Public hospitals across the country will be funded in record terms for the next five years, after all states and territories signed the Morrison government`s new health system reform agreement. From 1 July 2020, J – Addendum to the National Agreement on Health Reform: Revised public funding for hospitals and health system reform come into force. [PDF 2.71MB | DOCX 182KB] States are also funded to provide more flexible care, including home hospital care, to help patients where and when they need it. I am a competition and regulatory advocate with a focus on the health care industry. As part of my practice, I advise large private insurers and work for other clients in the healthcare sector, such as pharmaceutical companies, health services and public health services and legal institutions. The aim of the agreement is to “commit, through this agreement, to improving health outcomes for all Australians and ensuring the sustainability of Australia`s health system” (paragraph 12). Bilateral Agreement on Coordinated Care Reforms (SPPs) In August 2011, COAG approved the National Health System Reform Agreement [PDF 1.10MB] which sets out the common intention of Commonwealth, state and territory governments to work in partnership to improve health outcomes for all Australians and ensure the sustainability of Australia`s health care system. With this agreement, we will ensure that Australia`s health care system remains one of the best in the world and that it delivers the best health outcomes for Australians. Bilateral Agreements on Minimum Commonwealth Funding for Public Hospital Services It is important that public health changes are beneficial, such as the new additive: NHRA codifies the common intention of Commonwealth, state and territorial governments to work in partnership to improve health outcomes for all Australians and ensure the sustainability of Australia`s health care system.
The first NHRA was signed in 2011 and introduced major changes in the way public hospitals should be funded by Commonwealth, state and territory governments. The most significant change was the shift from bulk financing to an essentially “activity-based” funding model (ABF). In July 2017, some changes were made to the NHRA regarding public funding of hospitals between July 1, 2017 and June 30, 2020. These changes have preserved the ABF model and have focused on reducing unnecessary hospitalizations and improving patient safety and quality of services. Permanent Council on Federal Financial Relations, 2012. Canberra. National Healthcare Agreement 2012. From May 1, 2019, from July 1, 2012, the National Healthcare SPP was replaced by funding for national health system reform.
The new addendum includes two new sections in calendar G (Business Rules). Hospitals will continue to provide data on privately insured patients who are hospitalized in a public hospital to private insurers, in accordance with the application form for private patients. Local Hospital Networks and the Australian Institute for Health and Welfare are required to ensure that data on privately insured patients treated in a public hospital is made available to insurers in accordance with the Private Health Insurance Act 2007 Private Health Insurance Rules ( The reforms aim to facilitate flexible, quality care tailored to the needs and preferences of Australians and to reduce pressure on hospitals. In total, the Commonwealth is expected to invest $131.4 billion in demand-driven public hospital resources to improve health outcomes for all Australians and ensure the sustainability of our health care system now and in the future. The new addendum also provides that from 1 July 2020, the Administrator will identify bodies that should not have qualified for the payment of Medicare, PBS or private health insurance, and pass it on to the relevant Commonwealth official in order to encourage compliance activities.