National report - August 2016

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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 2016.

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 2016-17 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 2016, see State or territory reports.

For the basis of the Commonwealth contribution to NHR funding, see Basis of Commonwealth NHR funding, 2016-17.

NHR funding and payments

Table 1 – NHR funding and payments for each state and territory – August 2016

This table shows NHR funding and payments for each state and territory for August 2016.

State/territory NHR funding NHR payments NHR funding
YTD
NHR payments
YTD
($) ($) ($) ($)
NSW 1,375,410,483 1,365,419,796 2,206,590,956 2,190,388,281
VIC 858,983,427 858,983,427 2,338,443,223 2,338,443,223
QLD 1,028,533,468 1,028,503,497 1,800,289,621 1,800,225,922
WA 493,434,530 493,434,530 953,854,940 953,854,929
SA 386,818,903 306,541,062 623,037,196 577,132,124
TAS 111,731,590 111,731,590 191,431,166 191,431,166
ACT 85,671,108 85,671,108 171,111,573 171,111,573
NT 91,457,062 91,455,879 181,411,051 181,408,690
Total 4,432,040,570 4,341,740,889 8,466,169,726 8,403,995,908

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 2016

This table shows NHR funding by the source of funds for each state and territory for August 2016.

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 486,235,051 887,575,432 1,600,000 1,375,410,483
VIC 406,650,902 452,332,525 0 858,983,427
QLD 350,510,597 678,022,871 0 1,028,533,468
WA 189,234,530 304,200,000 0 493,434,530
SA 104,847,041 281,971,861 0 386,818,903
TAS 30,858,475 80,873,115 0 111,731,590
ACT 29,649,108 48,222,000 7,800,000 85,671,108
NT 19,771,379 71,685,683 0 91,457,062
Total 1,617,757,083 2,804,883,487 9,400,000 4,432,040,570

See explanatory notes following table 2b.

Table 2b – NHR funding by funding source for each state and territory YTD – August 2016

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 2016.

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 959,929,180 1,243,461,776 3,200,000 2,206,590,956
VIC 779,585,232 1,558,857,991 0 2,338,443,223
QLD 654,654,999 1,145,634,622 0 1,800,289,621
WA 355,654,929 598,200,011 0 953,854,940
SA 210,502,650 412,534,545 0 623,037,196
TAS 61,716,949 129,714,217 0 191,431,166
ACT 58,051,573 97,460,000 15,600,000 171,111,573
NT 38,039,690 143,371,362 0 181,411,051
Total 3,118,135,202 5,329,234,524 18,800,000 8,466,169,726

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 2016

This table shows NHR funding for each state and territory by funding type and source for August 2016. 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 421,320,890 693,461,458 0 1,114,782,347
Block 54,993,779 193,895,069 0 248,888,848
Other 9,920,382 218,905 1,600,000 11,739,288
Total 486,235,051 887,575,432 1,600,000 1,375,410,483
VIC ABF 357,319,262 391,159,600 0 748,478,862
Block 41,563,444 60,953,536 0 102,516,980
Other 7,768,196 219,389 0 7,987,585
Total 406,650,902 452,332,525 0 858,983,427
QLD ABF 309,961,996 572,532,621 0 882,494,616
Block 34,335,458 105,460,280 0 139,795,738
Other 6,213,143 29,970 0 6,243,113
Total 350,510,597 678,022,871 0 1,028,533,468
WA ABF 163,022,147 259,200,000 0 422,222,147
Block 22,824,445 45,000,000 0 67,824,445
Other 3,387,938 0 0 3,387,938
Total 189,234,530 304,200,000 0 493,434,530
SA ABF 88,130,244 260,000,000 0 348,130,244
Block 14,525,736 21,800,000 0 36,325,736
Other 2,191,062 171,861 0 2,362,923
Total 104,847,041 281,971,861 0 386,818,903
TAS ABF 25,233,753 24,485,508 0 49,719,261
Block 4,964,032 56,387,607 0 61,351,639
Other 660,690 0 0 660,690
Total 30,858,475 80,873,115 0 111,731,590
ACT ABF 26,923,872 45,914,000 0 72,837,872
Block 2,217,240 2,308,000 0 4,525,240
Other 507,996 0 7,800,000 8,307,996
Total 29,649,108 48,222,000 7,800,000 85,671,108
NT ABF 18,104,557 24,526,583 0 42,631,140
Block 1,352,706 47,157,917 0 48,510,622
Other 314,116 1,183 0 315,299
Total 19,771,379 71,685,683 0 91,457,062
Total ABF funding 1,410,016,719 2,271,279,770 0 3,681,296,489
Total Block funding 176,776,841 532,962,408 0 709,739,249
Total Other funding 30,963,523 641,309 9,400,000 41,004,832
Grand Total 1,617,757,083 2,804,883,487 9,400,000 4,432,040,570

See explanatory notes following table 3b.

Table 3b – NHR funding by funding type for each state and territory YTD – August 2016

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 2016. 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 830,100,857 1,049,265,093 0 1,879,365,950
Block 109,987,559 193,895,069 0 303,882,628
Other 19,840,764 301,613 3,200,000 23,342,378
Total 959,929,180 1,243,461,776 3,200,000 2,206,590,956
VIC ABF 680,921,951 1,341,932,705 0 2,022,854,656
Block 83,126,888 216,595,716 0 299,722,604
Other 15,536,393 329,570 0 15,865,963
Total 779,585,232 1,558,857,991 0 2,338,443,223
QLD ABF 573,557,797 970,870,843 0 1,544,428,639
Block 68,670,917 174,700,080 0 243,370,997
Other 12,426,285 63,699 0 12,489,984
Total 654,654,999 1,145,634,622 0 1,800,289,621
WA ABF 303,230,164 424,200,000 0 727,430,164
Block 45,648,889 174,000,000 0 219,648,889
Other 6,775,876 11 0 6,775,887
Total 355,654,929 598,200,011 0 953,854,940
SA ABF 177,069,055 375,000,000 0 552,069,055
Block 29,051,471 37,122,232 0 66,173,703
Other 4,382,124 412,313 0 4,794,437
Total 210,502,650 412,534,545 0 623,037,196
TAS ABF 50,467,506 47,939,003 0 98,406,509
Block 9,928,064 81,775,214 0 91,703,278
Other 1,321,379 0 0 1,321,379
Total 61,716,949 129,714,217 0 191,431,166
ACT ABF 52,601,100 91,828,000 0 144,429,100
Block 4,434,481 5,632,000 0 10,066,481
Other 1,015,992 0 15,600,000 16,615,992
Total 58,051,573 97,460,000 15,600,000 171,111,573
NT ABF 34,706,045 49,053,167 0 83,759,212
Block 2,705,411 94,315,833 0 97,021,244
Other 628,233 2,362 0 630,595
Total 38,039,690 143,371,362 0 181,411,051
Total ABF funding 2,702,654,475 4,350,088,811 0 7,052,743,285
Total Block funding 353,553,681 978,036,144 0 1,331,589,826
Total Other funding 61,927,046 1,109,569 18,800,000 81,836,615
Grand Total 3,118,135,202 5,329,234,524 18,800,000 8,466,169,726

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 2016

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 2016-17
NSW 215,350 430,699 2,584,814
VIC 162,112 324,225 1,945,347
QLD 128,936 257,872 1,547,075
WA 72,542 140,118 807,655
SA 52,054 98,384 582,476
TAS 10,903 22,706 133,303
ACT 12,996 24,280 143,666
NT 11,633 23,850 137,544
Total 666,525 1,322,133 7,881,880

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.