The basis used to determine NHR payments to the Australian Capital Territory LHNs was advised by the ACT Health Directorate to be as follows:
The annual funding allocation for the ACT in 2015-16 is based on budget-neutral modelling. This modelling is predicated on the historical cost of providing hospital services plus wages and non-wages indexation. The activity for activity-based funded services is derived using historical activity levels plus an allowance for reasonable growth in public hospital services for the current year. The weighted activity is measured and funded based on the full Independent Hospital Pricing Authority pricing model and framework parameters.
The monthly payments made by ACT Health to the ACT Local Hospital Network using ACT Government and Commonwealth Government funding are net of third party revenues and are paid on the basis of estimated ACT Local Hospital Network activity for the month.