What is activity-based funding? ABF Information Series No. 1

Activity-Based Funding (ABF) is a central feature of the Rudd hospital reform plan (‘A National Health and Hospitals Network for Australia’s Future’). ABF is not a new idea, either to the health sector or to other industries. Indeed, the Council of Australian Governments (COAG) agreed in November 2008 to introduce a nationally consistent ABF approach as part of its National Partnership Agreement on Hospital and Health Workforce Reform. The Rudd hospital reform plan proposes to accelerate the ABF work program that has already been agreed with the States and Territories.