Hospital Circulars

Hospital Circular 20/2001

Date Issued: 3 October 2001

Publication: 20/2001

Distribution: Chief Executive Officers Public Hospitals & Health Services

Subjects: Payment of 1 April 2000 Salary Increase to Medical Administrators

Purpose: To provide additional information regarding the application of Commissioner Blair's recommended medical staff salary increases to staff engaged in medical administration roles.

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Background

In June 2000, Commissioner Blair recommended a range of salary increases for medical staff employed in Public Hospitals and Community Health Centres. These salary increases ranged from 3.5% for first year Hospital Medical Officers, to 15% for senior Full-Time Specialists.

Commissioner Blair's recommendation was made in response to an industrial dispute by medical staff at some hospitals over the effects on remuneration of changes to Federal Fringe Benefits Tax (FBT) legislation.

The effective date for these salary increases was 1 April 2000 - the date on which the new FBT legislation came into force.

Application to Medical Administrators

Commissioner Blair's recommendation was silent on the issue of Medical Administrators, therefore making no provision for a salary increase for these staff.

In the agreement reached between the Government and the Australian Medical Association (Victoria) [the AMA], there was an undertaking that the relevant recommended increases would flow to Medical Administrators based on existing relativities between Medical Administrator and Full-Time Specialist classifications (see Attachment below for examples).

Definition of Medical Administrator (DHS View)

The Department views Medical Administrators as those medical staff employed in Medical Administrator classifications as defined in the Hospital Specialists and Medical Administrators Award 1992 and engaged under employment arrangements pursuant to that Award or related agreements.

It was not the Department's intention that the increases would apply to medically qualified staff employed as Executives. In these cases, Government Sector Executive Remuneration (GSER) guidelines apply.

GSER guidelines proscribe salary bands for the generic position of Director, Clinical Services in all the Metropolitan Health Services. The GSER Panel has also applied these bands to the corresponding positions at Barwon Health, Ballarat Health Services, Bendigo Health Care Group and La Trobe Regional Hospital.

Under GSER guidelines, salary increases for staff engaged in these positions are limited to a maximum of 6% over two years. Further, GSER guidelines do not provide for the approval of increases on the basis of changes to FBT legislation.

Dispute with AMA

The AMA, through the Australian Salaried Medical Officers' Association, has notified a dispute in the Australian Industrial Relations Commission with regard to these intended exceptions.

The AMA believes that there should be no exceptions to the flowing of Commissioner Blair's recommended salary increases for Full-Time Specialists to staff employed as Medical Administrators in any capacity.

The parties have been, and are continuing to discuss this matter.

Recommendations

Until the dispute is resolved, no further action should be taken to flow these salary increases to Medical Administrators who fall into the Department's "exception" category. Similarly, where the increase has been flowed to such staff, the status quo should be maintained at this time.

In all other cases, there is no barrier to flowing the abovementioned salary increases to Medical Administrators, based on the Award relativities described above, where this is appropriate.

Further Information

Any queries related to the above should be directed to Simon Chant on telephone 9616 2583, or by email addressed to simon.chant@dhs.vic.gov.au.

Lance Wallace
Director, Resources

Attachment

Full-Time Specialists and Medical Administrators - Award Relativities

Where the Award salary rate for a Medical Administrator classification aligned with the rate for a Full-Time Specialist classification, the salary increase applicable to the Full-Time Specialist classification would apply.

For example:

• the Award rate for a Deputy Director of Medical Services, Grade 1B, Year 1, is equal to the Award rate for a Specialist - therefore, a 12% increase would apply;
• the Award rate for a Director of Medical Services, Grade 1B, Year 1, is equal to the Award rate for Senior Specialist, Year 5 - therefore, a 15% increase would apply.

Where the Award rate for a Medical Administrator classification did not align with a Full-Time Specialist classification rate, then the salary increase applicable to the Full-Time Specialist classification with an Award rate that most closely matched the Medical Administrator classification rate would apply.

For example:

• the Award rate for a Deputy Director of Medical Services, Grade 2, Year 1, is closest to the Award rate for a Specialist - therefore, a 12% increase would apply;
• the Award rate for a Director of Medical Services, Grade 1A, Year 2, is closest to the Award rate for Senior Principal Specialist - therefore, a 15% increase would apply.