Courses and programs

Activity Based Funding


Welcome to the eLearning module Activity Based Funding.

Clinical staff and clinical support staff are advised to complete the two new learning modules providing an introduction to the importance of quality clinical documentation to their practice, to patient care and to the functioning of the NSW Health system. The two modules are:

Clinical Documentation – Getting it right.

Documentation and ABF for clinicians.

National Health Reform: ABF in Context The National Health Reform Agreement which was finalised by the Council of Australian Governments on 2nd August 2011 sets out the shared intention of the Commonwealth, States and Territories to work in partnership to improve health outcomes for all Australians.

This is a key milestone in the National Health Reform process that will provide a significant benefit in funding and delivery of health and aged care services in NSW and will be complementary to NSW Government policies and initiatives to establish a more devolved model of local governance of health services, coupled with transparent funding and accountability for performance.

Most importantly, the agreed reform provides for the Commonwealth to share the funding risk of the demand pressures on public hospitals and provides guaranteed growth funds which can help the States meet that demand from 2014/15. Under the new agreement NSW will gain an additional $3 billion in guaranteed funding over the 6 years from July 2014 to June 2020. In addition, the National Health Reform Agenda introduces a new approach to health funding – Activity Based Funding (ABF). This module is designed to assist staff understand the new approach and its rationale.

These modules have been designed to help you to understand Activity Based Funding (ABF). There are three key components, which explain your involvement with ABF as it becomes part of the change to funding in NSW Health Services.

Course Structure

Module 1: What is ABF and why do we have it?

Module 2: How are health services funded under ABF and what is your role?

Module 3: What are the practical implications of Health Reform for you in your daily work?

Why do we have Funding Reform?

The reforms provide an opportunity for LHD/SHNs to be responsible for managing all aspects of hospital and health service delivery for their LHD/SHN under a Service Agreement (SA) with the Ministry of Health (MOH).


The objectives of funding reform are:

  • To improve patient access
  • To ensure sustainability of funding
  • To improve the transparency of public hospital funding
  • To implement a nationally consistent ABF methodology


This course is applicable for all NSW Health Staff and may qualify for up to 0.3 hrs of Continuous Professional Development