Acronyms, abbreviations and glossary

Table 15: Acronyms, abbreviations and glossary

Table 15: Acronyms, abbreviations and glossary
Term
Meaning

(the) Act

The National Health Reform Act 2011.

activity based funding

A system for funding public hospital services based on the actual number of services provided to patients and the efficient cost of delivering those services. Activity based funding uses national classifications, cost weights and nationally efficient prices to determine the amount of funding for each activity or service.

(the) Administrator

The Administrator of the National Health Funding Pool (the Administrator) is an independent statutory office holder, distinct from Commonwealth and state and territory government departments, established under legislation of the Commonwealth and state and territory governments.

The role of the Administrator, with support from the National Health Funding Body, is to administer the payment of public hospital funding according to the National Health Reform Agreement, and to oversee payments into and out of the State pool account for each state and territory, collectively known as the National Health Funding Pool (the Funding Pool).

(the) Agreement

See National Health Reform Agreement.

AHMAC

Australian Health Ministers’ Advisory Council.

block funding

A system of funding public hospital functions and services as a fixed amount based on population and previous funding.

Under National Health Reform, block funding will be provided to states and territories to support teaching and research undertaken in public hospitals and for some public hospital services where it is more appropriate, particularly smaller rural and regional hospitals.

CEO

Chief Executive Officer.

CFO

Chief Finance Officer.

Council of Australian Governments (COAG)

The peak intergovernmental forum in Australia. The members of COAG are the Prime Minister, state and territory Premiers and Chief Ministers and the President of the Australian Local Government Association.

COAG Health Council

Previously known as Standing Council on Health (SCoH).

DoHA

The (former) Department of Health and Ageing.

FMA Act

The Financial Management and Accountability Act 1997. This Act provided a framework for the proper management of public money and public property.

(the) Funding Pool

See ‘National Health Funding Pool’.

Independent Hospital Pricing Authority (IHPA)

An independent statutory body established under Commonwealth legislation to calculate and deliver an annual National Efficient Price (NEP) used in the calculation of national activity based funding for Australian public hospitals.

JAC

Administrator’s Jurisdictional Advisory Committee.

Local hospital networks (LHNs)

Recipients of the payments from the National Health Funding Pool, Commonwealth block funding and state managed funds.

Medicare Benefits Schedule (MBS)

A listing of the Medicare services subsidised by the Australian Government.

National Health Funding Body (NHFB)

An independent statutory body established under Commonwealth legislation to assist the Administrator in carrying out his or her functions under Commonwealth, state and territory legislation.

National Health Funding Pool (the Funding Pool)

A collective name for the state pool accounts of all states and territories, also known as the ‘the Funding Pool’. The Pool was established under Commonwealth and state and territory legislation for the purpose of receiving all Commonwealth and activity based state and territory public hospital funding, and for making payments under the Agreement.

National Health Performance Authority (NHPA)

An independent statutory authority established under Commonwealth legislation to report on the performance of hospitals and primary health care organisations across Australia.

National health reform

National health reform includes reforms to the way in which public hospitals are funded nationally in Australia, as set out in the National Health Reform Agreement entered into by all states, territories and the Commonwealth in August 2011.

National Health Reform Agreement (the Agreement)

The National Health Reform Agreement outlines the funding, governance, and performance arrangements for the delivery of public hospital services in Australia. the Agreement was entered into by all states, territories and the Commonwealth in August 2011.

Payments System (the)

the Administrator’s Payments System processes the national health reform Commonwealth, state/territory deposits and payments into and out of the Pool, as required under the Act.

Pharmaceutical Benefits Scheme (PBS)

Details of the medicines subsidised by the Australian Government.

PGPA Act

Public Governance, Performance and Accountability Act 2013. This act replaced the Financial Management and Accountability Act 1997 and the Commonwealth Authorities and Companies Act 1997 from 1 July 2014.

RAG

Reconciliation Advisory Group.

SCoH

Standing Council on Health. Known as the COAG Health Council from December 2013.

state managed fund

A separate bank account or fund established by a state or territory for the purposes of health funding under the Agreement which must be undertaken in the state or territory through a state managed fund.

state pool account

A Reserve Bank account established by a state or territory for the purpose of receiving all Commonwealth and activity based state and territory public hospital funding, and for making payments under the Agreement. The state pool accounts of all states and territories are collectively known as the National Health Funding Pool or the Pool.