Funding of Northern Territory public hospitals

The Northern Territory is Australia's third largest jurisdiction by land mass but it is the smallest by population. By proportion it accommodates the largest number of Aboriginal people who suffer the greatest burden of disease with high morbidity, mortality, admission rates and lengths of stay. Output based funding by DRG is based on the "typical" Australian population which is not that of the Northern Territory. The NT has had to significantly modify its approach to funding to meet the needs of its population. The current funding method based on detailed analyses of clinical data with small numbers may be inappropriate where simpler methods tailored to the NT population could suffice.