5Hospital grants

5 Hospital grants

(1) In this Act, a reference to a hospital grant for a State in respect of a grant year is a reference to an amount worked out using the formula:

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where:

RCC (reduction in certain circumstances) means the amount determined by the Health Minister before 10 June in the grant year to be the estimate of the reduction in the amount otherwise payable to the State during the grant year under a health care grant (being a reduction required by the conditions of the grant).

SDA (sum of deductible amounts) means the amount determined by the Health Minister before 10 June in the grant year to be the estimate of such part of TAP as is the sum of the following amounts:

(a) the sum of the deductible amounts payable to the State during the grant year;

(b) the sum of the deductible amounts payable to a hospital, or to another person, during the grant year, being amounts that would have been payable to the State had the Health Minister been satisfied that the State was adhering to the principles set out in subsection 6(2) of the Health Care (Appropriation) Act 1998.

TAP (total amount payable) means the amount determined by the Health Minister before 10 June in the grant year to be the estimate of the sum of the following amounts:

(a) the amount payable to the State during the grant year under a health care grant;

(b) the amount payable to a hospital, or to another person, during the grant year under a health care grant, being an amount that would have been payable to the State had the Health Minister been satisfied that the State was adhering to the principles set out in subsection 6(2) of the Health Care (Appropriation) Act 1998.

(2) For the purposes of this section:

deductible amounts are amounts that relate to the following:

(a) mental health services;

(b) projects or programs of a kind referred to in paragraph 4(1)(b) of the Health Care (Appropriation) Act 1998;

(c) the critical and urgent treatment incentive program;

(d) the recognition of special demands arising from the Torres Strait Treaty;

(e) the transition from a 1993‑98 Medicare Agreement to another agreement or arrangement between the Commonwealth and a State, being an agreement or arrangement that specifies conditions applying to health care grants;

(f) a service, project or program, or a component of a health care grant, that is determined by the Health Minister to be a service, project, program or component in relation to which an amount payable is to be treated as a deductible amount.