To meet the reporting requirements of Section 240 of the National Health Reform Act 2011, the Administrator is to include the basis of each State and Territory’s National Health Reform (NHR) funding and payments.
The State contribution to the funding of public hospital services and functions is calculated on an activity basis or provided as block funding in accordance with the National Health Reform Agreement – Addendum 2020-25. The State determines the amount they pay for public hospital services and functions and the mix of those services and functions and will meet the balance of the cost of delivering public hospital services and functions over and above the Commonwealth contribution.
State funding paid on an activity basis for each service category is based on the price set by that State (which is reported in the Service Plan) and the volume of weighted services as set out in the Service Plan.
To provide consistency in methodology and with the Addendum to the National Health Reform Agreement 2020-25, the 2024-25 Tasmanian Funding Model has implemented the National Efficient Price (NEP24) and National Weighted Activity Unit (NWAU24) as the currency for Activity Based Funding (ABF) facilities. The State also provides an overlay of supplementary grants in recognition of the State reporting higher average costs than the NEP.
The National Efficient Cost (NEC24) Block funding model is used as the currency for small regional and remote public hospitals, standalone hospitals providing specialist mental health services (admitted and non-admitted), child and adolescent mental health services, non-admitted home ventilation and clinical teaching, training and research provided in the major hospitals.
The State determines when payments are made into the Pool and State managed fund. Payments are made from the Pool account to the Tasmania Health Service (THS) and the State managed fund in accordance with the Service Plan agreed between the Minister for Health, and the Secretary of the Tasmanian Department of Health (the ‘System Manager’).
The State also makes payments for activities outside the scope of the National Health Reform Agreement. Out-of-scope activities are defined as those public hospital services with a funding source other than the NHRA.
The Minister for Health, and the Tasmanian Department of Health can agree amendments to the Service Agreement to adjust service volumes or pricing to take account of such matters as changing health needs, variations in actual service delivery and hospital performance.
The Service Plan is available at www.health.tas.gov.au/publications/tasmanian-health-service-service-plans (Opens in a new tab/window)
Further information regarding the basis for NHR payments in both 2024-25 and previous financial years is included at www.publichospitalfunding.gov.au.