Activity based funding and management

Nurses doing patient survey to improve performance

What is activity based funding and management?

WA Health is responsible for ensuring the best use of tax payer funds in the delivery of safe, high quality care to the people of Western Australia.

Activity based funding and management is a way of funding and managing public health care in WA. It means that health services are paid for every patient they see or treat, taking into account the complexity of the patient’s healthcare needs. It provides a clear and open link between the money allocated by Government, and the health services delivered to patients and the community.  

What is meant by ‘activity’?

Activity is everything that WA Health does for, with and to patients, residents, clients and their families, carers and the community.

Activity based funding and management currently applies to the majority of acute health care in hospitals. This includes admitted patient care, outpatients, emergency department services, and subacute care.

Eventually activity based funding and management will extend to almost everything we do. This will include operations in hospitals, emergency department services, community care grants, chronic disease and preventative health programs, and education, training and research.

What is activity based funding and activity based management in WA?

The terms activity based funding (ABF) and activity based management (ABM) relate to the way the health service is funded and managed by the Western Australian Government.

ABF means that health service providers will be funded on the basis of expected activity. Previously, health services in WA were largely block funded on a historical basis.

ABM is the way WA Health plans, budgets, allocates and manages activity and financial resources to deliver safe, high quality health services for the WA community.

It ensures the community, clinicians, public servants and Government can access the information they need to make decisions about how and where we deliver healthcare across WA.

Find out more about the national ABF program.

Principles of ABF/ABM

  • Activity based funding and management is designed to improve care manage resources and deliver quality services
  • The patient, family and carers are the central focus of the care system.
  • Funding is transparently linked to health services and outcomes.
  • Evidence is available to ensure that performance can be managed.
  • Clinical leadership and partnership is required at all program levels.
  • Risks are identified, controlled and managed in a consistent manner.