What is the role of government?
The Australian government plays a strong role in national policymaking but generally funds, rather than provides, health services. The federal government funds and administers the national health insurance scheme, Medicare (previously a statutory authority and now a government agency), and pharmaceutical benefits; funds public hospitals and population health programs (with the states/territories); regulates much of the health system, including private health insurance (PHI), pharmaceuticals, and medical services; and has the main funding and regulatory responsibility for government-subsidized residential care facilities. Under the National Health Reform Agreement, endorsed by the Council of Australian Governments in 2011, the role of the Australian government has been strengthened in relation to the funding and governance of public hospitals and primary care (see below). The eight states and territories (“states”) administer public hospitals and regulate all hospitals and community-based health services. Local government is involved in environmental health and some public health programs, but not clinical services.