PArt 2National Health Reform PAYMENTS

## PArt 2 — National Health Reform PAYMENTS 4. Under the National Health Reform Agreement, national health reform funding arrangements commenced from 1 July 2012. From 2014-15, Commonwealth funding for most public hospital services is on an activity basis where funding varies in response to efficient growth in public hospital services. 5. For 2014-15, Clause A3 of the National Health Reform Agreement provides that the Commonwealth will fund 45 per cent of the efficient growth of activity based services. Efficient growth consists of the national efficient price for any changes in the volume of services provided and the growth in the national efficient price of providing the existing volume of services. 6. Where services or functions are more appropriately funded through block grants and for teaching, training and research, Clause A4 of the National Health Reform Agreement provides that the Commonwealth will fund 45 per cent of growth in the efficient cost of providing the services or performing the functions. 7. In accordance with the functions of the Administrator under paragraph 238(1)(a) of the National Health Reform Act 2011, the Administrator has calculated and advised the amounts required to be paid by the Commonwealth into each State Pool Account of the National Health Funding Pool under the National Health Reform Agreement. These amounts include the reconciliation of actual service delivery in 2014\-15 and a further adjustment to 2013-14 amounts to be paid to each State. 8. Based on the Administrator’s advice and in accordance with subsection 15A(1) of the FFR Act, the amounts specified in Table 1 are to be paid for the 2014\-15 financial year to the States specified in that table.