Making activity-based funding work for mental healthSebastian P. Rosenberg A C and Ian B. Hickie B
A Brain and Mind Research Institute, University of Sydney, PO Box 6036, Kingston, ACT 2604, Australia.
B Brain and Mind Research Institute, University of Sydney, 100 Mallett Street, Camperdown, NSW 2050, Australia. Email: firstname.lastname@example.org
C Corresponding author. Email: email@example.com
Australian Health Review 37(3) 277-280 https://doi.org/10.1071/AH13002
Submitted: 7 August 2012 Accepted: 25 March 2013 Published: 4 June 2013
The implementation of activity-based funding (ABF) in mental health from 1 July 2013 has significant risks and benefits. It is critical that the process of implementation is consistent with Australia’s cherished goal of establishing a genuine and effective model of community-based mental health care. The infrastructure to support the application of ABF to mental health is currently weak and requires considerable development. States and territories are struggling to meet existing demand for largely hospital-based acute mental health care. There is a risk that valuable ABF-driven Commonwealth growth funds may be used to prop up these systems rather than drive the emergence of new models of community-based care. Some of these new models exist now and this article provides a short description. The aim is to help the Independent Hospital Pricing Authority better understand the landscape of mental health into which it now seeks to deploy ABF.
References Rosen A, McGorry P, Hill H, Rosenberg S. The independent health pricing authority and mental health services: it is not a case of ‘one size fits all’. Med J Aust 2012; 196 675–7.
| The independent health pricing authority and mental health services: it is not a case of ‘one size fits all’.CrossRef | 22708754PubMed |
 Council of Australian Governments. Health reform agreement. 2011. Available at http://www.federalfinancialrelations.gov.au/content/npa/health_reform/national-agreement.pdf [verified January 2013]
 Australian Institute of Health and Welfare. Health expenditure Australia 2009–10, Health and welfare expenditure series no. 46. Cat. no. HWE 55. Canberra: Australian Institute of Health and Welfare; 2011.
 Parliament of Australia. From crisis to community. Report of the Senate Committee of Inquiry into Mental Health. Canberra: Parliament of Australia; 2006.
 Australian Bureau of Statistics. National survey of mental health and wellbeing 2007. Canberra: Australian Bureau of Statistics; 2008.
 Collins P, Patel V, Joestl S, et al Grand challenges in global mental health. Nature 2011; 475 27–30.
| Grand challenges in global mental health.CrossRef | 1:CAS:528:DC%2BC3MXosFehurs%3D&md5=6ff62d52adc7c23f6db880eee772ca8cCAS | 21734685PubMed |
 Crosbie D. Mental health policy - stumbling in the dark? Med J Aust 2009; 190 S43–5.
| 19220174PubMed |
 Mental Health Council of Australia. Not for service. Canberra: Mental Health Council of Australia; 2005.
 Thornicroft G, Tansella M. What are the arguments for community-based mental health care? Copenhagen: World Health Organisation Europe; 2003.
 Rosenberg S, Mendoza J. Community-managed mental health services - the case for investment. New Paradigm 2010; 2010/2011(Summer): 1–10.
 Hawthorne W, Green E, Folsom D, Lohr J. A randomised controlled study comparing the treatment environment in alternative and hospital-based acute psychiatric care. Psychiatr Serv 2009; 60 1239–44.
| A randomised controlled study comparing the treatment environment in alternative and hospital-based acute psychiatric care.CrossRef | 19723739PubMed |
 Rosen A, Gurr R, Fanning P. The future of community-centred health services in Australia: lessons from the mental health sector. Aust Health Rev 2010; 34 106–15.
| The future of community-centred health services in Australia: lessons from the mental health sector.CrossRef | 20334766PubMed |
 Commonwealth Government. National mental health report 2010. Canberra: Commonwealth Government; 2011.
 Australian Institute of Health and Welfare (AIHW). Mental health services in brief 2011. Canberra: AIHW; 2011.
 Department of Health. Casemix funding history. What is casemix funding? Available at http://health.vic.gov.au/abf/history.htm [verified February 2012]
 Independent Hospital Pricing Authority. Pricing framework. Available at http://www.ihpa.gov.au/internet/ihpa/publishing.nsf/Content/4B0A4638F413AC30CA257AAF00044FF3/$File/Att_4.Consultation%20paper%20for%20Pricing%20Framework%202013-14.pdf [verified January 2013]
 Dench McLean Carlson. Final report for evaluation of the Prevention and Recovery Care (PARC) Services Project. 2008. Available at http://www.health.vic.gov.au/mentalhealth/publications/parc-evaluation.pdf [verified May 2012]
 University of Melbourne. Asia-Pacific Community Mental Health Development Project summary report. Melbourne: University of Melbourne; 2008.
 National Alliance to End Homelessness. What is Housing First? Washington DC: National Alliance to End Homelessness; 2008. Available at: http://www.endhomelessness.org/content/article/detail/1425 [Verified 20 April 2013]
 Trauer T Farhall J Newton R Cheung P 2001
 Hickie I, Hermens D, Scott E. Targeted primary care-based mental health services for young Australians. Med J Aust 2012; 196 627
| Targeted primary care-based mental health services for young Australians.CrossRef | 22676873PubMed |
 Thornicroft G, Tansella M. Components of a modern mental health service: a pragmatic balance of community and hospital care. Overview of systematic evidence. Br J Psychiatry 2004; 185 283–90.
| Components of a modern mental health service: a pragmatic balance of community and hospital care. Overview of systematic evidence.CrossRef | 15458987PubMed |
 Commonwealth Department of Health and Aged Care. Promotion, prevention and early intervention for mental health - a monograph. Canberra: Mental Health and Special Programs Branch, Commonwealth Department of Health and Aged Care; 2000.