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The agency

The National Health Fudning Body (NHFB) and the Administrator of the National Health Funding Pool were established through the National Health Reform Agreement (NHR Agreement) of August 2011 (see page 13).

The NHFB operates as a Commonwealth non–corporate entity under the Public Governance, Performance and Accountability Act 2013 (PGPA Act) and is funded as a micro agency under the Commonwealth Department of Health Portfolio.

The NHFB is an independent agency with 21 staff that support the Administrator to oversee the administration of Commonwealth, State and Territory public hospital funding and payments under the NHR Agreement.

The Administrator is an independent statutory office holder. All Commonwealth, State and Territory Governments have to agree to their appointment to the position.

The functions of the Administrator are set out in the National Health Reform Act 2011
(NHR Act) and common provisions in relevant State and Territory legislation.

What we do

The NHFBs primary functions are to assist the Administrator in:

  • Calculating and advising the Commonwealth Treasurer of the Commonwealth’s contribution to public hospital funding in each State and Territory
  • Reconciling estimated and actual public hospital services, and adjusting Commonwealth payments
  • Undertaking funding integrity analysis to identify public hospital services that potentially received funding through other Commonwealth programs
  • Monitoring payments of Commonwealth, State and Territory public hospital funding into the National Health Funding Pool (the Pool)
  • Making payments from the Pool to each Local Hospital Network (LHN)
  • Reporting publicly on funding, payments and services
  • Developing and providing three-year data plans to the Commonwealth, States and Territories

To assist the Administrator and achieve our vision of improving the transparency of public hospital funding in Australia, we work collaboratively across four key functions outlined in Figure 1.

Figure 1 The National Health Funding Body's four key functions The Four key functions of the NHFB are calculate, pay, report and organisation