Key messages

  • Activity Based Funding (ABF) is applicable to a patient admitted to a hospital for acute care.

Acute admitted care is care provided to patients who have undergone a formal admission process, where the clinical intent or treatment goal is the provision of acute care.

This also applies if the patient is a baby born in hospital, or is nine days old or less at the time of admission and has been qualified for one or more days.


Australian Refined Diagnosis Related Groups (AR-DRG) are used to classify acute admitted care.


All acute admitted care data are collected at the patient level and reported through the Victorian Admitted Episodes Dataset (VAED).

The unit of count for Activity Based Funding (ABF) acute admitted care is ‘inpatient separation’. It includes stays for patients who are treated and go home, and patients who are subsequently admitted to hospital or transferred to another facility for further care.


Costing data for ABF acute admitted care is collected at the patient level. All Victorian health services are required to submit annual patient-level cost data to the Victorian Cost Data Collection (VCDC). VCDC data is then submitted to the National Health Cost Data Collection (NHCDC) via the Independent Hospital Pricing Authority (IHPA).


Eligible facilities in scope for ABF in the acute admitted care stream are all current health services that report to the VAED.