Calculating the Commonwealth contribution

The Commonwealth Contribution Model (CCM) calculations form the basis of the Administrator’s payment advice to the Commonwealth Treasurer. This advice is also provided to State and Territory health ministers and State and Territory health departments. 

There are two broad types of funding: Activity Based Funding (ABF) and Block Funding.

Two types of public hospital funding: Activity based funding and Block funding

Under the NHR Agreement, the scope of public hospital services that are funded on an ABF or Block basis and are eligible for a Commonwealth funding contribution currently includes: 

  • all emergency department services provided by a recognised emergency department 
  • all admitted and non-admitted services 
  • other outpatient, mental health, sub-acute services and other services that could reasonably be considered a public hospital service. 

Commonwealth funding for ABF, Block and Public Health is calculated using the CCM which is accurate, correct and independently reviewed each year. 

Public hospitals also receive funding from other sources, including the Commonwealth, States and Territories, and third parties for the provision of other specific functions and services outside the scope of the NHR Agreement (e.g. pharmaceuticals, primary care, home and community care, dental services, residential aged care and disability services).