From Stalemate to Strategy: Hospital Funding and Discharge Pathways across Aged Care, NDIS, and Supported Living

In late 2025, negotiations between the Commonwealth and state and territory governments over Australia’s next five-year public hospital funding agreement reached a critical impasse. State and territory health ministers rejected the federal government’s revised funding proposal—valued at more than $20 billion and including targeted measures to address hospital bed block—arguing it fell short of prior commitments and was insufficient to meet escalating demand across the health system.

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At the centre of this funding deadlock is a deepening hospital discharge crisis.

 

Thousands of Australians, particularly older people and individuals with disability, remain in public hospital beds despite being medically ready for discharge. Inadequate access to residential aged care, supported accommodation, Specialist Disability Accommodation, and NDIS-funded supports has intensified pressure on acute services and exposed long-standing structural failures in how hospitals interface with aged care, disability, and community systems.

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This opening session will examine how the funding stalemate has crystallised systemic weaknesses in discharge planning and cross-sector integration.

 

Leaders from government, health administration, aged care, and the disability sector will explore the policy, economic, and operational implications of the impasse, and what it reveals about the urgent need for coordinated funding pathways and integrated discharge models.

Attendees will gain a clear national overview of the challenges facing Australia’s hospital system in 2026 and beyond, setting the foundation for the conference’s focus on practical, collaborative solutions to unblock hospital capacity and create safe, person-centred pathways from hospital to home.

From Hospital to Home: National Mental Health Accommodation Strategies and Victorian Innovations for Seamless Discharge Pathways

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​Prolonged hospital stays for people experiencing mental health crises remain a significant challenge across Australia. Many patients occupy hospital beds longer than necessary due to limited access to suitable accommodation, community supports, and coordinated care, placing pressure on acute services and compromising patient outcomes.

Several state-based initiatives are demonstrating innovative solutions to this challenge.

In New South Wales, the Pathways to Community Living Initiative (PCLI) supports long-stay inpatients and those at risk of extended hospital stays to transition into community-based living with tailored housing and clinical supports.

The Mental Health-Housing In Reach Service (MH-HIRS) pilot has shown that coordinated pre- and post-discharge case management can prevent homelessness and enhance continuity of care, while the HASI and HASI Plus programs provide intensive transitional and ongoing support for adults with severe mental illness, reducing hospital admissions and maintaining stable accommodation.

Victoria is introducing its first peer-led Lived Experience Residential Service in Moolap, offering short-term, home-like accommodation as an alternative to hospital admission, providing a model for crisis support and discharge planning with broader national applicability.

 

Across Australia, NDIS-linked psychosocial residential rehabilitation programs, such as those provided by Mind Australia, enable participants to develop independence and transition to mainstream housing with recovery-oriented supports.

 

Research consistently highlights that lack of stable housing at discharge is a major risk factor for post-hospital homelessness, while improving housing pathways significantly enhances continuity of care, patient wellbeing, and hospital system efficiency.

This session will explore how hospitals, community housing providers, NDIS planners, and mental health services can collaborate to create centralised, integrated pathways that streamline discharge planning, leverage available accommodation (including transitional, short-term, and supported housing), and ensure patients receive the right support at the right time. Attendees will gain insight into national strategies, Victorian innovations, and practical approaches for creating seamless hospital-to-home transitions for individuals with mental health needs, reducing bed block, and supporting recovery across the continuum of care.

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Hospital discharge processes: Insights from patients, caregivers, and staff in an Australian healthcare setting

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This session will examine hospital discharge as a critical point in healthcare delivery, influencing patient outcomes, continuity of care, and hospital resource utilisation.

Drawing on qualitative research conducted in an Australian medical ward-including interviews with patients, caregivers, and healthcare staff, and structured observations - the study identified three key themes: communication, system pressure, and continuing care.

Challenges included inconsistent information sharing, gaps between hospital teams, and patient confusion regarding follow-up care. System pressures to expedite discharges, particularly during weekends or out-of-hours periods, contributed to perceptions of premature discharge and unplanned readmissions.

 

The findings highlight the tension between patient-centred care and service efficiency, underscoring the need for improved communication, stronger community-based support, and structured systems for tracking referrals and post-discharge care.

Delegates will gain practical insights into strategies for optimising discharge processes, enhancing patient experience, and improving safety and continuity of care.

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What works across the Nation: Comparing State Hospital Discharge Policies to unlock System-Wide Solutions

 

Hospital discharge bottlenecks across Australia are increasingly driven by misaligned policies and funding pathways spanning public hospitals, mental health services, aged care, the NDIS, and supported housing systems.

 

While each state and territory faces similar pressures, differing policy responses have produced varied outcomes -creating important opportunities to identify what works, what fails, and what can be scaled nationally.

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This panel will compare hospital and mental health discharge policies across key jurisdictions, including Western Australia, Victoria, New South Wales, and Queensland. Through cross-sector case studies, panellists will examine how approaches to mental health step-down care, residential rehabilitation, aged care access, NDIS planning, Specialist Disability Accommodation , Supported Independent Living , and transitional housing either alleviate or exacerbate discharge delays.

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The discussion will explore the systemic drivers of hospital bottlenecking, including fragmented funding responsibility between health, mental health, aged care and disability systems; inconsistent discharge planning and escalation pathways; limited access to short-term and supported accommodation; and operational disconnects between hospitals, community mental health services, and housing providers.

 

Particular attention will be given to the impact on people experiencing mental health crises, who often face extended hospital stays due to the absence of appropriate community-based alternatives.

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Importantly, the session will focus on effective state-based models and collaborative frameworks that have improved discharge flow, strengthened continuity of care, and reduced reliance on prolonged hospitalisation.

 

Panelists will highlight transferable policy levers, integrated planning approaches, and operational strategies that support safe, timely, and person-centred transitions from hospital to home.

Attendees will gain practical insights into how greater national alignment across health, mental health, aged care and disability systems can reduce discharge bottlenecks, improve outcomes for people with complex needs, and restore capacity across Australia’s hospital network.

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Closing the Revolving Door: How SDA Funding and NDIS Transitions influence Hospital Readmissions and flow

Across Australia, delays, changes, or interruptions in Specialist Disability Accommodation  and related NDIS housing and support funding are contributing to a growing cycle of hospital readmissions and prolonged hospital stays.

When Participants are medically ready for discharge but cannot access appropriate SDA or supported living arrangements in a timely way - due to delayed decision-making, funding adjustments, or changes in accommodation plans- they often remain in hospital beds longer than necessary or are readmitted shortly after discharge.

These repeated transitions place further strain on hospital capacity, contribute to bed block, disrupt continuity of care, and increase costs in an already stretched health system.

This session will explore how SDA funding pathways, plan reviews, and transitional support arrangements intersect with hospital discharge planning and post-discharge stability.

Delegates will gain insight into the systemic impact of delayed SDA approvals, the challenges of accommodating people with complex support needs in community settings, and the downstream effect on emergency departments, inpatient units, and discharge coordinators when housing and supports are unstable or withdrawn.
 

The discussion will also examine strategies to reduce readmissions and improve continuity of care through stronger collaboration between hospitals, NDIS providers, and housing stakeholders.

 

Topics will include early identification of Participants requiring SDA or supported living, streamlined transition frameworks, housing predelivery planning, and integrated care pathways that support sustained discharge outcomes rather than short-term exits.

 

By understanding and addressing the “revolving door” phenomenon, delegates will be better equipped to enhance hospital flow, reduce unnecessary bed occupancy, and support participants to live safely and sustainably in the community.

Bariatric Care Transitions: From Hospital to Home – Designing Accessible Housing and Support Solutions for Patients with Obesity

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Hospital-to-home transitions for bariatric patients present unique challenges that go beyond medical care. Individuals with obesity often require specialised housing designs, adapted SDA or SIL homes, and allied health supports to ensure safe and effective recovery. Standard residential designs may not accommodate bariatric needs, such as reinforced fixtures, wider doorways, accessible bathrooms, and lift-assisted mobility, which can compromise patient safety and independence.

This session explores how purpose-built, accessible housing—SDA, SIL, short-term, or transitional accommodation—can bridge the gap between hospital care and home, providing environments tailored to the physical needs of bariatric patients while maintaining comfort, dignity, and therapeutic outcomes. Delegates will examine the role of design innovation, investment strategies, and cross-sector collaboration among hospitals, housing providers, NDIS coordinators, allied health professionals, and support services.

Through national case studies and practical examples, participants will gain insight into how multi-disciplinary planning, adaptive housing design, and integrated support services can reduce extended hospital stays, prevent readmissions, and create sustainable, person-centred pathways for patients with obesity transitioning from hospital to home.​

Operational Challenges & Case Studies

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​This session will discuss the operational challenges hospitals face when coordinating care with NDIS and SDA providers, including workforce limitations, housing shortages, and the complexities of mental health support.

Through case studies,  delegates will explore the experiences of high-support individuals, youth in crisis, domestic violence survivors, and elderly socially vulnerable patients.

The session will also examine where existing policies create bottlenecks or gaps, highlighting opportunities for more effective, integrated service delivery.