Adopting surgical innovation within activity-based funding for public hospitals

Michael D Coory, Bridie S Thompson and Susan J Jordan
Med J Aust 2013; 198 (2): . || doi: 10.5694/mja12.11206
Published online: 4 February 2013

To the Editor: Activity-based funding (ABF) is being gradually introduced across Australia’s public hospitals, which means that payments will be made according to cost-weights in about 670 diagnosis-related groups (DRGs).1 ABF is not new. It has been used in the United States since 1983 and in Victoria since 1993, and is the dominant funding model in several European countries. But not all public hospital activity can be funded through ABF: research and teaching are typically block funded and smaller hospitals often require block funding.2

  • Michael D Coory1
  • Bridie S Thompson2
  • Susan J Jordan2

  • 1 Health Services, Murdoch Childrens Research Institute, Melbourne, VIC.
  • 2 Population Health, Queensland Institute of Medical Research, Brisbane, QLD.


Competing interests:

No relevant disclosures.


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