JANUARY
1857_mossialos_intl_profiles_2015_v7
1857_mossialos_intl_profiles_2015_v7
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AUSTRALIA<br />
Hospital funding is set through policy decisions by the federal government, with states required to manage<br />
funding within their budgets.<br />
Through the 2015–2016 budget, the federal government also consolidated the back-office functions of a<br />
number of its health agencies to generate AUD106 million (USD69 million) in savings. Beyond these measures,<br />
the major control is through the capacity constraints of the health system, such as workforce supply.<br />
What major innovations and reforms have been introduced?<br />
In 2015, the federal government announced a number of reforms to primary care, including implementation of<br />
the aforementioned PHNs and the MBS Review. In addition, the government has established the Primary Health<br />
Care Advisory Group to consider innovations to funding and service delivery for people with complex and<br />
chronic illness, including mental health. Together, these three reforms seek to ensure that primary care is being<br />
delivered efficiently and effectively and that Medicare is put on a sustainable funding trajectory. The group’s<br />
advice, which was submitted to the government at the end of 2015, will consider how to best utilize the PHNs.<br />
The government is also reforming care for the aging. In addition to the implementation of the Commonwealth<br />
Home Support program outlined above, a new funding model is pursued whereby allocations will be made<br />
directly to consumers based on their care needs instead of directly to service providers, affording them greater<br />
choice in providers and stimulating provider competition. This reform will take effect in February 2017.<br />
18<br />
The Commonwealth Fund