More Commonwealth investment in hospitals
These landmark reforms will see:
- increased Commonwealth funding for public hospitals to improve financial sustainability;
- more efficient hospital funding through national Activity Based Funding;
- targeted funding of key pressure points, such as emergency departments and elective surgery;
- training of more doctors and nurses;
- investment in health infrastructure;
- greater transparency and public accountability in the health system; and
- more local control and focus in service delivery.
Taking an equal share in growth funding for hospitals
From 2014‑15, the Commonwealth Government will increase its contribution to efficient growth funding for hospitals to 45 per cent, increasing to 50 per cent in 2017‑18.
This will mean a genuinely equal partnership between the Commonwealth and the States and Territories in meeting growth in hospital costs. It will deliver at least $16.4 billion in additional funding for state health systems over the period 2014‑15 to 2019‑20. A first instalment of new growth funding, estimated at $574 million, will be paid during the forward estimates.
The Government's share of public hospital funding is projected to rise to around 40 per cent by 2019‑20, reversing the decline over the past decade.
The States and Territories are also receiving $3.4 billion over four years to improve emergency departments and elective surgery, and to provide an additional 1,300 sub‑acute hospital beds.
The Government will improve the transparency and accountability of funding flows through a single national funding pool for the payment of funds to hospitals and ensure better health system reporting through a National Health Performance Authority.
The Government is taking on a greater share of public hospital costs
