National report - June 2013

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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 June 2013.

Participation in the National Health Funding Pool by states and territories

In signing the National Health Reform Agreement (the Agreement), it was the intention of all states and territories that they would have the necessary legislation in place to enable them to participate in the National Health Funding Pool from 1 July 2012. Under the legislation envisaged by the Agreement, states and territories using the Pool are required to provide data on NHR funding, payments and services to be published by the Administrator of the National Health Funding Pool.

Only New South Wales, Western Australia and Tasmania had legislation in place to enable them to participate in the National Health Funding Pool from 1 July 2012. Legislation in other states and territories has come into effect progressively since then.

From March 2013, all states and territories had the necessary legislation in place, used the National Health Funding Pool to process NHR funding and payments, and provided the data required for the Administrator's monthly reports.

Prior to March 2013, where states or territories did not have their legislation in place to enable them to use the National Health Funding Pool, they instead received equivalent funding directly from the Commonwealth Treasury, and made payments directly to their recipients.

Hence the year-to-date data in this National report and reports for states and territories which did not use the National Health Funding Pool from 1 July 2012 to 28 February 2013 include both payments into and out of the Pool and ‘notional payments’ made outside the Pool arrangements. For further information, see the individual reports for these states and territories.

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. A local hospital network 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 local hospital network.

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, local hospital networks receive funding in 2012-13 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: Local hospital networks 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 local hospital network, contact the Department of Health in the relevant state or territory to view the service agreement for that local hospital network.

Note: Amounts shown in the monthly reports do not include the New South Wales contributions to Victoria 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 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.
  • Notional NHR payments – funds paid into and out of departmental bank accounts to local hospital networks that would have been transacted through the state pool account and/or state managed fund had NHR funding arrangements been in place. Notional payments are included in 2012-13 reporting to enable national comparability for month and year-to-date reporting periods.

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 June 2013, see State or territory reports.

For the basis of the Commonwealth contribution to NHR funding, see Basis of Commonwealth NHR funding, 2012-13.

NHR funding and payments

Table 1 – NHR funding and payments for each state and territory – June 2013

This table shows NHR funding and payments for each state and territory for June 2013.

State/territory NHR funding NHR payments NHR funding
YTD
NHR payments
YTD
($) ($) ($) ($)
NSW 957,951,241 957,951,241 11,004,866,836 11,004,866,836
VIC 575,838,490 575,838,489 7,559,910,397 7,559,910,396
QLD 598,347,585 599,660,681 7,790,507,472 7,790,409,592
WA 333,567,334 333,567,334 4,807,912,042 4,807,912,042
SA 176,851,728 197,152,276 2,775,518,139 2,757,713,742
TAS 79,731,959 79,752,177 781,087,610 781,087,611
ACT 40,978,272 40,978,272 641,619,313 641,619,313
NT 58,226,077 58,224,467 661,435,336 661,420,139
Total 2,821,492,687 2,843,124,938 36,022,857,146 36,004,939,671

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 – June 2013

This table shows NHR funding by the source of funds for each state and territory for June 2013.

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 346,384,206 587,440,243 24,126,792 957,951,241
VIC 264,860,883 247,691,701 63,285,906 575,838,490
QLD 213,682,138 384,665,447 0 598,347,585
WA 119,400,730 214,166,604 0 333,567,334
SA 83,640,264 93,211,464 0 176,851,728
TAS 23,646,243 56,085,716 0 79,731,959
ACT 20,645,972 20,332,300 0 40,978,272
NT 12,673,329 45,552,748 0 58,226,077
Total 1,084,933,765 1,649,146,223 87,412,698 2,821,492,686

* See explanatory notes following table 2b.

Table 2b – NHR funding by funding source for each state and territory YTD – June 2013

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 June 2013.

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 4,171,986,374 6,808,753,670 24,126,792 11,004,866,836
VIC 3,235,403,261 4,261,221,230 63,285,906 7,559,910,397
QLD 2,632,387,931 5,158,119,540 0 7,790,507,472
WA 1,398,146,109 3,409,765,933 0 4,807,912,042
SA 1,008,875,919 1,766,642,220 0 2,775,518,139
TAS 291,920,804 489,166,806 0 781,087,610
ACT 248,276,945 393,342,369 0 641,619,313
NT 143,779,766 517,655,571 0 661,435,336
Total 13,130,777,109 22,804,667,339 87,412,698 36,022,857,146

Cross-border funding arrangements between states and territories are yet to be put in place for state and territory contributions.

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 – June 2013

This table shows NHR funding for each state and territory by funding type and source for June 2013. 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 229,975,273 335,695,795 0 565,671,068
Block 108,042,538 198,614,146 0 306,656,684
Other 8,366,395 53,130,302 24,126,792 85,623,488
Total 346,384,206 587,440,243 24,126,792 957,951,241
VIC ABF 186,514,137 154,105,164 0 340,619,301
Block 72,093,390 93,333,142 0 165,426,532
Other 6,253,357 253,395 63,285,906 69,792,657
Total 264,860,883 247,691,701 63,285,906 575,838,490
QLD ABF 169,455,633 304,465,888 0 473,921,521
Block 39,161,061 80,160,404 0 119,321,465
Other 5,065,445 39,155 0 5,104,600
Total 213,682,138 384,665,447 0 598,347,585
WA ABF 87,455,638 191,567,653 0 279,023,291
Block 29,148,288 22,598,951 0 51,747,239
Other 2,796,805 0 0 2,796,805
Total 119,400,730 214,166,604 0 333,567,334
SA ABF 66,152,231 80,000,000 0 146,152,231
Block 15,527,002 12,806,024 0 28,333,026
Other 1,961,031 405,440 0 2,366,471
Total 83,640,264 93,211,464 0 176,851,728
TAS ABF 18,887,889 11,405,810 0 30,293,698
Block 4,202,440 34,456,654 0 38,659,094
Other 555,914 10,223,252 0 10,779,166
Total 23,646,243 56,085,716 0 79,731,959
ACT ABF 18,095,092 18,104,000 0 36,199,092
Block 2,155,232 2,228,300 0 4,383,532
Other 395,649 0 0 395,649
Total 20,645,972 20,332,300 0 40,978,272
NT ABF 8,412,356 21,742,799 0 30,155,155
Block 3,949,526 23,808,338 0 27,757,864
Other 311,448 1,610 0 313,058
Total 12,673,329 45,552,748 0 58,226,077
Total ABF funding 784,948,248 1,117,087,109 0 1,902,035,356
Total Block funding 274,279,476 468,005,960 0 742,285,436
Total Other funding 25,706,042 64,053,154 87,412,698 177,171,894
Grand Total 1,084,933,765 1,649,146,222 87,412,698 2,821,492,686

* See explanatory notes following table 3b.

Table 3b – NHR funding by funding type for each state and territory YTD – June 2013

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 June 2013. 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 2,771,508,895 4,609,383,026 0 7,380,891,921
Block 1,300,576,582 2,144,444,770 0 3,445,021,352
Other 99,900,898 54,925,874 24,126,792 178,953,563
Total 4,171,986,374 6,808,753,670 24,126,792 11,004,866,836
VIC ABF 2,279,067,375 3,073,519,677 0 5,352,587,052
Block 880,647,141 1,185,848,080 0 2,066,495,221
Other 75,688,744 1,853,473 63,285,906 140,828,123
Total 3,235,403,261 4,261,221,230 63,285,906 7,559,910,397
QLD ABF 2,086,953,472 4,046,878,588 0 6,133,832,060
Block 483,605,854 1,110,595,473 0 1,594,201,327
Other 61,828,605 645,479 0 62,474,085
Total 2,632,387,931 5,158,119,540 0 7,790,507,472
WA ABF 1,024,177,063 2,654,928,982 0 3,679,106,045
Block 341,316,381 754,836,951 0 1,096,153,332
Other 32,652,665 0 0 32,652,665
Total 1,398,146,109 3,409,765,933 0 4,807,912,042
SA ABF 798,101,896 1,519,989,326 0 2,318,091,222
Block 187,304,764 244,330,842 0 431,635,605
Other 23,469,260 2,322,053 0 25,791,312
Total 1,008,875,919 1,766,642,220 0 2,775,518,139
TAS ABF 233,205,250 236,837,689 0 470,042,939
Block 51,886,743 242,085,647 0 293,972,390
Other 6,828,812 10,243,470 0 17,072,282
Total 291,920,804 489,166,806 0 781,087,610
ACT ABF 226,866,226 350,053,862 0 576,920,088
Block 16,704,541 43,288,506 0 59,993,047
Other 4,706,178 0 0 4,706,178
Total 248,276,945 393,342,369 0 641,619,313
NT ABF 95,329,866 260,913,592 0 356,243,458
Block 44,922,494 256,726,782 0 301,649,275
Other 3,527,406 15,197 0 3,542,603
Total 143,779,766 517,655,571 0 661,435,336
Total ABF funding 9,515,210,043 16,752,504,742 0 26,267,714,785
Total Block funding 3,306,964,498 5,982,157,051 0 9,289,121,550
Total Other funding 308,602,568 70,005,546 87,412,698 466,020,811
Grand Total 13,130,777,109 22,804,667,339 87,412,698 36,022,857,146

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

Block funding represents Mental health, Small rural and metropolitan hospitals, Sub-acute, Teaching, training and research, and Other 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 NWAU

States and territories provide NHR funding amounts and service volumes as service 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.

Table 4 – Estimated monthly, YTD and annual NWAU by each state and territory – June 2013

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 2012-13
NSW 134,073 1,750,952 1,731,562
VIC 109,504 1,314,048 1,314,041
QLD 105,712 1,263,410 1,263,410
WA 52,504 624,035 618,967
SA 34,182 461,995 486,690
TAS 8,611 108,968 108,968
ACT 9,765 113,803 115,604
NT 28,572 95,064 93,194
Total 482,922 5,732,275 5,732,437

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.