For 2013-14, the Commonwealth is providing funding to each state and territory equivalent to the amount that would otherwise have been payable through the former National Healthcare SPP (clause A33). This amount is divided into the following funding streams:

1. An amount for public health activities in 2012-13 indexed by the former National Healthcare SPP growth factor.

2. Discrete amounts, calculated by the Administrator based on the Independent Hospital Pricing Authority (IHPA) National Efficient Cost (NEC) Determination (clause A27), as endorsed by the Council of Australian Governments for:

  • Block funded public hospital services provided at each Local Hospital Network (LHN);
  • Teaching and training functions performed at each LHN or other organisations (such as universities and training providers); and
  • Research functions performed at each LHN.

3. The residual amount is divided between the following Activity Based Funding (ABF) service categories based on the IHPA National Efficient Price (NEP) Determination and state and territory National Weighted Activity Unit (NWAU) service estimates for the following:

  • Emergency department services
  • Acute admitted public patients
  • Eligible admitted private patients
  • Mental health services (not already captured by clause A33(c)(i))
  • Sub-acute admitted public patients
  • Eligible non-admitted patient services

Subject to further adjustments for cross-border arrangements, the residual amounts at step 3 represents the funds available for Commonwealth ABF funding for each state or territory.