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Making activity-based funding work for mental health.
Sebastian P Rosenberg1, Ian B Hickie
1Brain and Mind Research Institute, University of Sydney, Kingston, Australia. sebastian.rosenberg@sydney.edu.au
Summary
Activity-based funding (ABF) in Australian mental health care presents risks and benefits. Successful implementation requires strengthening infrastructure to support community-based care models, not just existing hospital systems.
Area of Science:
- Health economics
- Mental health policy
- Healthcare funding models
Background:
- Activity-based funding (ABF) was implemented in Australian mental health services from July 1, 2013.
- There is a critical need for ABF implementation to align with Australia's goal of effective community-based mental health care.
- Current infrastructure supporting ABF in mental health is underdeveloped, and states/territories face challenges meeting existing acute hospital-based care demands.
Purpose of the Study:
- To assess the risks and benefits associated with implementing ABF in mental health.
- To ensure ABF implementation supports the development of community-based mental health care models.
- To inform the Independent Hospital Pricing Authority (IHPA) about the mental health landscape for ABF deployment.
Main Methods:
- Qualitative analysis of the current state of mental health funding and infrastructure in Australia.
- Review of existing community-based mental health care models.
- Assessment of potential risks of ABF funds being used for existing hospital-based services.
Main Results:
- ABF implementation in mental health carries significant risks and benefits.
- Weak infrastructure poses a challenge to effective ABF application in mental health.
- A risk exists that ABF funds may sustain current hospital-centric models rather than foster new community-based care.
Conclusions:
- The successful integration of ABF in mental health hinges on robust infrastructure development.
- ABF has the potential to drive the emergence of innovative community-based mental health care models.
- Understanding the existing mental health landscape is crucial for the IHPA to effectively deploy ABF.
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