Why the new way of funding public hospitals won't work (from The Conversation)

July 1 2012 saw the introduction of one of the most important health care reforms for Australia's public hospitals: national activity-based funding (ABF). Hospitals will now be paid a fixed price (the national efficient price) for each episode of care, meaning ABF is essentially a fee-for-service payment model. Treasuries and governments hope ABF will make hospitals more efficient.But key flaws in the design of the scheme may hamper these potential cost savings and result in an ineffective funding system.

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