Designing a funding system for rehabilitation services. Part 1: Rationale and recent developments.

Part 1 of this paper presents a critical review of several aspects of risk-sharing in rehabilitation that need to be taken into account in designing a funding system. It argues the case for the development of a new rehabilitation payment system separate from both the acute care casemix system and funding arrangements for long-term residential care. The paper then outlines a number of recent developments in the United States and in Australia that draw attention to the need for such a separate system, and details the current provisions for funding rehabilitation in Victoria. An analysis of existing rehabilitation classification systems is given to set the scene for proposing further developments, which are taken up in part 2 of the paper (to be published in the next issue of Australian Health Review).