Although most health care in Australia is associated with good clinical outcomes, preventable adverse events and complications continue to occur across the Australian healthcare system. To assist in identifying instances of harm, the Commission has developed the following indicators for local monitoring of safety and quality: hospital-acquired complications, avoidable hospital readmissions, sentinel events, and avoidable and preventable hospitalisations.

In partnership with the Independent Hospital Pricing Authority (IHPA), and the state and territory health departments, the Commission has developed specifications for the hospital-acquired complications, sentinel events and avoidable hospital readmission indicators that are suitable for the National Health Reform Agreement. The 2020–2025 National Health Reform Agreement includes these indicators, and promotes development of options to reduce avoidable and preventable hospitalisations in collaboration with IHPA and the National Health Funding Pool Administrator.