Background of performance indicators
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Introduction
Mental health care is delivered by diverse providers operating in a variety of settings under different public and private governance, management and financial arrangements. As such, data are collected from multiple sources and for various purposes.
Health indicators are used to evaluate and monitor the health of the population and the success of the health system (AIHW 2016). They are statistics based on data collected from multiple sources to report on a particular aspect of health or on the performance of the health system (AIHW 2016).
Indicator sets can come from multiple government initiatives, frameworks and/or agreements with common or distinctive purposes and timeframes. Over time, a number of different mental health indicator sets have been developed to measure the performance and progress in the delivery of services across the mental health sector. However, there are considerable overlaps between these indicator sets and the aspects they are covering.
The indicators included in this reporting focus on the public mental health services that have been nationally agreed between the Australian and state and territory governments.
The following national initiatives and agreements provide general guidance on the development of mental health performance indicators over the years.
National Mental Health Performance Framework
The National Mental Health Performance Framework (NMHPF) aims to improve all health outcomes for Australians living with mental illness and ensure sustainability of the Australian health system. The framework is based on the Australian Health Performance Framework and supports Australian and state and territory governments’ commitment to improving accountability and transparency at the Mental Health Service Organisation level. There are 3 areas of the framework through which key questions are posed concerning how well the mental health system is performing (Figure 1).
Figure 1: The National Mental Health Performance Framework
Key Performance Indicators for Australian Public Mental Health Services
The key performance indicators for Australian Public Mental Health Services were developed to improve accountability and transparency and to address the Health System Performance of the NMHPF. The indicators cover the concepts of effectiveness, efficiency, appropriateness, access, continuity and capability, all central ideas to understanding how a mental health organisation performs.
A key performance indicator (KPI) is a measure that describes a situation concisely, helps track progress and performance and acts as a guide to inform decision making. In the public mental health sector, these indicators cover different aspects of services. They can inform consumers', service providers' and funders' impressions of service and service performance.
Australian Governments have collaborated to improve the collection and use of mental health service information, resulting in the development of both the National Mental Health Performance Framework and the Key Performance Indicators for Australian Public Mental Health Services in 2005.
The KPIs were developed to measure performance in a way that supported quality improvement activities for mental health services (NMHPSC 2013). The KPIs address the health system dimension of the National Mental Health Performance Framework.
National Healthcare Agreement
The National Healthcare Agreement (NHA) indicators provide an integrated approach to improving health outcomes for Australians and the sustainability of the health system.
The NHA defines the objectives, outcomes, outputs and performance measures, and clarifies the roles and responsibilities that guide the Australian Government and states and territories in delivery of services across the health sector.
Under this Agreement, reporting occurs against the following mental health-related indicators:
- Proportion of adults with very high levels of psychological distress
- Treatment rates for mental illness
- Rate of community follow up within first seven days of discharge from a psychiatric admission
The proportion of adults with high or very high levels of psychological distress is also included in the Australian Health Performance Framework and reported by the Australian Institute of Health and Welfare.
Data for the indicators on treatment rates and rate of community follow up are reported on the Performance indicators summary page.
Specifications for the National Healthcare Agreement indicators are available on the AIHW online metadata registry, METEOR.
National Mental Health and Suicide Prevention Agreement
The National Mental Health and Suicide Prevention Agreement (National Agreement) sets out the shared intention for all governments to work in partnership to improve the mental health of all Australians, reduce the rate of suicide toward zero, ensure the sustainability and enhance the services of the Australian mental health and suicide prevention system. Having the relevant data is critical to implement the agreement.
For the mental health related areas where there are no indicators or data available, please refer to the broader health indicators for the Australian Health Performance Framework and the resources in the ‘Where can I find more information?’.
Where can I find more information?
Determinants of health
- Social & economic factors & suicide (Suicide and self-harm monitoring)
- Behaviours & risk factors (Suicide and self-harm monitoring)
- Mental health and substance use
- Specialist homelessness services (Mental health)
- Income and employment support (Mental health)
- Treatment use (Mental health)
Health status
AIHW (2016) Australia's health 2016, AIHW, Australian Government, accessed 16 January 2026.