Activity based funding
Identifying and definitional attributes
|Metadata item type:||Glossary Item|
A method of funding health services based on amount and type of activity.
Activity based funding in the context of health is a method of funding hospitals and health services whereby health services are funded for the provision of patient care based on the type and mix of patients they treat. A set amount is paid to the health service based on the relative cost of the group to which the patient is classified.
Collection and usage attributes
|Guide for use:|
Activity based funding has three essential elements:
Classification: Allocation of patients treated into groups which allow weightings to be applied. The groups should have resource use homogeneity (patients within a group should cost a similar amount to treat) and be clinically coherent (patients within a group should be clinically similar).
Activity data: Counting the patients treated.
Cost data: Determining the cost of treatment.
Source and reference attributes
Independent Hospital Pricing Authority
Department of Health 2013. Department of Health, Canberra. Viewed 2 September 2016, http://www.health.gov.au/casemix
|Related metadata references:|
Supersedes Activity based funding
|Metadata items which use this glossary item:|
Activity based funding: Emergency service care NBEDS 2017-18
Activity based funding: Mental health care NBEDS 2017-18
Admitted subacute and non-acute hospital care NBEDS 2017-18
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