The Australian healthcare system is founded on the concept of equity of access. Discuss this Statement in relation to the concepts of Effectiveness and efficiency and any interrelationships that may exist.1. Introduction: As stated in the National Health Reform Agreement, equity of access is the fundamental foundation of the Australian healthcare system (DHA. 2013a). Effectiveness, which focuses on the relationship between outcomes and outcomes, and efficiency, which defines achieving maximum outcomes with available inputs or resources, these are other elementary aspects of the Australian healthcare system. Equity, effectiveness and efficiency represent an ideal healthcare system, which should be effective and efficient and capable of achieving specified outcomes (effectiveness) so as to maximize access (distribution); output (productivity) and results within available resources (NHHRC. 2009. P.4). Responsibilities such as funding, delivery and regulation are shared by Australia's national and state governments and make the Australian healthcare system universally accessible to the population (AIHW, 2000). Funding of public hospitals and community care is a joint effort of the common wealth (i.e. the federal government), states and territories where the common wealth uses tax revenues to fund most hospital medical services and research health (Department of the Common Wealth Health and Aged Care, 2000). . Since 1990 the national and state health ministers have worked with many stakeholders to develop a national framework for evaluating the Australian health system (NHPC, 2000). The NHPC (NHPC, 2001) initiated a new Australian health performance measurement framework adapted from the Canadian Health Information Roadmap Initiative indicators framework. Equity: Equity in health ...... middle of paper ....... The validity of diagnosis-related groups for use in Victorian public hospitals: report to the Department of Health, Management and Budget. Victoria, Kensington, University of New South Wales. Palmer, G. R. (1991). The use of DRGs in the management and planning of hospital services. Australian Economic Review, 24(1), 62-70. Scotton, R. B., & Macdonald, C. R. (1993). The creation of Medibank (no. 76). School of Health Services Management, University of New South Wales. Sen, A. (1992). Inequality reexamined. Oxford University Press.Wilson, R.M., Runciman, W.B., Gibberd, R.W., Harrison, B.T., Newby, L., & Hamilton, J.D. (1995). Australian Health Care Quality Study. Medical Journal of Australia, 163(9), 458-471. World Health Organization. (2000). World Health Report 2000: Health Systems: Improving Performance. World Health Organization.