Review of Primary Health Network Business Model & Mental Health Flexible Funding Model

Overview

Primary Health Networks (PHNs) were established by the Australian Government in 2015 as a response to the recommendations of the Review of Medicare Locals conducted by John Horvath (2014).

Since they were established, the primary care sector has changed significantly and the role of PHNs has expanded in response to primary care and digital reforms, COVID-19, climate driven emergencies, and impacts from workforce shortages. Looking forward, Strengthening Medicare and MyMedicare, reviews of practice incentives, workforce distribution levers, Scope of Practice, the next National Health Reform Agreement, and commitments under Closing the Gap will also influence the future operating environment and the role of PHNs.

PHN policy settings have not changed significantly since they were established. The Department of Health and Aged Care is initiating a review to examine the PHN Program business model in the context of the changing operating environment, and to ensure the Program is structured to meet Government objectives:

• improving the efficiency and effectiveness of health services for people, particularly those at risk of poor health outcomes;
• improving the coordination of health services and increasing access and quality support for people

Why your views matter

The Department of Health and Aged Care (the Department) is seeking feedback via a Consultation Paper from consumers, frontline health practitioners, commissioned service providers and other interested parties about their experiences with the PHN Program. While the Government also provides support for Australians through a range of other primary care programs and funding streams these are out of scope of this Review.

You are invited to respond to the consultation questions by sharing a written submission. Responses will be accepted until 11:59PM AEDT on 22 January 2025.

Your feedback will be aggregated and analysed to identify key trends, themes, and priority areas. Any specific feedback referenced in reports or publications will remain anonymous to protect your privacy. Submissions and contact details are only for use in the Review process and will not be published. The Department will use summarised insights to provide advice to Government on addressing key concerns and enhancing the effectiveness of the PHN Program.

The Department is seeking written responses across five key topics:

• Program Objectives and Activities
• Program Governance
• Regional Planning, Communication, and Engagement
• Program Funding Arrangements
• Mental Health Flexible Funding Stream

We greatly value your input and look forward to your contributions to this discussion. Thank you for being part of this vital review process.

We welcome response in a written document response through the final page of this consultation. Your submission may address all the questions posed in the discussion paper or focus on a selection that you feel most strongly about.