Health Flexible Funds – pausing indexation and achieving efficiencies

Flexible Funds will be combined into a new funding structure to start from 1 July 2016. The new structure will streamline 11 outcomes to six, and have new corresponding programs. Through this measure, $182.2 million will be saved over three years through a pause on indexation and a three per cent reduction to some funds. All existing contracts will be honoured.

Page last updated: 03 May 2016

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Why is this important?

  • The Government remains committed to achieving responsible savings for the taxpayer, while balancing the need for ongoing quality health services for all Australians.
  • This measure achieves responsible savings, and will enable more efficient targeting of health funding, with minimal impact on frontline delivery. The saving has been applied incrementally between years.
  • The new outcome and program structure for health will provide greater transparency and a simpler and more streamlined way for providers to be funded, and for the Government to track progress and effectiveness of services.

Who will benefit?

  • Providers will be funded to deliver quality health services, with greater transparency, and be more closely aligned with program objectives.
  • Australians will continue to have quality frontline health services.

How much will this cost?

This measure will save $182.2 million from 2017–18 to 2019–20, commencing 1 July 2017.