The Commonwealth's proposal for the 1998-2003 Health Care Agreements

Abstract

8The new Health Care Agreements for 1998?2003 are currently being negotiatedbetween the Commonwealth and State and Territory governments. TheCommonwealth?s offer aims to address the major problems associated with the currentAgreements, including cost-shifting incentives and funding rigidities.It has proposed a funding model whereby admitted and non-admitted patient servicesare funded on an output basis. Other aspects of the proposal include funding forquality enhancement and structural change, and specific funds for mental health andpalliative care. The proposal also aims to achieve a more equal sharing of risks andbenefits between the Commonwealth and the States and Territories.The views expressed are those of the authors and should not be taken as an officialview of the Department or the Minister. While the authors have had primaryresponsibility for the development of the Commonwealth model and the preparationof this paper, they wish to thank other members of the Health Care Agreements Branch(Heather Cocks, Ian Macdonald, Elaine Pringle and Shane Wright) for theirassistance.