Peter MacCallum Cancer Institute report, May 2013

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In this report

This report includes the following tables:

This report is issued by the Administrator of the National Health Funding Pool under section 240 of the National Health Reform Act 2011.

This report is prepared on a cash basis. It shows the National Health Reform (NHR) payments made by the Commonwealth and Victoria to Peter MacCallum Cancer Institute for May 2013 as part of the National Health Reform Agreement.

The Peter MacCallum Cancer Institute is a public hospital solely dedicated to cancer treatment, research and education located in East Melbourne.

Local hospital networks and National Health Reform

A local hospital network (LHN) is an organisation that provides public hospital services in accordance with the National Health Reform Agreement (the Agreement). A local hospital network can contain one or more hospitals, and is usually defined as a business group, geographical area or community. Every Australian public hospital is part of a local hospital network.

Note: The term 'local hospital network' is a national term. Some states and territories use their own local terminology to describe these networks, such as local health districts, health organisations, and public health or hospital services.

Under the Agreement, local hospital networks receive NHR funding for the following public hospital services:

  • All admitted and non-admitted services
  • All emergency department services provided by a recognised emergency department
  • Other outpatient, mental health, sub-acute services and other services that could reasonably be considered a public hospital service.

Note: Local hospital networks also receive funding from other sources, including the Commonwealth, states and territories, and third parties for the provision of other specific functions and services outside the scope of the Agreement, for example, dental services, primary care, home and community care, residential aged care and pharmaceuticals. For further information on total funding to a particular local hospital network, contact the Victorian Department of Health to view the service agreement for that local hospital network.

Reference information

The data in this report can be viewed in conjunction with information shown on the MyHospitals website (www.myhospitals.gov.au) (external link, opens in a new window) [http://www.myhospitals.gov.au] which provides information on hospitals throughout Australia.

The financial information outlined in the following report represents NHR payments - when NHR funding is deposited into a state pool account or state managed fund and is paid out of the state pool account by the Administrator, or is paid out of the state managed fund by the state.

For the basis of NHR payments, see the Basis for National Health Reform payments explanation in the Victorian report, May 2013.

For the basis of the Commonwealth contribution to NHR funding, see Basis of Commonwealth NHR funding 2012-13.

NHR payments to Peter MacCallum Cancer Institute

Table 1a – NHR payments – Peter MacCallum Cancer Institute, May 2013

This table shows the NHR payments made by the Commonwealth and Victoria to Peter MacCallum Cancer Institute by service category and contribution for May 2013.

The data is divided into service category and associated Commonwealth and state contribution for each amount. For further information on total funding to a particular local hospital network, contact the Victorian Department of Health to view the service agreement for that local hospital network.

Service category Total NHR payments
(ex GST)
GST Commonwealth
NHR contributions
(ex GST)
State/territory
NHR contributions
(ex GST)
($) ($) ($) ($)
Acute admitted - public * * * *
Acute admitted - private * * * *
Emergency department * * * *
Non-admitted * * * *
Total ABF payments (Pool) 2,650,000 0 2,827,217 -177,217
Small rural and metro hospitals * *
Mental health * *
Teaching, training and research * *
Sub-acute * *
Other * *
Total Block payments (SMF) 863,750 0
Total NHR Payments 3,513,750 0

* Victoria has advised it is unable to provide payment information by service category as its 2012-13 service agreements with local hospital networks do not set separate budgets at that level.
See explanatory notes following table 1b.

Table 1b – NHR payments YTD – Peter MacCallum Cancer Institute, May 2013

Following on from table 1a, this table shows year-to-date (YTD) NHR payments made by Victoria and the Commonwealth by service category and contribution to Peter MacCallum Cancer Institute as at May 2013.

Service category Total NHR payments YTD
(ex GST)
GST YTD Commonwealth
NHR contributions YTD
(ex GST)
State/territory
NHR contributions YTD
(ex GST)
($) ($) ($) ($)
Acute admitted - public * * * *
Acute admitted - private * * * *
Emergency department * * * *
Non-admitted * * * *
Total ABF payments (Pool) 65,264,179 0 31,930,347 33,333,832
Small rural and metro hospitals * *
Mental health * *
Teaching, training and research * *
Sub-acute * *
Other * *
Total Block payments (SMF) 8,663,376 0
Total NHR Payments 73,927,555 0

* Victoria has advised it is unable to provide payment information by service category as its 2012-13 service agreements with local hospital networks do not set separate budgets at that level.

Total ABF payments (Pool) represents NHR payments made by the Administrator from the state pool account to the local hospital network (LHN).

Total Block payments (SMF) represents NHR payments made by Victoria from the state managed fund (SMF) to the local hospital network.

Note: The grey shaded areas in the table above reflect that block payments made to local hospital networks cannot at this stage be identified by source of funding (state or Commonwealth) when paid from state managed funds.

Payments in these tables are GST exclusive. The majority of government funding to local hospital networks is not subject to GST. However in some cases, hospital funding to non-government entities does attract GST, for example, denominational hospitals, privately and commercially owned health facilities, or any other non-government third party provider of health services or related supplies.

For the basis of NHR payments, see the Basis for National Health Reform payments explanation in the Victorian report, May 2013.

Estimated monthly, YTD and annual NWAU

States and territories provide NHR funding amounts and service volumes as service estimates at the start of each financial year, and if required, can continue to refine these estimates during the course of the year. These estimates form the basis of monthly reporting of service volumes until actual service numbers become available. These estimates are expressed as National Weighted Activity Units (NWAU).

States and territories provided estimated annual NWAU for the Peter MacCallum Cancer Institute to the Administrator as a basis for determining the Commonwealth activity-based funding. Current month NWAU estimates accumulate through the year-to-date NWAU, to be equal to the annual NWAU at the end of the financial year.

Table 2 – Estimated monthly, YTD and annual NWAU – Peter MacCallum Cancer Institute, May 2013

This table shows the estimated activity for activity-based funding services expressed as NWAU for May 2013, the associated cumulative year-to-date (YTD) NWAU, and total estimated annual NWAU for Peter MacCallum Cancer Institute.

Activity based funding
(ABF) service category
Estimated NWAU funded in current month Estimated NWAU funded YTD Estimated annual
NWAU 2012-13
Acute admitted - public * * *
Acute admitted - private * * *
Emergency department * * *
Non-admitted * * *
Total 1,671 18,381 20,051

* Victoria has advised that service agreements with local hospital networks for 2012-13 do not set separate NHR service category budgets.

An NWAU is a measure of health service activity expressed as a common unit. It provides a way of comparing and valuing each public hospital service, whether they are admissions, emergency department presentations or outpatient episodes, by weighting them for their clinical complexity. The average hospital service is worth one NWAU - the most intensive and expensive activities are worth multiple NWAU, the simplest and least expensive are worth fractions of an NWAU.

Monthly NHR payments relate to the cash needs of public hospitals and do not necessarily reflect the volume of services to be delivered in the month.

For more information on the NWAU calculation, see Calculation of NWAU.

For the basis of NHR payments, see the Basis for National Health Reform payments explanation in the Victorian report, May 2013.