Latest Developments in Activity
Based FundingQueensland Health Perspective
Terry Mehan, Deputy Director- General
Performance and Accountability, Queensland Health
Presentation will cover:
Update on latest developments in
Queensland Health in respect of:
Project Governance
ABF Framework - 3 principal areas of
work ie:
 Purchasing
 Funding
ABF Project Governance
DDG Performance and Accountability is the Project Sponsor
Sponsor supported by ABF Project Board established in
March 2011 to:
Provide strategic advice and recommendations to EMT on the development,
implementation and management of ABF in QH
Oversee completion of the development and implementation of an ABF
model for QH.
Board functions: business assurance, monitoring progress,
risk management, stakeholder engagement, organisational
change, transition back to business as usual
Board membership: DDGs (FPL, PandA, CHI, PS&R),
DCEOs (GC & Cairns), CFO representative, Clinical Senate
representatives (Executive and Member)
ABF Framework
- three pillars
Smarter Choices, Better Care
Policy directions that aim to meet
patient and community needs, taking
into account population-based health
service planning
Purchasing of health care services to deliver the greatest benefits to patients
and populations within available resources
Funding District Health Services on this basis and, in particular, funding
Queensland Health hospitals based on the cost of health care services (referred to
as ‘activities’) delivered
ABF Policy
ABF Benefits
Safety & quality
Performance management
Fairer access
Transparency & accountability
Allocative, technical and dynamic
Development of ABF Policy Framework progressing through ABF
PS&R has proposed a number of areas for initial focus eg.
activity targets, phasing out of transition payments, adjusting cost
weights for cost effectiveness in improving health outcomes,
incentives for patient safety and quality, funding of non-public
patients, funding small hospitals
Purchasing Framework
Contracting & procurement as mechanisms to
deliver improved health care services for
Purchasing cycle to be based on effective health
needs assessment
Specifying outcomes not inputs
Balancing incentives and interventions
Purchasing framework now incorporated into
Draft QH Compliance Framework
Elements in 2011/12: Relative utilisation; Adverse
events; Clinical capability; Ambulatory service
model; Potentially avoidable and out of scope
admissions; Modality; Own source revenue;
Indexed activity
Funding Tool
Districts have received income statements calculated
on activity for model and purchasing elements .
No actual adjustment for relative utilisation and
clinical capability
Activity targets being loaded into DSS; reporting will
reflect activity targets as well as revenue
Short term Review Panels being established (ABF
Model, Purchasing Framework, Peer Group (costing
methodologies) & Site Specific Grants)
Elements recently allocated to Business Owners for
stakeholder engagement, formulation & approval
process to Board and then EMT
Technical and Operational Statewide Network being
Where to from here?
Need to ‘road-test’, evaluate and
develop policy, purchasing and
funding model
Program planning for ABF
implementation emphasises a
clinician led approach
Robust arrangements for
communication & engagement
being developed
Useful Links & Addresses
ABF Website
Draft Operating Manual (on ABF website)
ABF online learning modules can be access on the finance
network site or through link on ABF intranet site
Ernst and Young ABF Model Report and Coding, Costing and
Counting audit reports are available at:
Any enquiries can be directed to:
[email protected]