Details of funding arrangements
The Australian Government will increase its funding commitment to public hospitals in Tasmania.
The Australian Government will increase its growth funding for hospitals to 45% from 1 July 2014 moving to 50% from 1 July 2017.
The Australian and state governments will contribute to a single national pool for hospital funding to be administered by an independent national funding body.
This will see a guaranteed $209 million in additional Commonwealth funding between 2014-15 and 2019-20 and up to an indicative amount of around $350 million over this period. The actual amount will depend on activity levels and the efficient price for the activity.
This will assist Tasmania to be able to better cope with the increasing cost pressures of the public hospital system.
From 1 July 2012 hospitals will begin to be funded based on the activity they undertake. Activity Based Funding (ABF) will enable hospitals to make more informed decisions on the best and most appropriate use of their resources. ABF encourages more efficient patient treatment and recognises the costs associated with different procedures.