What is the national ABF program?

The local activity based funding and management program started in Western Australia in 2010. The national ABF program started in July 2012.

The national program is part of the National Health Reform Agreement which all states and territories signed in August 2011.

This agreement established a number of national bodies including the Independent Hospital Pricing Authority (external site), the National Health Performance Authority (external site), and the National Health Funding Body (external site). It also established the Australian Commission on Safety and Quality in Health Care (external site) as an independent statutory authority.

The main role of the Independent Hospital Pricing Authority is to calculate and deliver and national efficient price (NEP) for public hospital services. It also decides on the pricing for teaching, training and research as well as pricing for quality and safety measures. These NEPs are used in ABF calculations.

The national ABF implementation for mental health, sub-acute and other non-admitted public hospital services began 1 July 2013.

From July 2014, Commonwealth funding to jurisdictions will be calculated on the basis of reported activity.

WA continues to work with the IHPA to develop and refine the national ABF implementation.

For more information about the national ABF program in WA, contact the team at abf.national@health.wa.gov.au