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How to pay for health?

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Government funding reform options (as set out in Department of Prime Minister and Cabinet’s Reform of the Federation 2015 Discussion Paper)

Option 1

States and Territories handed full responsibility for public hospitals – the Commonwealth would withdraw all funding.

Option 2

Hospital benefit scheme

The Commonwealth would establish an MBS-style benefits scheme to fund a proportion of the cost of each hospital procedure, with the States asked to cover any gap between rebate and service cost.

Option 3

Individual care packages

The Commonwealth and States jointly fund individualised care packages for patients with, or at risk of developing, chronic or complex conditions.

Option 4

Regional Purchasing Agencies

The two tiers of government would jointly establish agencies to purchase health services for patients in their catchment areas.

Option 5

National Health Purchasing Agency

Commonwealth-funded agency to commission full suite of services, from primary through to acute, to meet community need.

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