Funding policy

Funding policy for clinical activity undertaken by Victorian health services is reviewed in an ongoing manner. Changes to policy are described below using the program and setting to identify the area influenced by the policy.

Activity based costing

Activity based costing is a key building block of Activity Based Funding. Activity based costing informs funding required to deliver patient care.

Acute Admitted Care

Acute admitted care is care provided to patients who have undergone a formal admission process, where the clinical intent or treatment goal is the provision of acute care.

Subacute Care (Admitted)

Admitted sub-acute care encompasses Rehabilitation, Geriatric Evaluation and Management (GEM), and Palliative Care services.

Emergency Care funding stream

Funding approaches aim to align the incentives for payment with the objectives of the clinical area.

Implementation of the National Weighted Activity Unit

Victoria began the transition to the national funding model (National Weighted Activity Unit) as the mechanism by which hospital services will be funded in Victoria from 1 July 2021.

Mental health funding stream

The mental health funding model in Victoria will not transition to the National Weighted Activity Unit in 2021-22.

National bodies and concepts related to funding

Overview of national funding bodies and concepts which inform health service funding in Victoria.

Non-admitted care

Non-admitted care encompasses services provided to patients who do not undergo a formal admission process and do not occupy a hospital bed.

Policy and Funding Guidelines for health services

The Policy and Funding Guidelines represent the system-wide terms and conditions for government-funded healthcare organisations, such as health services and hospitals.

Small Rural Health Services funding stream

A block funding model applies to Small Rural Health Services (SRHS) that meet the Independent Health and Aged Care Pricing Authority (IHACPA) criteria for block funding.

Teaching, training and research funding stream

Funding for Victoria’s teaching, training and research services is block funded.

MBS billing policy framework - Victorian public hospitals

Public hospitals billing under the MBS on behalf of health practitioners exercising a right of private practice.

Reviewed 11 April 2023

Health.vic

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Performance Support

Performance.Support@health.vic.gov.au