The Population-based Funding Formula (PBFF) determines the share of funding allocated to each District Health Board, but does not determine the overall level of funding. The aim of the PBFF is to fairly distribute available funding between DHBs according to the relative needs of their populations and the cost of providing health and disability support services to meet those needs. The PBFF formula has not been reviewed since it was introduced in 2003, apart from some minor adjustments following the 2006 census.
A review has been signaled and scoping work started at the Ministry. While the sector would like a comprehensive review that looks at the formula itself to determine whether allocations are fair and reflect current health needs, the Minister has signaled that this is unlikely.