Who receives NHR payments?

National Health Reform payments occur when NHR funding in a state pool account or state managed fund is paid out of the state pool account by the Administrator, or is paid out of the state managed fund by the state or territory.

Payments can be made to the following recipients:

  • Local hospital networks (LHNs)

    Local hospital networks (LHNs)

    A local hospital network is an organisation that provides public hospital services in accordance with the National Health Reform Agreement. A local hospital network can contain one or more hospitals, and is usually defined as a business group, geographical area or community. Every Australian public hospital is administered by a local hospital network.

    Local hospital networks receive activity based and block funding under the Agreement.

    Some states and territories use their own terminology to describe local hospital networks, such as 'local health districts'.

  • Third parties on behalf of local hospital networks

    Third parties on behalf of local hospital networks

    Subject to agreement between a state or territory and its local hospital networks, payments can be made directly from the state pool to third parties who provide shared services on behalf of a local hospital network, for example, payment to a linen services provider. It is anticipated that states and territories will document any agreed arrangements for third party payments in their service agreements with local hospital networks.

  • State health departments

    State health departments

    Each state or territory nominates a specific state health department fund to receive National Health Reform payments from Commonwealth public health funding, the repayment of any over deposits, and any interest earned on its state pool account.

    States and territories can nominate that interest be paid directly to their Treasury Departments by the Reserve Bank. If this is the case, no interest will be deposited into the pool account for that state or territory.

  • Other providers

    Other providers

    Block funding for some services flows to other provider organisations, depending upon the specific funding arrangements established in each state for the provision of those services. Examples of this funding include:

    • Funding for health services delivered in a community setting
    • Funding for teaching, training and research provided to universities and training providers