With regard to financing agreements, which fall within the traditional scope of contracting, the Working Group felt that a similar hierarchy of instruments could be applied more appropriately to the different levels of risk and complexity inherent in different financing relationships. The previous chapter on contracting provided for the separation of all financial relationships that do not meet the standard definition of acquisition and to manage these financial relationships on the basis of a non-financial agreement. In practice, cases of non-obtaining one or more of the following examples include: it is not surprising that the response of state and territory governments to the loss of Commonwealth hospital funding has been negative.  The Australian Health Care and Hospitals Association, which represents the public hospital sector, expressed concern that changes to hospital funding obligations will have a direct impact on hospital wait times and standards. Others believe that potential efficiencies are lost by applying an activity-based funding model at an effective price, with a return to a population/CPI model that does not encourage these efficiency gains.  In the ACT, the standard long-term service funding model is used for virtually all contractual relationships with the community sector, regardless of the size or triviality of the relationship. The same instrument, capable of addressing multi-million dollar relationships, is used regularly for agreements of less than $50,000 per year, 22 of which are currently in the ACT. After the investment, the Omaha Mutual Financing Agreement allows termination and withdrawal by the issuer or investor for any reason, but the terms of the contract require that the 30 to 90-day period before the last day of the interest period be granted either by the issuer or by the investor.  Activity-based funding includes hospital funding based on activity level. It requires setting an effective price for services. This price is set by the Independent Hospital Price Authority. The Commonwealth and the states pool their contributions into the National Health Funding Pool, which then makes payments.
Some smaller regional hospitals continue to receive bulk funding.  S Duckett, `budget brings back the hospital funding agreement in the future` The Conversation, weblog, 16 May 2014, accessed on 16 May 2014. The budget included announcements that affect Commonwealth funding of public hospitals and other programs that will be important to federal relations. A number of related health care funding agreements with states and territories will be terminated, postponed or revived. The expected savings from changes to public hospital funding are significant.