The proposal has three components.

Component 1: The Commonwealth Government would fund 50 per cent of the annual growth in
the efficient cost of activity‐based and block‐funded hospital services on an ongoing basis and
would maintain the activity‐based funding model.

• Under the baseline policy, the Commonwealth Government will fund 45 per cent of the annual growth in the efficient cost of activity‐based and block‐funded hospital services over the period to 2029‐30, with annual funding growth capped at 6.5 per cent.

Component 2: The Commonwealth Government would establish an independent national health
agency to support the integration of health services at a regional level.

• The new agency would take over the functions of the Independent Hospital Pricing Authority, the Administrator of the National Health Funding Pool, the Australian Institute of Health and Welfare, the Australian Digital Health Agency, and the Australian Commission on Safety and Quality in Health Care. These agencies would be abolished.
• The new agency would also have responsibility for stewardship and funding decision making for primary care and dental care, with these functions transferring from the Department of Health.
• All new agency staff would be co‐located in Canberra.
• The new agency would be distinct from the Commonwealth, state and territory health departments, and would report directly to the Council of Australian Governments or the Council of Australian Governments Health Council.

Component 3: The Commonwealth Government would provide $10 million per year for four years
to public hospitals to boost maternity care and breastfeeding support and increase access to
up‐to‐date information in the antenatal and postnatal period, particularly in rural and regional
Australia. This would comprise:

• $4 million per year to collect data about birth and care experiences of women in hospitals via a survey of prenatal and antenatal care
• $6 million per year for public hospitals to become Baby Friendly accredited, which would ensure all public hospital maternity facilities meet best practice standards for promoting and supporting breastfeeding.

The proposal would have effect from 1 July 2019.