Client: North Coast PHN

Project: Integrated Team Care Funding Formula Review

Background: In the North Coast PHN region, Integrated Team Care (ITC) funding allocation, comprising of more than $2 million in care coordination and supplementary services support, has significantly evolved over the last five years. To ensure that ITC services are being delivered to communities with the highest level of need, ITC providers and North Coast PHN agreed to reviewing the ITC funding formula. It was decided that moving toward a population needs-based model would be the most fair and effective approach.

Population-weighted funding models have been used for many years under the Australian Government health and hospitals reform agenda in activity-based funding as well as in New Zealand and the United Kingdom. The principle behind applying a weighting is to ensure that funding reflects current and projected needs. Weightings can be applied across a range of indicators such as age, gender, socio-economic indexes for areas (SEIFA) and remoteness. Weightings can also be applied to forecast anticipated demand in future years.

Project purpose:  Beacon Strategies will work collaboratively with NCPHN, North Coast Aboriginal Medical Services and mainstream general practices throughout the project to develop an evidence-based modelling tool to inform decisions on allocation of ITC resources. The Excel-based modelling tool will be informed by best-practice on resource allocation modelling for primary care. Local level data (preferably disaggregated for the Aboriginal population) will be used to develop the funding formula behind the modelling tool. The Resource Allocation Model (RAM) will be interactive and allow stakeholders to run alternative scenarios of resource allocation to facilitate transparent discussions and decision-making.

During the engagement, Beacon Strategies will:

  • Identify Australian and international best practice weighted population funding formulas used in primary health care and for targeted population groups and outline the methodological approach of developing evidence-based funding formulae applied to targeted populations (desktop overview).

  • Establish a baseline of relevant local data drawing on publicly available data sources and data made available by the PHN (establish baseline data).

  • Develop an interactive Excel-based model for the allocation of resources and undertake scenario analysis for the allocation of the 2019-2020 North Coast Aboriginal and Torres Strait Islander health services (Resource Allocation Model).

  • Provide advice and input on how the proposed new weighted funding formula could integrate with NCPHN’s Shared Investment Strategy and Optimisation project (advice and recommendations).

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