The basis used to determine National Health Reform (NHR) payments to Local Hospital Networks (LHNs) in the Northern Territory was advised by the NT Department of Health to be as follows:

The annual funding allocation for the Top End and Central Australian Hospital Networks of Northern Territory has been determined on a historical basis for both the Activity-Based Funding (ABF) and block service streams, supplemented by a level of growth based on Northern Territory Government Wage and Consumer Price Index parameters. Projected activity increases are not budgeted for and both LHNs are required to meet demand increases from within existing resources as a cost containment strategy.

Variations to monthly payments to the Northern Territory LHNs are made based on cash requirements. Cash requirements are impacted by the Northern Territory Salary payment cycle and other monthly variations, such as contractual obligation payment cycles which the LHNs are engaged in. The LHNs in the Northern Territory have been in a transitional phase and payments during this period have varied based on costs held centrally being transitionally transferred over.