Health and Aged Care Funding Models and Financial Statements Analysis

HEALTH AND AGED CARE
FUNDING MODELS AND
FINANCIAL STATEMENTS
ANALYSIS

TABLE OF CONTENTS
Part 1 – Health Care Funding Models..............................................................................................1
Activity Based Funding for Australian Health Sector.................................................................1
Role of independent Hospital Pricing authority in ABF..............................................................1
National Efficiency Pricing and its application over all states in Australia................................1
Problems in using average length of stay for funding purposes..................................................1
Comparison of Activity Based and Population Based funding model........................................1
Two Financial management issues related to consumer directed care........................................2
Part 2 – Financial Statements and Analysis ....................................................................................2
1 Comparison of financial summary to financial statements of Barwon Health Group Annual
Report 2017-18............................................................................................................................2
2 Comparison of Comprehensive results of parent entity for te year 2017 and 2018.................2
REFERENCES................................................................................................................................6

Part 1 – Health Care Funding Models
Activity Based Funding for Australian Health Sector
This is central feature of Rudd hospital reforms plan ( A National Health and Hospital
Networks for Future of Australia ). ABF is agreed by Council of Australian Governments in
2008, November for introducing national consistent approach of ABF. In this approach funds are
provided on the basis of activity they are undertaking. Hospitals get payment for number and
patients mix treated by them.
Role of independent Hospital Pricing authority in ABF
IHPA in ABF is playing an pivotal role through their key functions. IHPA recognises the need of
empirical evidence for assessing whether ABF is gaining success in achieving its key objectives.
IHPA consults widely with state, federal and government of territory and other stakeholder for
implementing the consistent approach for ABF.
National Efficiency Pricing and its application over all states in Australia.
National Efficiency pricing model helps companies to provide episode of care below or at
national benchmark. It should be applied over all the states of Australia equally on assumption
that hospitals would be responsive to new technologies that from societal point are cost effective.
Will reduce negative consequences falling over patients or over service systems.
Problems in using average length of stay for funding purposes.
Hospitals are not able to cope pressure with with rise in admissions in hospitals. There are
different and give inconsistent data. Various errors are occurred due to the variability in data.
Also the signifiant and important data is hidden. Therefore the authorities do no get the accurate
results for funding the hospitals.
Comparison of Activity Based and Population Based funding model.
ABF is method to fund healthcare where funds are allocated to the providers on basis of volume
and type of services provided by them and also the complexity of patient's population they are
serving. PBF is technical tool for helping in equally distributing bulk district health board to fund
according to needs of every DHB's population. As result of review DHB's will not be receiving
less funds. As FH minister ABF would be adopted as funding is given to hospitals based on the
services and complexity of cases and not just on population review.
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