Targets

• Why are the targets imposed on the PHOs and not set in consultation with them?Where there are exceptional circumstances which may impact on targets and the ability of a PHO to achieve the default targets and the PHO and DHB agree on this, there is a national process for validating this and accepting an alternative target. The DHB needs to contact the Programme team to activate this process.

• What happens if the PHO does not make their target, but still makes some improvement towards it? PHOs receive partial payment for partial achievement. The only instances where a PHO may receive no payment is where an indicator requires a minimum threshold to be achieved before any payment or the PHO makes no progress towards their target.
  
  Targets for the next period are reset depending on performance in the previous period.

For example:

Full Payment: If a PHO is required to move 5% points over the year and meets the 2.5% over each six month period then they will receive full payment for both six month periods.

If a PHO reaches their target in the first six months, then it is only necessary to maintain it for the second six months to receive full payment (100%).

If a PHO exceeds the target, the payment remains at 100%.

Partial Payment 1st 6mths, Full Payment 2nd 6mths: If a PHO is required to make 5% points over the year (2.5% each 6mths) but only makes 2.0% points’ improvement in the 1st 6mths then the PHO will be paid a partial payment for improvement and the baseline target will be recalculated to adjust for not making 2.5%. The PHO will still be expected to make 2.5% points’ improvement in the 2nd 6mths to be entitled for the full payment for the 2nd 6mths.

Full Payment 1st 6mths, Partial Payment 2nd 6mths: If a PHO is required to make 5% points over the year (2.5% each 6mths) and makes 2.5% points’ improvement in the 1st 6mths then the PHO will be paid the full payment for improvement. If the PHO does not make the expected 2.5% points’ improvement in the 2nd 6mths (only makes 2.0% points’ improvement) the PHO will receive a partial payment for the 2nd 6mths.

Partial Payment 1st & 2nd 6mths: If a PHO is required to make 5% points over the year (2.5% each 6mths) but only makes 2.0% points’ improvement in the 1st 6mths then the PHO will be paid a partial payment for improvement and the baseline target will be recalculated to adjust for not making 2.5%. If the PHO does not make the expected 2.5% points’ improvement in the 2nd 6mths (only makes 2.0% points’ improvement) the PHO will receive a partial payment for the 2nd 6mths.

• What happens if we do not meet any of the indicator % point increases in the first year, will we receive any financial support? If you make partial improvements you will receive some payment. There is an agreement that all PHOs that enter the programme prior to December 2007 will be entitled to receive a 25% minimum guaranteed payment of $1.50 per enrolled person (GST inclusive) for 12 months.

• Are the targets negotiable, as from an implementation point of view this is critical?The financial targets are negotiable at a DHB level.There is a national process available to PHOs and DHBs where both agree that there is an exceptional reason as to why the PHO may not be able to achieve the default targets. In this instance the DHB needs to contact the Programme team to activate this process.

• Are there any targets developed for information only indicators? Information only indicators do not have targets but we can provide you with information about the preferred target ranges. Targets have been developed for the 2yo immunization indicators and can be found in the Target Setting Document.

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