Primary Health Networks (PHNs) play a central role in shaping Australia’s local mental health system. Rather than directly delivering every service, PHNs work across communities to identify health needs, commission services, improve coordination and strengthen the capacity of primary and community healthcare providers. The Australian Government describes three core PHN functions: coordinating and integrating local services, commissioning primary care and mental health services, and capacity-building providers.

For organisations working across mental health, understanding the role of PHNs in mental health services is important because PHN decisions can influence which services are available, who they reach and how effectively different parts of the system work together. Larter supports health organisations and PHNs with planning, commissioning, service design and evaluation to help translate local evidence into practical improvements.

What Role Do PHNs Play in Mental Health Services?

PHNs have an important role in primary mental healthcare Australia, particularly where local communities experience service gaps or barriers to accessing appropriate support.

Their role broadly involves:

• Assessing local population health and mental health needs
• Identifying gaps, duplication and access barriers
• Planning and commissioning mental health services
• Supporting primary care and community providers
• Connecting health and community services
• Building provider capability and workforce capacity
• Monitoring service performance and outcomes

This means PHNs operate at the intersection of health needs assessment, commissioning, service coordination and system improvement.

Assessing Local Mental Health Needs

Effective role of PHNs in mental health starts with understanding the needs of the population. PHNs regularly assess their communities to identify health priorities, service gaps and opportunities for better coordination.

A comprehensive health needs assessment can combine population data, service utilisation, community consultation, consumer experiences and provider perspectives. Regional mental health data can also provide insight into differences in Medicare services, emergency department presentations, hospitalisations, prescriptions and community mental health contacts across PHN areas.

For PHNs, this evidence provides a foundation for deciding where investment and service development may have the greatest impact. It can also help identify underserved populations and inform more targeted mental health service planning.

Mental Health Planning and Commissioning

One of the most significant PHN responsibilities is commissioning services that respond to identified population needs. PHN mental health commissioning can involve defining priorities, engaging stakeholders, developing service models, selecting providers and establishing performance expectations.

Good commissioning connects local evidence with practical service responses. It considers not only what services are required but also workforce availability, provider capacity, accessibility, cultural responsiveness, integration and expected outcomes.

Current Australian Government guidance reinforces the importance of PHNs planning and commissioning mental health services within a broader stepped-care approach. For example, July 2026 guidance addresses low-intensity mental health services for people with mild or emerging conditions and outlines expectations around quality, safety, performance and consumer participation.

Supporting Primary and Community Mental Health Services

PHNs help strengthen the connection between general practice, allied health, community organisations and other parts of the mental health system. Community-based services are particularly important because they can provide accessible and localised support, with PHNs among the organisations involved in delivering or supporting these services.

Effective community mental health programs can improve pathways into care and provide alternatives or complements to hospital-based services. PHNs can support these programs through commissioning, provider engagement, capacity-building and performance monitoring.

This is especially important for people who experience barriers to traditional healthcare, including people in rural and regional areas, people experiencing socioeconomic disadvantage and communities with limited local workforce capacity.

Coordinating Integrated Mental Health Care

Mental health needs often extend beyond a single provider or service. PHNs can help coordinate relationships between primary care, community services, hospitals, specialist providers and social support organisations.

Integrated care can improve referral pathways, reduce duplication and help people move between services more effectively. The Australian Government identifies coordination and integration of local health services as one of the core functions of PHNs.

Current guidance also highlights multidisciplinary approaches for people with complex mental health needs in primary care, reinforcing the importance of collaboration between different healthcare professionals and services.

Addressing Different Mental Health Needs

role of PHNs in mental health needs to account for differences in population needs rather than relying on a single service model.

This can include:

• People with mild or emerging mental health concerns
• People experiencing severe or complex mental illness
• Children and young people
• Older people and residential aged care residents
• Aboriginal and Torres Strait Islander communities
• Culturally and linguistically diverse communities
• Rural and regional populations
• People experiencing disadvantage or multiple health and social needs

The latest PHN guidance includes specific areas such as low-intensity services, complex mental health needs and psychological treatment for people living in residential aged care.

Using Data and Evaluation to Improve Services

Commissioning should not end when a service begins. PHNs need reliable information to understand whether commissioned programs are reaching the intended population and achieving meaningful outcomes.

PHN monitoring and evaluation can consider service activity, accessibility, quality, consumer experience and outcomes. The Australian Government’s PHN commissioning guidance specifically recognises monitoring and evaluation as an important part of the commissioning process.

Using appropriate healthcare evaluation frameworks can help PHNs determine what is working, where improvements are needed and whether services should be continued, redesigned or scaled.

How Larter Supports PHNs in Mental Health Planning

Larter works with health organisations and commissioning bodies to strengthen local health systems through evidence-informed planning and practical implementation. Our work can support working with Primary Health Networks across areas such as health needs assessment, service planning, commissioning strategy, co-design, implementation and evaluation.

For PHNs developing or improving mental health services, this approach can connect community needs with realistic service models, stronger provider partnerships and measurable outcomes. Larter’s PHN mental health consulting can help organisations navigate complex planning and commissioning requirements while keeping local communities and service users at the centre.

Conclusion

The role of PHNs in mental health services extends beyond funding individual programs. PHNs help assess local needs, commission appropriate services, coordinate providers, build capacity and use evidence to improve the effectiveness of Australia’s primary and community mental health system.

As mental health needs become increasingly complex, effective PHN planning requires strong community engagement, integrated service models, data-informed commissioning and continuous evaluation. For organisations seeking to strengthen local mental health systems, these capabilities can support more accessible, coordinated and responsive care.

Frequently Asked Questions