Key messages

  • The mandatory cross charging for specialist services and payment for equipment and consumables from satellites to hub dialysis providers has been changed from 2016-17
  • Satellites are now responsible for ordering and funding pathology
  • Satellites may choose alternative suppliers for their equipment and consumables
  • Hubs remain responsible for specialist support.

Summary of funding policy

The flow of funding for renal dialysis activity includes a defined mandatory cross-charging arrangement between satellite and hub providers.  Funding flows between these health services for each renal dialysis separation.

Changes to the flow of funding between satellites and hubs

The department pays all the funding to the dialysis provider (satellite) with a mandated payment then passed by the satellite to the hub for specialist service support, consumables and equipment (figure 1). Up until 2015-16, the department has mandated the specific amount paid to hubs per separation.  From 2016-17 the department is changing one of the mandatory cross charging items – pathology – and introducing a choice for satellites to select the supplier of their dialysis equipment and consumables. 

Figure 1: Flow of funding and responsibilities associated with renal dialysis service

Image showing flow of funding and responsibilities associated with renal dialysis service

Responsibility for pathology

Pathology tests are ordered by the satellite provider.  From 2016-17 the satellite will also be responsible for paying for the tests using part of the cross charged funding. This arrangement aligns the responsibility for both ordering and payment of pathology tests with the dialysis provider. 

Responsibility for equipment and consumables

Health Purchasing Victoria has negotiated a set of panel prices for dialysis equipment and consumables for all health services which  allows health services to access the same price regardless of the volume they need to purchase.  The department is giving satellites the opportunity to access these lower prices by allowing satellites the choice to select their supplier rather than only purchasing from their hub.  Satellites are able to take up this opportunity as and when current contracts expire.

Further information 

Manager, Renal Program
Phone: 61 3 9096 7374