National report - August 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 August 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 2014-15 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 August 2014, see State or territory reports.

For the basis of the Commonwealth contribution to NHR funding, see Basis of Commonwealth NHR funding, 2014-15.

NHR funding and payments

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

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

State/territory NHR funding NHR payments NHR funding
YTD
NHR payments
YTD
($) ($) ($) ($)
NSW 816,551,360 816,551,360 2,116,929,764 2,116,929,764
VIC 603,338,170 603,338,170 1,872,666,692 1,872,666,692
QLD 658,234,269 658,196,921 1,309,496,537 1,309,418,734
WA 379,989,492 379,989,492 735,978,983 735,978,983
SA 307,868,099 254,000,000 680,290,011 512,570,456
TAS 79,203,153 79,203,153 147,058,661 147,058,660
ACT 68,702,447 68,702,447 159,690,894 159,690,894
NT 72,497,065 72,495,466 144,994,055 144,990,931
Total 2,986,384,055 2,932,477,009 7,167,105,597 6,999,305,114

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 – August 2014

This table shows NHR funding by the source of funds for each state and territory for August 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 405,414,086 411,137,274 0 816,551,360
VIC 316,425,983 286,912,187 0 603,338,170
QLD 251,452,852 406,781,417 0 658,234,269
WA 145,431,856 234,557,635 0 379,989,492
SA 89,140,266 218,727,833 0 307,868,099
TAS 26,279,578 52,923,575 0 79,203,153
ACT 24,130,447 44,572,000 0 68,702,447
NT 13,070,716 59,426,350 0 72,497,065
Total 1,271,345,784 1,715,038,271 0 2,986,384,055

See explanatory notes following table 2b.

Table 2b – NHR funding by funding source for each state and territory YTD – August 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 August 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 810,828,172 1,306,101,592 0 2,116,929,764
VIC 632,851,966 1,239,814,726 0 1,872,666,692
QLD 502,905,705 806,590,833 0 1,309,496,537
WA 290,863,712 445,115,271 0 735,978,983
SA 178,280,532 502,009,479 0 680,290,011
TAS 57,017,403 90,041,258 0 147,058,661
ACT 48,260,894 111,430,000 0 159,690,894
NT 26,141,431 118,852,623 0 144,994,055
Total 2,547,149,815 4,619,955,783 0 7,167,105,597

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 – August 2014

This table shows NHR funding for each state and territory by funding type and source for August 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 335,785,017 355,312,659 0 691,097,676
Block 60,602,425 55,710,991 0 116,313,416
Other 9,026,644 113,624 0 9,140,268
Total 405,414,086 411,137,274 0 816,551,360
VIC ABF 273,912,040 245,597,571 0 519,509,610
Block 35,477,396 41,077,961 0 76,555,358
Other 7,036,547 236,655 0 7,273,202
Total 316,425,983 286,912,187 0 603,338,170
QLD ABF 212,881,994 360,841,692 0 573,723,686
Block 32,857,533 45,902,377 0 78,759,910
Other 5,713,325 37,348 0 5,750,673
Total 251,452,852 406,781,417 0 658,234,269
WA ABF 119,690,596 186,438,875 0 306,129,471
Block 22,593,467 48,118,761 0 70,712,228
Other 3,147,793 0 0 3,147,793
Total 145,431,856 234,557,635 0 379,989,492
SA ABF 73,309,232 205,000,000 0 278,309,232
Block 13,810,168 13,500,000 0 27,310,168
Other 2,020,865 227,833 0 2,248,698
Total 89,140,266 218,727,833 0 307,868,099
TAS ABF 20,905,573 33,795,689 0 54,701,262
Block 4,759,987 19,127,886 0 23,887,873
Other 614,019 0 0 614,019
Total 26,279,578 52,923,575 0 79,203,153
ACT ABF 21,683,886 41,162,000 0 62,845,886
Block 1,979,783 3,410,000 0 5,389,783
Other 466,778 0 0 466,778
Total 24,130,447 44,572,000 0 68,702,447
NT ABF 11,385,571 23,742,083 0 35,127,654
Block 1,391,377 35,682,667 0 37,074,044
Other 293,767 1,600 0 295,367
Total 13,070,716 59,426,350 0 72,497,065
Total ABF funding 1,069,553,909 1,451,890,569 0 2,521,444,478
Total Block funding 173,472,138 262,530,642 0 436,002,780
Total Other funding 28,319,738 617,060 0 28,936,797
Grand Total 1,271,345,784 1,715,038,271 0 2,986,384,055

See explanatory notes following table 3b.

Table 3b – NHR funding by funding type for each state and territory YTD – August 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 August 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 671,570,033 883,738,079 0 1,555,308,112
Block 121,204,850 422,158,900 0 543,363,750
Other 18,053,288 204,614 0 18,257,902
Total 810,828,172 1,306,101,592 0 2,116,929,764
VIC ABF 547,824,080 1,083,873,001 0 1,631,697,080
Block 70,954,793 155,705,001 0 226,659,794
Other 14,073,094 236,724 0 14,309,818
Total 632,851,966 1,239,814,726 0 1,872,666,692
QLD ABF 425,763,988 714,708,277 0 1,140,472,265
Block 65,715,067 91,804,752 0 157,519,819
Other 11,426,650 77,803 0 11,504,454
Total 502,905,705 806,590,833 0 1,309,496,537
WA ABF 239,381,192 382,877,750 0 622,258,942
Block 45,186,934 62,237,521 0 107,424,456
Other 6,295,586 0 0 6,295,586
Total 290,863,712 445,115,271 0 735,978,983
SA ABF 146,618,465 475,000,000 0 621,618,465
Block 27,620,337 26,700,000 0 54,320,337
Other 4,041,730 309,479 0 4,351,210
Total 178,280,532 502,009,479 0 680,290,011
TAS ABF 46,269,392 60,417,204 0 106,686,596
Block 9,519,974 29,624,053 0 39,144,027
Other 1,228,037 1 0 1,228,039
Total 57,017,403 90,041,258 0 147,058,661
ACT ABF 43,367,772 102,905,000 0 146,272,772
Block 3,959,566 8,525,000 0 12,484,566
Other 933,555 0 0 933,555
Total 48,260,894 111,430,000 0 159,690,894
NT ABF 22,771,142 47,484,167 0 70,255,309
Block 2,782,755 71,365,333 0 74,148,088
Other 587,535 3,123 0 590,658
Total 26,141,431 118,852,623 0 144,994,055
Total ABF funding 2,143,566,064 3,751,003,476 0 5,894,569,540
Total Block funding 346,944,275 868,120,561 0 1,215,064,836
Total Other funding 56,639,476 831,745 0 57,471,221
Grand Total 2,547,149,815 4,619,955,783 0 7,167,105,597

ABF funding represents Acute admitted, 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 – August 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 2014-15
NSW 192,343 384,686 2,308,114
VIC 148,267 296,533 1,779,200
QLD 113,476 226,952 1,351,985
WA 61,633 122,031 749,831
SA 43,608 88,162 535,696
TAS 10,652 21,641 123,487
ACT 10,687 21,658 128,248
NT 9,507 18,625 118,336
Total 590,174 1,180,288 7,094,898

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.