This report explores practical recommendations to inform the improved integration of virtual care into the broader Australian health system. It outlines the current challenges in capturing virtual care activity and cost data and provides a roadmap for future action. 

International case studies are explored which highlight key lessons for Australia. The report identifies five key recommendations which seek to improve the integration of virtual care into pricing and funding models and to develop a national strategy.

Key findings

• All virtual care models identified by stakeholders that are in-scope for National Health Reform Agreement funding have existing activity based funding (ABF) or block funding arrangements.
• While most models can be reported in the existing activity and cost data collected, they may not be specifically and easily identifiable under current reporting specifications.
• There is inconsistent inclusion and allocation of the costs associated with virtual care in national costing.
• Broader health system challenges may be further increased by the emergence of virtual care as it breaks down the boundaries of the health system across primary care, aged care and the National Disability Insurance Scheme.

Key recommendations

1. Developing a national definition and taxonomy of virtual care.
2. Improving the visibility of virtual care in national data collections.
3. Improving national consistency in the identification and allocation of virtual care costs.
4. Considering supplementary collections to the National Hospital Cost Data Collection to cost service innovations, including virtual care.
5. Developing a pathway to facilitate the transition of service innovations to ABF or alternative funding models that improve value.