National report - June 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 June 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 2013-14 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 June 2014, see State or territory reports.

For the basis of the Commonwealth contribution to NHR funding, see Basis of Commonwealth NHR funding, 2013-14.

NHR funding and payments

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

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

State/territory NHR funding NHR payments NHR funding
YTD
NHR payments
YTD
($) ($) ($) ($)
NSW 626,446,310 633,595,714 10,808,663,980 10,808,663,980
VIC 425,958,337 425,958,337 7,965,646,806 7,961,562,649
QLD 682,732,575 683,404,008 8,210,332,222 8,210,332,221
WA 314,523,161 314,523,161 4,287,236,607 4,285,096,740
SA 139,467,404 281,632,307 3,094,592,405 3,103,983,488
TAS 88,382,486 88,384,874 928,132,314 928,132,314
ACT 75,177,649 75,177,649 906,343,054 906,343,053
NT 161,815,831 161,814,309 795,999,076 795,996,867
Total 2,514,503,753 2,664,490,360 36,996,946,465 37,000,111,311

Between February and June 2014, the Commonwealth provided States and Territories with additional public hospital funding of $173,867,944.74 under the funding measure: National Partnership on public hospital system - additional funding. This funding was provided to offset the downward adjustments to 2013-14 NHR funding applied at the 2013-14 Mid-Year Economic and Fiscal Outlook (MYEFO), the 2014-15 Budget, and the 2013-14 Final Budget Outcome (FBO), due to the application of updated NHR funding indexation parameters. A requirement of the provision of this funding was that it is passed on in full through the National Health Funding Pool and / or State Managed Fund to LHNs for activity based and block funding, and state and territory health departments for public health funding.

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 2014

This table shows NHR funding by the source of funds for each state and territory for June 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 334,464,412 290,194,029 1,787,869 626,446,310
VIC 265,875,982 160,082,355 0 425,958,337
QLD 204,982,042 477,750,533 0 682,732,575
WA 114,204,994 200,318,167 0 314,523,161
SA 74,352,181 65,115,223 0 139,467,404
TAS 22,235,834 66,146,652 0 88,382,486
ACT 19,438,072 45,899,000 9,840,577 75,177,649
NT 11,119,226 150,696,605 0 161,815,831
Total 1,046,672,743 1,456,202,564 11,628,446 2,514,503,753

See explanatory notes following table 2b.

Table 2b – NHR funding by funding source for each state and territory YTD – June 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 June 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 4,342,848,836 6,451,512,193 14,302,952 10,808,663,980
VIC 3,483,175,781 4,482,471,025 0 7,965,646,806
QLD 2,814,967,483 5,395,364,739 0 8,210,332,222
WA 1,518,400,417 2,768,836,190 0 4,287,236,607
SA 1,007,903,514 2,086,688,892 0 3,094,592,405
TAS 292,447,294 635,685,019 0 928,132,314
ACT 275,180,614 552,437,824 78,724,616 906,343,054
NT 134,589,919 661,409,158 0 795,999,076
Total 13,869,513,859 23,034,405,040 93,027,567 36,996,946,465

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 2014

This table shows NHR funding for each state and territory by funding type and source for June 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 272,654,638 250,728,747 0 523,383,385
Block 53,887,632 29,388,977 0 83,276,609
Other 7,922,141 10,076,305 1,787,869 19,786,315
Total 334,464,412 290,194,029 1,787,869 626,446,310
VIC ABF 186,705,096 168,142,362 0 354,847,458
Block 73,020,984 -8,191,656 0 64,829,328
Other 6,149,903 131,649 0 6,281,551
Total 265,875,982 160,082,355 0 425,958,337
QLD ABF 173,636,759 426,032,488 0 599,669,247
Block 26,599,766 51,679,207 0 78,278,974
Other 4,745,517 38,837 0 4,784,354
Total 204,982,042 477,750,533 0 682,732,575
WA ABF 92,510,748 159,817,243 0 252,327,991
Block 19,040,659 40,500,924 0 59,541,583
Other 2,653,587 0 0 2,653,587
Total 114,204,994 200,318,167 0 314,523,161
SA ABF 62,051,767 18,158,644 0 80,210,411
Block 10,587,011 46,566,380 0 57,153,391
Other 1,713,403 390,199 0 2,103,602
Total 74,352,181 65,115,223 0 139,467,404
TAS ABF 17,918,955 22,308,186 0 40,227,141
Block 3,792,157 43,838,461 0 47,630,619
Other 524,722 5 0 524,727
Total 22,235,834 66,146,652 0 88,382,486
ACT ABF 17,101,861 38,055,307 0 55,157,168
Block 1,976,573 6,055,824 0 8,032,397
Other 359,638 1,787,869 9,840,577 11,988,084
Total 19,438,072 45,899,000 9,840,577 75,177,649
NT ABF 9,659,056 22,652,500 0 32,311,556
Block 1,187,798 128,042,583 0 129,230,381
Other 272,373 1,522 0 273,894
Total 11,119,226 150,696,605 0 161,815,831
Total ABF funding 832,238,879 1,105,895,477 0 1,938,134,356
Total Block funding 190,092,581 337,880,701 0 527,973,282
Total Other funding 24,341,283 12,426,386 11,628,446 48,396,115
Grand Total 1,046,672,743 1,456,202,564 11,628,446 2,514,503,753

See explanatory notes following table 3b.

Table 3b – NHR funding by funding type for each state and territory YTD – June 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 June 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 3,555,059,096 5,160,022,100 0 8,715,081,196
Block 684,639,433 1,210,670,429 0 1,895,309,862
Other 103,150,307 80,819,665 14,302,952 198,272,923
Total 4,342,848,836 6,451,512,193 14,302,952 10,808,663,980
VIC ABF 2,952,361,157 3,870,426,469 0 6,822,787,626
Block 450,780,657 610,744,325 0 1,061,524,982
Other 80,033,967 1,300,232 0 81,334,198
Total 3,483,175,781 4,482,471,025 0 7,965,646,806
QLD ABF 2,384,821,673 4,768,902,412 0 7,153,724,085
Block 365,254,279 625,752,056 0 991,006,335
Other 64,891,531 710,271 0 65,601,802
Total 2,814,967,483 5,395,364,739 0 8,210,332,222
WA ABF 1,226,894,892 2,170,053,018 0 3,396,947,910
Block 256,208,638 598,783,172 0 854,991,810
Other 35,296,887 0 0 35,296,887
Total 1,518,400,417 2,768,836,190 0 4,287,236,607
SA ABF 841,671,383 1,848,158,644 0 2,689,830,027
Block 143,065,800 234,911,455 0 377,977,255
Other 23,166,331 3,618,793 0 26,785,124
Total 1,007,903,514 2,086,688,892 0 3,094,592,405
TAS ABF 238,897,421 350,094,525 0 588,991,945
Block 46,460,133 285,588,101 0 332,048,235
Other 7,089,741 2,393 0 7,092,134
Total 292,447,294 635,685,019 0 928,132,314
ACT ABF 247,800,531 492,293,048 0 740,093,580
Block 22,063,965 45,841,824 0 67,905,789
Other 5,316,118 14,302,952 78,724,616 98,343,685
Total 275,180,614 552,437,824 78,724,616 906,343,054
NT ABF 116,627,750 271,830,000 0 388,457,750
Block 14,616,170 389,563,000 0 404,179,170
Other 3,345,998 16,158 0 3,362,156
Total 134,589,919 661,409,158 0 795,999,076
Total ABF funding 11,564,133,904 18,931,780,216 0 30,495,914,120
Total Block funding 1,983,089,075 4,001,854,361 0 5,984,943,436
Total Other funding 322,290,880 100,770,462 93,027,567 516,088,909
Grand Total 13,869,513,859 23,034,405,040 93,027,567 36,996,946,465

ABF funding represents Acute admitted public, Acute admitted private, 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 – June 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 2013-14
NSW 170,523 2,143,305 2,143,305
VIC 139,181 1,667,738 1,689,796
QLD 108,162 1,293,172 1,297,949
WA 58,575 682,068 682,068
SA 44,358 538,200 538,164
TAS 9,257 114,078 114,078
ACT 10,542 126,297 125,570
NT 10,326 123,908 116,016
Total 550,924 6,688,766 6,706,945

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.