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 202223 Tasmanian Funding Model has implemented the National Efficient Price (NEP22) and National Weighted Activity Unit (NWAU22) as the currency for Activity Based Funding (ABF) facilities.

In addition, where it is determined that ABF facilities within the Tasmanian Health Service (THS) report higher average costs than the NEP, a supplementation grant has also been incorporated into the Funding Model for 202223 In recognition of those costs.

The National Efficient Cost (NEC22) Block funding model is used as the currency for small regional and remote public hospitals, standalone hospitals providing specialist mental health services (admitted and non-admitted), child and adolescent mental health services, non-admitted home ventilation and clinical teaching, training and research provided in the major hospitals.

NHR payments in Tasmania are based upon the THS Service Plan between the Minister for Health and the Secretary of the Tasmanian Department of Health.

The THS Service Plan outlines:

  • the schedule and volume of ABF services across streams to be delivered by or on behalf of the THS and the ABF funding to be provided in relation to the provision of those services
  • the NEC Block funding for services provided through:
    • small rural hospitals, standalone hospitals providing specialist mental health services and eligible community mental health services
    • major hospitals for: 
      • Non-admitted home ventilation
      • Clinical teaching, training, and research
  • operational and Block grants to the THS covering services provided and activities undertaken that are not within scope for ABF, for example, alcohol and drug services, dental services, child health and parenting services, primary care, home, and community care
  • a schedule of supplementation grants at the hospital and ABF stream level
  • standards of patient care and service delivery
  • performance standards, performance targets and performance measures for the THS
  • requirements for the THS to report on its performance, as required or otherwise
  • a performance management process that is to be in continuous operation in respect of the THS.

The ABF funded facilities’ service profiles are developed in negotiation with the LHN as follows:

  • acute admitted and sub-acute and non-acute service activity volumes are modelled based on historical activity data and agreed growth rates and adjusted for known service capacity and profile changes
  • emergency department and outpatient service volumes are modelled based on agreed growth rates and other known factors
  • Clinical teaching, training, and research and, home ventilation services are modelled based on historical expenditure profiles and adjusted for known changes
  • small regional and remote hospitals are modelled based on the small hospital NEC fixed cost component and the variable cost component result
  • standalone hospitals providing specialist mental health services (admitted and non-admitted) child and adolescent mental health services, teaching, training, and research and non-admitted home ventilation are modelled based on historical activity volumes and expenditure profiles and adjusted for known changes in service delivery and capacity
  • non-NHRA and non-hospital services are Block funded and modelled based on historical expenditure profiles and other known growth factors
  • the Supplementation Grant Is based on the most recently available National Hospital Cost Data Collections ABF service category cost ratio data.

Further information regarding the basis for NHR payments in both 202223 and previous financial years is included at www.publichospitalfunding.gov.au