Safety and Quality under Activity Based Funding and Activity Based Management (ABF/ABM)

What is ABF/ABM?

Activity Based Funding and Activity Based Management relate to the way the health service is funded by the Government. ABF/ABM is the way WA Health will plan, budget, allocate and manage activity and financial resources to deliver safe high quality health services for the WA community.

In July 2010, WA Health began funding health service providers (including Area Health Services and hospitals) according to activity. Activity is everything providers do for, with and to patients, consumers, residents, clients and their families and carers.

Previously, services were funded largely on a historical basis.

The Council of Australian Governments (COAG) recently agreed to commence Activity Based Funding nationally in July 2012. Read more about the Heads of Agreement - National Health Reform (PDF)

For more information about ABF/ABM in WA please visit:

What is the role of Safety and Quality in ABF/ABM?

High quality safe care usually costs less and is better for the patient.

Managing clinical risk and improving clinical quality through the range of safety and quality programs, policies and initiatives throughout WA Health plays a central role in patient outcomes and system efficiency. The development of safety and quality indicators will be an important part of the performance management and monitoring under ABF/ABM.

A recent paper highlighted the costs and waste related to poor quality care, and outlined the opportunity for improved governance, reporting processes and efficiency incentives under ABF/ABM:

For more information, please visit: Safety and Quality - Activity Based Funding and Management (staff intranet)

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