Promoting Better Value for the Health Dollar

Improving the provision of value-based health care requires a health system that provides the right set of incentives and funding models to achieve it. The aim of Research Area 3 is to improve the provision of value-based health care through the generation and use of new knowledge about economic incentives in funding models, priority-setting and decision-making within the healthcare system, and the role and effects of competition.

Research Area 3.1: Using Financial Incentives to Encourage Value-based Health Care

Research Leads: Professors Tony Scott and Rachelle Buchbinder

Focus Questions:

  1. How can payment models for care providers best incorporate performance, quality, efficiency and outcomes?
  2. What funding models might deliver better value for the health dollar by incorporating quality and outcomes?
  3. What is the international experience in value-based purchasing – how are these designed? How is success measured? Is success dependent on features of the health system? What are the unintended consequences?
  4. What mechanisms are available to allow for the disinvestment in procedures, technology or services that have low value?
  5. Is the introduction of activity-based funding promoting the right care at the right time and over time?

Anticipated impact:

This research will provide important knowledge for key stakeholders when designing and implementing funding models and financial incentives for doctors and hospitals.

Research Area 3.2: Priority-setting and Decision-making in Health Care Organisations

Research Lead – Professor Jon Karnon

Focus Questions:

  1. What is the international experience in value-based purchasing – how are these designed?
  2. What mechanisms are available to allow for disinvestment in procedures, technology or services that have low value?

Anticipated Impact:

Improve value-based purchasing and commissioning across public healthcare, including Commonwealth, state and territory health departments, public hospitals and primary healthcare networks. Tools and frameworks that explicitly consider opportunity cost to better inform priority-setting and funding decisions.

Research Area 3.3: Markets, Competition and Choice in Health Care

Research Lead: Professor Tony Scott 

Focus Question:

Does creating markets and contestability involving the private sector deliver better value for the health dollar?

Anticipated Impact:

Provide important knowledge for key stakeholders when structuring the system and promoting competition and choice in health care. Inform the regulation of numbers and distribution of health care providers, and policies to increase choice and competition.