The Australian government plays a strong role in national policymaking but generally funds, rather than pro-
vides, 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 sys-
tem, including private health insurance (PHI), pharmaceuticals, and medical services; and has the main fund-
ing 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.