It’s no secret: Medicare Locals can save billions
This is better known as ‘activity-based funding’ or ABF.
Under the new arrangements the Commonwealth government will contribute 45% of the “nationally efficient price” in the growth of public hospital services, increasing to 50% in 2017.
What is missing from the report and discussion is the opportunity ABF gives to look for more efficient and effective care outside the hospital system for patients who could avoid hospital admissions.
The idea of ABF is right, but it’s not enough if confined to the hospital sector when some services