Womens Health Business Case Report

3.3.2 Projected Costs Projected levels of sustainable investment, which would ensure the continuity of the Women’s Health Program, have been modelled for the sector as a whole and for individual Women’s Health Centres, under three scenarios: Scenario 1: Sustain activities, service levels and outcomes for the Women’s Health Program which are currently contracted by Local Health Districts • Recalibrates costing for the current Women’s Health Program to reflect the major structural adjustments that have occurred • Represents the minimum level of Women’s Health Program funding required by Women’s Health Centres to remain viable and continue operating this program. • Scenario 1 is the base level of funding required for the Women’s Health Program to continue. Scenario 2: Sustain activities, service levels and outcomes for the Women’s Health Program which are currently being delivered by Women’s Health Centres • This reflects the minimum level of Women’s Health Program funding required by Women’s Health Centres to remain viable and sustain the levels of service delivery and outcomes that they are currently providing – over and above targets - to meet community needs. • Scenario 2 provides a strong indication of immediate and acute health needs in local communities and it is strongly recommended that the Ministry of Health consider funding the Women’s Health Program at this level. Scenario 3: Expand and enhance activities and service levels for the Women’s Health Program to address unmet need, population growth and emerging local health issues identified by each Women’s Health Centre • This reflects both unmet and emerging need in local communities identified by Women’s Health Centres. It indicates the scale of investment required to address current waitlists, turn-aways and unmet need, as well as allowing for expansion of the unique service model to growing, vulnerable populations. • We encourage the Ministry of Health, in consultation with Local Health Districts, to consider Scenario 3 and the potential for enhancing Women’s Health Program funding to this level in each local area. Sustainable delivery costs for each scenario have been calculated based on 2022-23 rates, with indexation of 5% applied to show funding required for 2023-24. No indexation has been applied to the forward years, 2024- 25 or 2025-26. As per current practice, it is assumed that proposed funding in the forward years would be escalated at an appropriate rate determined by NSW Government.

Projected costs for each modelled scenario are outlined below.

3.3.2.1 SCENARIO 1 - Sustain activities, service levels and outcomes for the Women’s Health Program which are currently contracted by Local Health Districts The proposed Scenario 1 investment in the Women’s Health Program is the baseline investment required for Women’s Health Centres to continue operating sustainably, and delivering the services and outcomes currently contracted under this program by NSW Local Health Districts. Annual indexation applied to the program has not kept pace with the major structural changes and other expectations for health services that have emerged over the last 36 years. Scenario 1 recalibrates costing for the current Women’s Health Program to reflect these major structural adjustments. Modelling for this scenario applies the standardised sustainability assumptions to the current (2022-23) level of activity and desired outcomes for the Women’s Health Program, reflected in individual contracts with Local Health Districts. Due to significant variability in the format of local funding agreements, activity levels for some service components have been estimated based on demonstrated delivery reported to NSW Health over the life of current contracts. 3.3.2.1.1 Scenario 1 – Proposed Investment Scenario 1 modelling indicates that the total funding of $10.56 million for the Women’s Health Program in 2022-23 fell short by approximately $7.53 million. Applying indexation of 5% to both costs and the existing Women’s Health Program grant, Scenario 1 proposes an increase in recurrent program funding of $7.97 million in 2023-24, which would bring the total annual Women’s Health Program grant to $19.06 million. Cost benefit modelling estimates that this investment would result in a minimum of $32.6 million in avoided costs for NSW Government in 2023-24, representing a return on investment of 71%. Scenario 1 modelling for the Women’s Health Program at 2023-24 rates is shown below. Our modelling assumes that indexation would be determined annually by the NSW Government and NSW Health, and applied to each of the forward years as per standard funding arrangements.

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Sustainable Investment in the NSWNGOWomen’s Health Program