National report - April 2014

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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 monthly and year-to-date (YTD) National Health Reform (NHR) funding and payments at an aggregated national level for April 2014.

Local hospital networks and National Health Reform

A local hospital network (LHN) is an organisation that provides public hospital services in accordance with the Agreement. An LHN 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 LHN.

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 hospital and health services.


Under the Agreement, LHNs receive funding in 2013-14 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: LHNs 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 National Health Reform 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 LHN, contact the Department of Health in the relevant state or territory to view the service agreement for that LHN.

Note: Amounts shown in the monthly reports do not include funding received by Victoria from New South Wales as contributions for Albury Wodonga Health.

Reference information

The financial information outlined in the following report is categorised as:

  • NHR funding – when the Commonwealth or state or territory government pays NHR funding into a state pool account or state managed fund.
  • NHR payments – when NHR funding that has been deposited into a state pool account or state managed fund is paid out of the state pool account by the Administrator, or is paid out of the state managed fund by the state or territory.

For the basis of state and territory NHR payments, see Basis for National Health Reform payments explanation in the relevant state or territory report for April 2014, see State or territory reports.

For the basis of the Commonwealth contribution to NHR funding, see Basis of Commonwealth NHR funding, 2013-14.

NHR funding and payments

Table 1 – NHR funding and payments for each state and territory – April 2014

This table shows NHR funding and payments for each state and territory for April 2014.

State/territory NHR funding NHR payments NHR funding
YTD
NHR payments
YTD
($) ($) ($) ($)
NSW 1,157,265,205 1,157,265,205 9,424,759,191 9,424,759,191
VIC 745,694,945 745,694,945 7,013,146,062 7,013,146,062
QLD 645,849,122 846,357,260 6,874,184,463 6,873,551,290
WA 331,003,080 331,003,079 3,669,710,160 3,667,570,293
SA 226,741,583 237,829,278 2,765,028,579 2,574,721,902
TAS 88,846,386 88,846,381 771,367,414 771,365,030
ACT 70,409,170 70,409,170 750,233,065 750,233,064
NT 57,595,011 57,593,496 576,737,436 576,724,318
Total 3,323,404,502 3,534,998,816 31,845,166,371 31,652,071,150

In February and March 2014, the Commonwealth provided States and Territories with additional public hospital funding of $66,255,366.05 (allocation of $183,371.57 to Northern Territory yet to be provided) under the 2013-14 Mid-Year Economic and Fiscal Outlook (MYEFO) funding measure: Public Hospital System - additional funding. This funding was provided to offset the downward adjustment to 2013-14 NHR funding applied at the MYEFO due to the application of updated NHR funding indexation parameters. A requirement of the provision of this funding was that the funding be provided to LHNs through the National Health Funding Pool and / or State Managed Fund.

The Administrator has been advised by New South Wales, Victoria, Queensland, South Australia, Tasmania and the Australian Capital Territory that their respective contributions to LHNs through the Pool and / or State Managed Fund between February and June 2014 will include this additional funding from the Commonwealth. Western Australia has advised that due to its legislative constraints an amount equivalent to the additional funding received from the Commonwealth will be paid to the LHNs outside the Pool between March and June 2014.

Differences between NHR funding and NHR payments for a state or territory can occur for several reasons, such as having funds remaining in its state pool account at the end of the month, drawing down on available funds from previous months, or having an overdraft in its state pool account at the end of the month.

NHR funding and payments shown in this table include GST where applicable.

Commonwealth and state or territory NHR funding components are detailed in the following tables.

For more information, see National Health Reform funding and payments.

NHR funding by funding source

Table 2a – NHR funding by funding source for each state and territory – April 2014

This table shows NHR funding by the source of funds for each state and territory for April 2014.

Sources of NHR funding are separated into Commonwealth funding, Own state or territory funding (where a state or territory provides its own funding) and Funding from other state or territory (where other states or territories contribute cross-border funding towards the cost of their residents being treated in the provider state or territory).

State/territory NHR funding by source
Commonwealth NHR funding Own state/territory NHR funding NHR funding
from other state/territory
Total NHR funding
($) ($) ($) ($)
NSW 357,842,909 798,230,383 1,191,913 1,157,265,205
VIC 293,608,618 452,086,327 0 745,694,945
QLD 238,323,016 407,526,105 0 645,849,122
WA 127,331,217 203,671,863 0 331,003,080
SA 84,044,968 142,696,615 0 226,741,583
TAS 22,666,907 66,179,479 0 88,846,386
ACT 25,098,263 38,750,522 6,560,385 70,409,170
NT 11,166,413 46,428,599 0 57,595,011
Total 1,160,082,311 2,155,569,894 7,752,297 3,323,404,502

* See explanatory notes following table 2b.

Table 2b – NHR funding by funding source for each state and territory YTD – April 2014

Following on from table 2a, this table shows year-to-date (YTD) NHR funding by the source of funds for each state and territory as at April 2014.

State/territory NHR funding by source
Commonwealth NHR funding
YTD
Own state/territory NHR funding
YTD
NHR funding
from other state/territory
YTD
Total NHR funding
YTD
($) ($) ($) ($)
NSW 3,651,350,296 5,762,681,682 10,727,214 9,424,759,191
VIC 2,922,274,378 4,090,871,684 0 7,013,146,062
QLD 2,371,442,932 4,502,741,531 0 6,874,184,463
WA 1,276,864,000 2,392,846,161 0 3,669,710,160
SA 849,553,566 1,915,475,013 0 2,765,028,579
TAS 247,433,691 523,933,722 0 771,367,414
ACT 230,552,779 460,636,824 59,043,462 750,233,065
NT 112,453,485 464,283,951 0 576,737,436
Total 11,661,925,128 20,113,470,568 69,770,675 31,845,166,371

NHR funding shown in these tables includes GST where applicable.

For more information, see National Health Reform funding and payments.

NHR funding by funding type

Table 3a – NHR funding by funding type for each state and territory – April 2014

This table shows NHR funding for each state and territory by funding type and source for April 2014. NHR funding can be activity-based funding (ABF), block funding or other funding, such as public health funding, cross-border, interest or overdeposits.

Sources of NHR funding are separated into Commonwealth funding, Own state or territory funding (where a state or territory provides its own funding) and Funding from other state or territory (where other states or territories contribute cross-border funding towards the cost of their residents being treated in the provider state or territory).

State/territory NHR funding type Commonwealth NHR funding Own state/territory NHR funding NHR funding
from other state/territory
Total NHR funding
($) ($) ($) ($)
NSW ABF 290,298,242 605,439,677 0 895,737,918
Block 58,919,865 186,022,747 0 244,942,612
Other 8,624,802 6,767,960 1,191,913 16,584,675
Total 357,842,909 798,230,383 1,191,913 1,157,265,205
VIC ABF 256,770,995 382,528,006 0 639,299,002
Block 30,170,943 69,481,049 0 99,651,993
Other 6,666,679 77,272 0 6,743,951
Total 293,608,618 452,086,327 0 745,694,945
QLD ABF 202,211,309 360,677,505 0 562,888,814
Block 30,659,854 46,770,479 0 77,430,333
Other 5,451,853 78,121 0 5,529,975
Total 238,323,016 407,526,105 0 645,849,122
WA ABF 102,998,683 193,817,243 0 296,815,926
Block 21,367,606 9,854,620 0 31,222,226
Other 2,964,928 0 0 2,964,928
Total 127,331,217 203,671,863 0 331,003,080
SA ABF 70,190,209 120,000,000 0 190,190,209
Block 11,925,481 22,247,576 0 34,173,057
Other 1,929,278 449,039 0 2,378,317
Total 84,044,968 142,696,615 0 226,741,583
TAS ABF 17,874,976 35,026,564 0 52,901,540
Block 4,202,433 31,152,910 0 35,355,344
Other 589,498 5 0 589,503
Total 22,666,907 66,179,479 0 88,846,386
ACT ABF 22,296,095 33,880,610 0 56,176,705
Block 2,351,552 3,678,000 0 6,029,552
Other 450,617 1,191,913 6,560,385 8,202,914
Total 25,098,263 38,750,522 6,560,385 70,409,170
NT ABF 9,651,702 22,652,500 0 32,304,202
Block 1,235,117 23,774,583 0 25,009,700
Other 279,595 1,515 0 281,110
Total 11,166,413 46,428,599 0 57,595,011
Total ABF funding 972,292,211 1,754,022,104 0 2,726,314,315
Total Block funding 160,832,851 392,981,965 0 553,814,815
Total Other funding 26,957,250 8,565,825 7,752,297 43,275,372
Grand Total 1,160,082,311 2,155,569,894 7,752,297 3,323,404,502

* See explanatory notes following table 3b.

Table 3b – NHR funding by funding type for each state and territory YTD – April 2014

Following on from table 3a, this table shows year-to-date (YTD) NHR funding for each state and territory by funding type and source for April 2014. NHR funding can be activity-based funding (ABF), block funding or other, such as public health funding, cross-border, interest or overdeposits.

State/territory NHR funding type Commonwealth NHR funding
YTD
Own state/territory NHR funding
YTD
NHR funding
from other state/territory
YTD
Total NHR funding
YTD
($) ($) ($) ($)
NSW ABF 2,992,993,226 4,562,408,043 0 7,555,401,270
Block 571,753,706 1,139,533,703 0 1,711,287,408
Other 86,603,364 60,739,936 10,727,214 158,070,513
Total 3,651,350,296 5,762,681,682 10,727,214 9,424,759,191
VIC ABF 2,553,498,683 3,470,811,615 0 6,024,310,298
Block 301,558,310 618,935,981 0 920,494,291
Other 67,217,385 1,124,089 0 68,341,474
Total 2,922,274,378 4,090,871,684 0 7,013,146,062
QLD ABF 2,008,759,712 3,975,456,354 0 5,984,216,066
Block 307,989,059 526,652,004 0 834,641,063
Other 54,694,161 633,173 0 55,327,334
Total 2,371,442,932 4,502,741,531 0 6,874,184,463
WA ABF 1,031,385,251 1,844,418,532 0 2,875,803,783
Block 215,800,376 548,427,628 0 764,228,004
Other 29,678,372 0 0 29,678,372
Total 1,276,864,000 2,392,846,161 0 3,669,710,160
SA ABF 709,488,506 1,750,000,000 0 2,459,488,506
Block 120,541,412 162,712,707 0 283,254,119
Other 19,523,649 2,762,305 0 22,285,955
Total 849,553,566 1,915,475,013 0 2,765,028,579
TAS ABF 203,008,713 305,478,153 0 508,486,866
Block 38,449,458 218,453,186 0 256,902,643
Other 5,975,521 2,384 0 5,977,904
Total 247,433,691 523,933,722 0 771,367,414
ACT ABF 208,310,990 413,801,611 0 622,112,601
Block 17,735,926 36,108,000 0 53,843,926
Other 4,505,863 10,727,214 59,043,462 74,276,539
Total 230,552,779 460,636,824 59,043,462 750,233,065
NT ABF 97,467,882 226,525,000 0 323,992,882
Block 12,191,572 237,745,833 0 249,937,405
Other 2,794,031 13,118 0 2,807,149
Total 112,453,485 464,283,951 0 576,737,436
Total ABF funding 9,804,912,963 16,548,899,308 0 26,353,812,271
Total Block funding 1,586,019,818 3,488,569,042 0 5,074,588,860
Total Other funding 270,992,347 76,002,218 69,770,675 416,765,240
Grand Total 11,661,925,128 20,113,470,568 69,770,675 31,845,166,371

ABF funding represents Acute admitted public, Acute admitted private, Non-admitted, Emergency department, Sub-acute, and Admitted mental health service categories, which are funded through the National Health Funding Pool and subsequently paid to local hospital networks.

Block funding represents Non-admitted mental health, Small rural hospitals, Teaching, training and research, and Other non-admitted categories, which are funded through state managed funds and subsequently paid to local hospital networks.

Other funding represents other funding sources which are transacted through the National Health Funding Pool, such as public health funding, cross-border, interest or overdeposits, and subsequently paid to state or territory health departments (with the exception of cross-border funding which can be paid to state or territory health departments or to local hospital networks).

NHR funding shown in these tables includes GST where applicable.

For more information, see National Health Reform funding and payments.

Estimated monthly, YTD and annual activity

States and territories provide service volume 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 provide estimated annual NWAU 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.

States and territories may also provide activity information relating to the delivery of other public hospital functions funded.

Table 4 – Estimated monthly, YTD and annual NWAU by each state and territory – April 2014

This table shows estimated hospital activity for each state and territory for activity-based funding services expressed as NWAU for the current month, year-to-date (YTD) and total estimated annual NWAU.

State/territory Estimated NWAU
delivered/funded in
current month
Estimated NWAU
delivered/funded YTD
Estimated annual
NWAU 2013-14
NSW 177,429 1,774,291 2,129,148
VIC 139,191 1,389,366 1,670,282
QLD 107,685 1,076,847 1,292,217
WA 54,959 563,577 682,068
SA 40,169 452,398 538,164
TAS 9,428 94,656 114,078
ACT 9,845 98,028 125,570
NT 10,326 103,256 123,900
Total 549,032 5,552,420 6,675,426

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, weighted for 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 delivered in the month.

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