National Health Funding Body – funding requirements

The Government will increase funding by $4.1 million over three years to the National Health Funding Body (NHFB) to support its existing role and new functions arising from the COAG agreement on public hospital funding.

Page last updated: 09 May 2017

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The NHFB, which is an independent statutory authority, supports the Administrator of the National Health Funding Pool in paying and distributing Commonwealth and state and territory funding for public hospitals – responsible for around $40 billion a year.

Why is this important?

The resource requirements of the NHFB have not been reviewed since its establishment in June 2012.

The new public hospital funding arrangements under the COAG National Health Reform Agreement require the Administrator to develop additional processes and enhance current functions. This means additional responsibilities for the NHFB, which require extra funding.

Who will benefit?

The nation’s public hospital system, and therefore patients, benefit from the NHFB’s support role in paying and distributing Commonwealth and state and territory funding for public hospitals.

All parties to the COAG agreement, under which the Commonwealth and states and territories share costs of efficient growth funding for public hospitals, benefit from the services delivered by the NHFB.

How much will this cost?

This measure will cost $4.1 million from 2017–18 to 2019–20.

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