Northern Territory basis for National Health Reform payments 2020-21 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.

To provide consistency in methodology and with the Addendum to the National Health Reform Agreement 2020–21 to 2024–25, the NT Funding Model has implemented the National Efficient Price (NEP20) and National Weighted Activity Unit (NWAU20) as the currency for Activity Based Funding (ABF) facilities. The National Efficient Cost (NEC20) Block funded model is used for the stand-alone hospitals, Non-admitted mental health services (including Child and adolescent mental health services), Non-admitted Home Ventilation and Clinical Teaching, Training, and Research provided in hospitals.

NHR payments in NT are based upon the activity outlined in the Service Delivery Agreement between the Chief Executive Officer of the Department of Health and the Chief Operating Officer of the respective Health Service. The Service Delivery Agreement outlines:

  • the health services and other services to be provided by the Health Service; and
  • the funding to be provided to the Health Service for the provision of the services and the way in which the funding is to be provided; and
  • the performance standards,targets and measures for the provision of the services; and
  • the performance data and other matters to be reported to the System Manager by the Service and the frequency of that reporting.

The annual funding allocation for the Top End and Central Australia Health Services of Northern Territory is determined on a historical basis for both the Activity Based Funding (ABF) and block service streams, supplemented  by a level of growth based on Northern Territory Government Wage, Consumer Price Index and demand growth parameters. Cross-border settlements received from other jurisdictions in respect to prior year’s activity are on passed to the LHNs. Further information regarding the Basis for National Health Reform payments in both 2020-21 and previous financial years is included at www.publichospitalfunding.gov.au