Delivering a Healthy WA
Activity Based Funding and Management

What is activity based funding and management in WA?

WA Health is responsible for ensuring the best use of tax payer funds in the delivery of safe, high quality care to the people of Western Australia.

Activity based funding and management is a way of funding and managing public health care in WA. It means that health services are paid for every patient they see or treat, taking into account the complexity of the patient’s healthcare needs. It provides a clear and open link between the money allocated by Government and the health services delivered to patients and the community.

What is meant by 'activity'?

Activity based funding and management currently applies to the majority of acute health care in hospitals. This includes admitted patient care, outpatients, emergency department services, and subacute care.  Eventually activity based funding and management will extend to almost everything we do.

What is the national ABF program?

The national ABF program is part of the National Health Reform Agreement which all states and territories signed in August 2011.

The national ABF program began to be rolled out in July 2012 for some services and from July 2014, Commonwealth funding for public hospital services will be based on reported activity levels.


  • Activity based funding and management is designed to improve care, manage resources and deliver quality
  • The patient, family and carers are the central focus of the care system
  • Funding is transparently linked to health services and outcomes
  • Evidence is available to ensure that performance can be managed
  • Clinical leadership and partnership is required at all program levels
  • Risks are identified, controlled and managed in a consistent manner


Image strip featuring health services