​​​​​​​Collaborative Commissioning was established to transform the way healthcare is delivered and funded in New South Wales through a one-system approach.​​

What is Collaborative Commissioning?

Collaborative Commissioning is a partnership between local health districts (LHD), primary health networks (PHN), and other service providers to address community health needs and reduce hospital visits. This approach promotes local autonomy and accountability in delivering patient-centred care. In New South Wales, various regional partnerships are being developed to demonstrate the effectiveness of value-based payment methods and to assess potential financial benefits.


Benefits of Collaborative Commissioning

Benefits of Collaborative Commissioning include improving resource use through joint regional planning, focusing on value-based healthcare and the Quadruple Aim, anticipating future system demands and financial needs, and influencing funding reforms at the state and federal levels.


Guiding principles of Collaborative Commissioning

The guiding principles of Collaborative Commissioning are:

  1. shared responsibility among providers and organisations,
  2. robust consumer engagement with a focus on delivering results,
  3. local care pathway design for better patient outcomes, and
  4. funding reforms such as flexible purchasing and provider arrangements.
  5. use of data analytics, business analytics, implementation support, and digital technologies supported by Lumos
  6. encourage continuous learning to support improvement and innovation


How Collaborative Commissioning works

​Patient Centred Co-commissioning Groups (PCCGs) work together to improve health outcomes for the local community by addressing high priority population needs and providing high quality care for all. This approach is supported by regional partnerships and four key components:

  1. Governance: This involves local autonomy while maintaining joint accountability.
  2. Local co-designed solutions: Partners collaborate on planning and funding to enhance care and outcomes for specific populations.
  3. Outcome focus: Enhanced data is used to monitor, evaluate, and improve services, with the assistance of Lumos.
  4. Funding model: Value and outcomes are paid for through funding reform.

PCCGs receive temporary funding to kickstart their initiatives, with the aim of achieving financial sustainability over time by establishing governance structures, staffing, and partnerships with local providers and communities. 


Phases of Collaborative Commissioning

Joint Development Phase (JDP): This phase prepares partnerships for launching Collaborative Commissioning by allowing them to refine their local model of care and work towards sustainability.


Implementation Stage: Following the JDP, each PCCG enters a three-year implementation stage. All parties must sign a contract (the “Head Agreement") outlining roles, responsibilities, decision-making processes, and data sharing arrangements.​

More information


Current as at: Friday 15 March 2024
Contact page owner: System Performance Support