National report - February 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 February 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 2015-16 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 February 2016, see State or territory reports.

For the basis of the Commonwealth contribution to NHR funding, see Basis of Commonwealth NHR funding, 2015-16.

NHR funding and payments

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

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

State/territory NHR funding NHR payments NHR funding
YTD
NHR payments
YTD
($) ($) ($) ($)
NSW 902,108,659 902,108,659 7,639,144,508 7,639,144,508
VIC 652,714,469 652,714,469 6,253,270,398 6,253,270,398
QLD 1,021,637,853 785,483,223 6,670,402,698 6,433,964,028
WA 463,320,499 463,320,499 3,404,957,228 3,404,957,209
SA 271,877,246 277,442,140 2,344,606,360 2,213,071,574
TAS 73,264,209 73,264,209 648,354,464 648,354,464
ACT 80,439,007 80,439,007 675,239,007 675,239,007
NT 76,615,860 76,614,511 611,886,174 611,875,485
Total 3,541,977,802 3,311,386,717 28,247,860,837 27,879,876,673

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 – February 2016

This table shows NHR funding by the source of funds for each state and territory for February 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 437,996,920 462,811,739 1,300,000 902,108,659
VIC 346,446,728 306,267,741 0 652,714,469
QLD 286,126,812 735,511,041 0 1,021,637,853
WA 152,366,750 310,953,749 0 463,320,499
SA 99,555,963 172,321,283 0 271,877,246
TAS 29,260,977 44,003,231 0 73,264,209
ACT 26,887,007 46,552,000 7,000,000 80,439,007
NT 14,519,678 62,096,183 0 76,615,860
Total 1,393,160,835 2,140,516,967 8,300,000 3,541,977,802

See explanatory notes following table 2b.

Table 2b – NHR funding by funding source for each state and territory YTD – February 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 February 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 3,574,572,451 4,034,972,057 29,600,000 7,639,144,508
VIC 2,788,637,165 3,464,633,233 0 6,253,270,398
QLD 2,263,193,459 4,381,609,239 25,600,000 6,670,402,698
WA 1,176,527,220 2,228,430,008 0 3,404,957,228
SA 821,035,169 1,517,971,191 5,600,000 2,344,606,360
TAS 246,610,485 401,743,980 0 648,354,464
ACT 223,547,007 395,692,000 56,000,000 675,239,007
NT 116,036,818 495,849,356 0 611,886,174
Total 11,210,159,773 16,920,901,064 116,800,000 28,247,860,837

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 – February 2016

This table shows NHR funding for each state and territory by funding type and source for February 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 375,957,767 426,429,427 0 802,387,194
Block 52,626,804 35,990,546 0 88,617,350
Other 9,412,349 391,766 1,300,000 11,104,115
Total 437,996,920 462,811,739 1,300,000 902,108,659
VIC ABF 297,406,577 269,192,577 0 566,599,154
Block 41,687,584 36,971,035 0 78,658,619
Other 7,352,567 104,130 0 7,456,697
Total 346,446,728 306,267,741 0 652,714,469
QLD ABF 248,029,544 637,444,871 0 885,474,415
Block 32,198,861 98,030,953 0 130,229,814
Other 5,898,408 35,217 0 5,933,625
Total 286,126,812 735,511,041 0 1,021,637,853
WA ABF 127,187,221 211,796,895 0 338,984,116
Block 22,015,827 99,156,853 0 121,172,680
Other 3,163,702 0 0 3,163,702
Total 152,366,750 310,953,749 0 463,320,499
SA ABF 83,353,603 165,000,000 0 248,353,603
Block 14,105,110 7,000,000 0 21,105,110
Other 2,097,250 321,283 0 2,418,533
Total 99,555,963 172,321,283 0 271,877,246
TAS ABF 23,881,622 21,116,499 0 44,998,121
Block 4,745,919 22,886,732 0 27,632,651
Other 633,436 0 0 633,436
Total 29,260,977 44,003,231 0 73,264,209
ACT ABF 24,249,596 43,228,000 0 67,477,596
Block 2,155,809 3,324,000 0 5,479,809
Other 481,602 0 7,000,000 7,481,602
Total 26,887,007 46,552,000 7,000,000 80,439,007
NT ABF 13,084,491 24,526,583 0 37,611,074
Block 1,139,341 37,568,250 0 38,707,591
Other 295,846 1,349 0 297,195
Total 14,519,678 62,096,183 0 76,615,860
Total ABF funding 1,193,150,420 1,798,734,853 0 2,991,885,273
Total Block funding 170,675,255 340,928,369 0 511,603,624
Total Other funding 29,335,160 853,745 8,300,000 38,488,905
Grand Total 1,393,160,835 2,140,516,967 8,300,000 3,541,977,802

See explanatory notes following table 3b.

Table 3b – NHR funding by funding type for each state and territory YTD – February 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 February 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 3,084,346,124 3,769,962,356 0 6,854,308,481
Block 414,492,056 263,003,867 0 677,495,923
Other 75,734,271 2,005,834 29,600,000 107,340,104
Total 3,574,572,451 4,034,972,057 29,600,000 7,639,144,508
VIC ABF 2,407,791,978 3,033,458,729 0 5,441,250,707
Block 321,680,072 430,450,456 0 752,130,529
Other 59,165,115 724,048 0 59,889,163
Total 2,788,637,165 3,464,633,233 0 6,253,270,398
QLD ABF 1,957,893,466 3,716,828,110 0 5,674,721,576
Block 257,590,884 621,061,872 0 878,652,757
Other 47,709,109 43,719,257 25,600,000 117,028,366
Total 2,263,193,459 4,381,609,239 25,600,000 6,670,402,698
WA ABF 973,285,701 1,881,475,162 0 2,854,760,863
Block 177,014,916 346,954,827 0 523,969,743
Other 26,226,604 19 0 26,226,622
Total 1,176,527,220 2,228,430,008 0 3,404,957,228
SA ABF 694,687,643 1,370,000,000 0 2,064,687,643
Block 109,495,276 145,702,723 0 255,197,999
Other 16,852,249 2,268,468 5,600,000 24,720,717
Total 821,035,169 1,517,971,191 5,600,000 2,344,606,360
TAS ABF 204,582,955 185,250,124 0 389,833,079
Block 36,929,661 216,493,855 0 253,423,516
Other 5,097,869 0 0 5,097,869
Total 246,610,485 401,743,980 0 648,354,464
ACT ABF 203,056,552 367,438,000 0 570,494,552
Block 16,601,940 28,254,000 0 44,855,940
Other 3,888,515 0 56,000,000 59,888,515
Total 223,547,007 395,692,000 56,000,000 675,239,007
NT ABF 104,464,088 196,212,667 0 300,676,755
Block 9,114,731 299,626,000 0 308,740,731
Other 2,457,999 10,689 0 2,468,688
Total 116,036,818 495,849,356 0 611,886,174
Total ABF funding 9,630,108,507 14,520,625,148 0 24,150,733,655
Total Block funding 1,342,919,536 2,351,547,601 0 3,694,467,137
Total Other funding 237,131,730 48,728,315 116,800,000 402,660,045
Grand Total 11,210,159,773 16,920,901,064 116,800,000 28,247,860,837

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 – February 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 2015-16
NSW 207,287 1,658,301 2,487,446
VIC 156,940 1,255,522 1,883,281
QLD 120,663 952,125 1,447,961
WA 60,238 513,718 767,841
SA 50,807 387,614 578,208
TAS 9,656 88,176 129,113
ACT 11,412 95,005 136,447
NT 9,089 77,904 120,717
Total 626,093 5,028,365 7,551,014

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.