National report - January 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 January 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 January 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 – January 2016

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

State/territory NHR funding NHR payments NHR funding
YTD
NHR payments
YTD
($) ($) ($) ($)
NSW 927,498,257 927,498,257 6,737,035,849 6,737,035,849
VIC 651,841,888 651,841,888 5,600,555,929 5,600,555,929
QLD 771,032,436 770,997,139 5,648,764,845 5,648,480,805
WA 453,645,877 453,645,877 2,941,636,729 2,941,636,710
SA 288,671,282 265,642,140 2,072,729,114 1,935,629,434
TAS 78,483,527 78,483,527 575,090,256 575,090,256
ACT 80,439,007 80,439,007 594,800,000 594,800,000
NT 76,615,858 76,614,511 535,270,313 535,260,974
Total 3,328,228,132 3,305,162,346 24,705,883,035 24,568,489,956

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 – January 2016

This table shows NHR funding by the source of funds for each state and territory for January 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 437,996,920 488,201,337 1,300,000 927,498,257
VIC 346,446,728 305,395,160 0 651,841,888
QLD 286,126,812 484,905,624 0 771,032,436
WA 152,366,750 301,279,126 0 453,645,877
SA 99,555,963 189,115,319 0 288,671,282
TAS 29,260,977 49,222,550 0 78,483,527
ACT 26,887,007 46,552,000 7,000,000 80,439,007
NT 14,519,678 62,096,181 0 76,615,858
Total 1,393,160,835 1,926,767,296 8,300,000 3,328,228,132

See explanatory notes following table 2b.

Table 2b – NHR funding by funding source for each state and territory YTD – January 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 January 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 3,136,575,531 3,572,160,318 28,300,000 6,737,035,849
VIC 2,442,190,437 3,158,365,492 0 5,600,555,929
QLD 1,977,066,647 3,646,098,198 25,600,000 5,648,764,845
WA 1,024,160,470 1,917,476,259 0 2,941,636,729
SA 721,479,206 1,345,649,908 5,600,000 2,072,729,114
TAS 217,349,507 357,740,748 0 575,090,256
ACT 196,660,000 349,140,000 49,000,000 594,800,000
NT 101,517,140 433,753,173 0 535,270,313
Total 9,816,998,938 14,780,384,097 108,500,000 24,705,883,035

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 – January 2016

This table shows NHR funding for each state and territory by funding type and source for January 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 375,957,767 451,702,357 0 827,660,124
Block 52,626,804 36,213,817 0 88,840,621
Other 9,412,349 285,162 1,300,000 10,997,512
Total 437,996,920 488,201,337 1,300,000 927,498,257
VIC ABF 297,406,577 267,841,047 0 565,247,624
Block 41,687,584 37,515,149 0 79,202,733
Other 7,352,567 38,964 0 7,391,531
Total 346,446,728 305,395,160 0 651,841,888
QLD ABF 248,029,544 419,809,021 0 667,838,565
Block 32,198,861 65,061,306 0 97,260,166
Other 5,898,408 35,297 0 5,933,705
Total 286,126,812 484,905,624 0 771,032,436
WA ABF 127,187,221 208,087,844 0 335,275,065
Block 22,015,827 93,191,282 0 115,207,109
Other 3,163,702 0 0 3,163,703
Total 152,366,750 301,279,126 0 453,645,877
SA ABF 83,353,603 173,000,000 0 256,353,603
Block 14,105,110 15,800,000 0 29,905,110
Other 2,097,250 315,319 0 2,412,569
Total 99,555,963 189,115,319 0 288,671,282
TAS ABF 23,881,622 26,335,818 0 50,217,440
Block 4,745,919 22,886,732 0 27,632,651
Other 633,436 0 0 633,436
Total 29,260,977 49,222,550 0 78,483,527
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 1,347 0 297,193
Total 14,519,678 62,096,181 0 76,615,858
Total ABF funding 1,193,150,420 1,614,530,671 0 2,807,681,091
Total Block funding 170,675,255 311,560,535 0 482,235,791
Total Other funding 29,335,160 676,090 8,300,000 38,311,250
Grand Total 1,393,160,835 1,926,767,296 8,300,000 3,328,228,132

See explanatory notes following table 3b.

Table 3b – NHR funding by funding type for each state and territory YTD – January 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 January 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 2,708,388,358 3,343,532,929 0 6,051,921,287
Block 361,865,252 227,013,321 0 588,878,573
Other 66,321,921 1,614,068 28,300,000 96,235,989
Total 3,136,575,531 3,572,160,318 28,300,000 6,737,035,849
VIC ABF 2,110,385,401 2,764,266,152 0 4,874,651,553
Block 279,992,488 393,479,422 0 673,471,910
Other 51,812,548 619,919 0 52,432,466
Total 2,442,190,437 3,158,365,492 0 5,600,555,929
QLD ABF 1,709,863,922 3,079,383,239 0 4,789,247,161
Block 225,392,024 523,030,919 0 748,422,943
Other 41,810,701 43,684,040 25,600,000 111,094,741
Total 1,977,066,647 3,646,098,198 25,600,000 5,648,764,845
WA ABF 846,098,480 1,669,678,267 0 2,515,776,747
Block 154,999,089 247,797,974 0 402,797,062
Other 23,062,901 19 0 23,062,920
Total 1,024,160,470 1,917,476,259 0 2,941,636,729
SA ABF 611,334,040 1,205,000,000 0 1,816,334,040
Block 95,390,167 138,702,723 0 234,092,890
Other 14,754,999 1,947,185 5,600,000 22,302,184
Total 721,479,206 1,345,649,908 5,600,000 2,072,729,114
TAS ABF 180,701,333 164,133,625 0 344,834,958
Block 32,183,741 193,607,123 0 225,790,865
Other 4,464,433 0 0 4,464,433
Total 217,349,507 357,740,748 0 575,090,256
ACT ABF 178,806,956 324,210,000 0 503,016,956
Block 14,446,130 24,930,000 0 39,376,130
Other 3,406,913 0 49,000,000 52,406,913
Total 196,660,000 349,140,000 49,000,000 594,800,000
NT ABF 91,379,598 171,686,083 0 263,065,681
Block 7,975,390 262,057,750 0 270,033,140
Other 2,162,153 9,340 0 2,171,493
Total 101,517,140 433,753,173 0 535,270,313
Total ABF funding 8,436,958,087 12,721,890,295 0 21,158,848,382
Total Block funding 1,172,244,281 2,010,619,232 0 3,182,863,513
Total Other funding 207,796,570 47,874,570 108,500,000 364,171,140
Grand Total 9,816,998,938 14,780,384,097 108,500,000 24,705,883,035

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 – January 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 1,451,014 2,487,446
VIC 156,940 1,098,581 1,883,280
QLD 120,663 831,461 1,447,961
WA 58,220 453,480 767,841
SA 46,691 336,807 578,208
TAS 10,176 78,520 129,113
ACT 10,232 79,008 136,447
NT 9,134 68,815 120,717
Total 619,343 4,397,686 7,551,012

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.