Activity Based Funding

Activity-Based Funding (ABF) is a central feature of the Rudd hospital reform plan (‘A National Health
and Hospitals Network for Australia’s Future’).

ABF means exactly what it says – providers are funded based on the activity they undertake.

Because most hospital activity involves treating patients – or cases – the term ‘casemix funding’ is
also used.
‘Casemix’ literally means the ‘mix of cases’ that a health service treats.