAC manages its regulatory functions in a transparent
and accountable manner;
- Policy holders are protected in the event of a failure
of a registered organisation; and
- PHIAC is regarded as an accurate and reliable data
source and a source of good advice on the industry.
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4. Our environment
Critical to PHIAC’s success is our ability to recognise
and respond to changes occurring in the health environment which impact
directly upon the health funds and therefore on PHIAC.
Key environmental issues facing PHIAC include:
- The continuing trend towards the private sector in
health utilisation
- Increasing community demands and expectations along
with an ageing population
- Pricing control and the private health insurance rebate
and the relationship with profitability
- Broader health cover and the changes to the health
insurance policy framework
- The need for PHIAC to maintain corporate capability
within a workforce management framework which includes outsourcing of
advice and services
- Implementation of the new legislation governing the
private health insurance industry
- The demutualisation and listing of some private health
insurers
- The probable sale/listing of Medibank Private
- Possibility of significant industry consolidation
- The possibility of an economic downturn with a risk
to fund investments and income
Developments in the wider business environment including:
- Continuing attention to sound corporate governance
- The adoption of international accounting standards
- Industry demutualisations and possible consolidation
5. Risk Management Framework and Key Risks
PHIAC has a risk management framework that is an integral
part of its operations. There is an overarching risk management plan for
PHIAC as a whole with individual risks being managed at the operational
level. This Corporate Plan has been developed with the risk management
plan in mind.
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6. Key Areas of improvement
Through Through the implementation of the strategies
outlined under each Key Result Area we expect to achieve the following
critical success factors:
- Increase staff numbers and skills
- Ensure the leadership of PHIAC is effective
- Build capacity to deal with increased corporate activity
- Invest in key relationships and manage perceptions
- Leverage our information and build our knowledge base
– analytical and IT capacity
- Strengthen and formalize our approach to industry
governance
- Working with and on behalf of our stakeholders:
- Minister for Health and Ageing and the Department
- Registered private health insurance organisations
- Policy holders of registered private health insurers
7. How PHIAC will undertake its
tasks
PHIAC will undertake its tasks by focusing on seven Key
Result Areas.
KRA 1 - Business as Usual - Ensure core functions are
managed and deadlines met
KRA 2 - Planning for change - Building capacity in
staff skills and management
KRA 3 - Governing PHIAC - Managing leadership change
KRA 4 - Building Capacity - Develop PHIAC’s ability
to deal with corporate activity
KRA 5 - Investing in Relationships - Invest in key
relationships and manage perceptions
KRA 6 - Industry Governance - formalize and strengthen
PHIAC’s approach to industry governance
KRA 7 - Information - Leverage PHIAC’s information
and knowledge base
8. Measuring Performance
PHIAC has a set of Key Performance Indicators in the
Business Plan developed from the Key Result Areas. Our progress and performance
will be measured by PHIAC Board against those indicators and reported
in our Annual Report.
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9. Resource summary
PHIAC has the following resources available:
- A highly professional and well trained staff
- An independent, highly skilled and experienced Board
- Access to external specialist industry advisers who
can provide prompt, expert advice, and
- Ability to contract in services where necessary to
undertake specific tasks such as fund reviews
Financial Resources
PHIAC has a budget for 2007-08 of $4.824 million.
Personnel Resources
The diagram illustrates the
Secretariat reporting structure.
10. Communication and Review
PHIAC will communicate our Corporate Plan to the industry
by providing a summary of the Plan to all health funds and other stakeholders.
The detailed Corporate Plan will be provided to the Minister and his Department.
The plan and its outcomes will be reviewed in 2008.
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