The position was established by the National Health Reform Amendment (Administrator and National Funding Body) Act 2012 which amended the National Health Reform Act 2011(the NHR Act), and by the relevant legislation of each State and Territory.
The Administrator is supported by the NHFB which is also independent of all governments. Both are responsible for the oversight, administration and provision of advice on the funding arrangements that pool funding for LHNs from the Commonwealth, and State and Territory governments, (hereafter referred to as the Pool) and associated funding arrangements according to the NHR Agreement and relevant legislation.
The key functions of the Administrator, with the support of the National Health Funding Body are to:
- accurately calculate and advise the Commonwealth on its funding contributions to the National Health Funding Pool (Pool) in a timely manner.
- undertake best practice financial administration of the Pool, ensuring:
- the integrity of the payments system
- Commonwealth and State and Territory payments are correct and timely
- payments to Local Hospital Networks from the Pool follow government directions
- reconciliation between estimated and actual volumes of services and payments every 6 months.
- provide effective reporting on the monthly and annual funding arrangements to ensure transparency in the operation of the Pool.
- maintain productive and effective relationships with stakeholders and strategic partners, including all Australian Governments, the Independent Hospital Pricing Authority, the Australian Institute of Health and Welfare and the Australian Commission on Safety and Quality in Health Care.
On behalf of the Administrator, the National Health Funding Body also operates the Administrators Payments System (the Payments System). The Payments System is accessed by all States and Territories to enable payments into and out of the Pool to Local Hospital Networks and other organisations.