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 2020-25, the Northern Territory funding model has implemented the National Efficient Price (NEP23) and National Weighted Activity Unit (NWAU23) as the currency for Activity Based Funding (ABF) facilities. The National Efficient Cost (NEC23) Block funding model is used for non-admitted mental health services (including child and adolescent mental health services), non-admitted home ventilation and teaching, training and research provided in hospitals.

NHR payments in the Northern Territory are based on the activity outlined in the service plan between the Chief Executive Officer of Northern Territory Department of Health (the ‘System Manager’) and the Northern Territory Regional Health Services (NTRHS). 

The Northern Territory Service Plan outlines the responsibilities, key performance standards and funding support for the Northern Territory Regional Health Services. The annual funding allocation for the Northern Territory Regional Health Services is determined on a needs basis for both the ABF and block service streams, supplemented by a level of growth based on Northern Territory Government Wage, Consumer Price Index and demand growth parameters. Where the Northern Territory Regional Health Services reports higher average costs than the NEP, a supplementation grant is incorporated into the funding model for 2023-24 in recognition of those costs.

Objectives of the service plan are to:

  • specify responsibilities and accountabilities of the delivery of health services
  • establish clear service delivery and performance expectations, including processes for performance management and monitoring
  • ensure that consultation and management processes are appropriate to support the design and delivery of health services that meet local needs
  • promote accountability to Government and the community.

Further information regarding the Basis for National Health Reform payments in both 2023-24 and previous financial years is included at www.publichospitalfunding.gov.au.