Promoting Better Value for
the Health Dollar

Research Theme 3 covers four major areas: using financial incentives to promote value-based healthcare; priority setting and decision-making in healthcare organisations; the impact of markets, competition and choice in healthcare; and the impact of a collaborative research program on cost savings and efficiencies in healthcare settings.

Research Stream 3.1: Using Financial Incentives to Encourage Value-based Healthcare

This Research Stream provides important knowledge for key stakeholders when designing and implementing funding models and financial incentives for doctors and hospitals. It addresses how payment models for care providers can best incorporate performance, quality, efficiency, and outcomes as well as the question of what funding models might deliver better value for the health dollar by taking quality and outcomes into consideration. It examines international experience with value-based purchasing, looking at its design, measurements of its success, and its unintended consequences. This Research Stream also explores available mechanisms for disinvestment in low-value procedures, technology, and services, and it assesses whether the introduction of activity-based funding promotes the right care at the right time.

Research Stream 3.3: Markets, Competition and Choice in Healthcare

This Research Stream provides important knowledge for key stakeholders when structuring the system and promoting competition and choice in healthcare. It informs the regulation of numbers and distribution of healthcare providers, and policies to increase choice and competition. The Research Stream assesses whether creating markets and contestability involving the private sector deliver better value for the health dollar.

Research Stream 3.2: Priority-Setting and Decision-Making in Healthcare Organisations

This Research Stream aims to improve value-based purchasing and commissioning across public healthcare, including Commonwealth, state and territory health departments, public hospitals, and primary healthcare networks. It examines tools and frameworks that explicitly consider opportunity cost to better inform priority-setting and funding decisions. Specifically, it analyses the design and international experience in value-based purchasing. The Research Stream also explores mechanisms to allow for disinvestment in procedures, technology, or services that have low value.

Research Stream 3.4: Impact of a Collaborative Research Program on the Realisation of Cost Savings and Efficiencies in Healthcare Settings

This Research Stream aims to develop new frameworks to support the uptake and sustainability of research-based solutions to improve of the performance of a state-wide health service. Specifically, it examines the impact of the ten-year Research Translation Program conducted by the Department of Health in Western Australia.

Research Theme 3: Promoting Better Value for the Health Dollar


Preferences of physicians for public and private sector work

Scott A, Holte JH, Witt J. 2020. Human Resources for Health.

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It’s not the model, it’s the way you use it: exploratory early health economics amid complexity

Partington A, Karnon J. 2020. International Journal of Health Policy and Management.


An examination of public hospital productivity and its persistence: an index number approach

Cheng CC, Scott A, Sundararajan V, Yan W, Yong J. 2020. The Australian Economic Review.


Scoping review of Australian evaluations of healthcare delivery models: are we making the most of the evidence?

Roseleur J, Partington A, Karnon J. 2020. Australian Health Review.

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