The National Economic and Fiscal Commission (NEFC) has highlighted the need to improve health funding and accountability at the 25th National Health Conference held at APEC Haus in Port Moresby on October 8 and 9, 2026.

NEFC Principal Policy Analyst for Cost and Finance, Mala Marare, presented on health financing reforms and ways to strengthen the governance and financial arrangements of Provincial Health Authorities (PHAs).

Mr. Marare said health funding must reflect the actual cost of delivering services to ensure hospitals and health facilities have the resources they need to serve communities.

He highlighted the establishment of PHAs as an important step towards bringing provincial hospitals and rural primary health services under a more integrated management system, while noting that challenges remain in funding and service delivery capacity.

As part of its ongoing Intergovernmental Financing Arrangement Review (IGFAR), NEFC is conducting a proposed Cost of Services Study covering 20 PHAs.

The study will examine the costs of hospital treatment, public health programs, administrative operations and governance, as well as assess the capabilities of Level 4 and Level 5 hospitals.

Mr. Marare noted that health authorities face different operating costs and service delivery challenges, meaning funding arrangements must account for their individual needs rather than apply the same cost estimates across all facilities.

The findings are expected to help guide future health funding decisions, strengthen accountability and ensure resources are directed towards improving services for communities across Papua New Guinea.

NEFC said its participation in the conference reflects its commitment to providing evidence-based policy advice to support fairer distribution of public resources and a more effective health system nationwide.