National report - March 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 March 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 March 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 – March 2014

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

State/territory NHR funding NHR payments NHR funding
YTD
NHR payments
YTD
($) ($) ($) ($)
NSW 916,005,245 916,005,245 8,267,493,986 8,257,958,685
VIC 557,508,705 557,508,705 6,267,451,117 6,267,451,117
QLD 852,190,310 651,539,796 6,228,335,342 6,027,194,030
WA 290,003,854 290,003,854 3,338,707,081 3,336,567,214
SA 327,908,688 306,429,278 2,538,286,996 2,336,892,624
TAS 64,126,389 64,126,385 682,521,027 682,518,648
ACT 133,018,563 133,018,563 679,823,895 679,823,894
NT 57,596,615 57,595,103 519,142,425 519,144,770
Total 3,198,358,370 2,976,226,930 28,521,761,869 28,107,550,982

In February and March 2014, the Commonwealth provided States and Territories with additional public hospital funding of $66,255,366.05 (allocation of $183,371.57 to Northern Territory yet to be provided) under the 2013-14 Mid-Year Economic and Fiscal Outlook (MYEFO) funding measure: Public Hospital System - additional funding. This funding was provided to offset the downward adjustment to 2013-14 NHR funding applied at the MYEFO due to the application of updated NHR funding indexation parameters. A requirement of the provision of this funding was that the funding be provided to LHNs through the National Health Funding Pool and / or State Managed Fund.

The Administrator has been advised by New South Wales, Queensland, Tasmania and Australian Capital Territory that their respective contributions to LHNs through the Pool and / or State Managed Fund between February and June 2014 will include this additional funding from the Commonwealth. Western Australia has advised that due to its legislative constraints an amount equivalent to the additional funding received from the Commonwealth will be paid to the LHNs outside the Pool between March and June 2014.

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 – March 2014

This table shows NHR funding by the source of funds for each state and territory for March 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 357,880,496 548,589,447 9,535,301 916,005,245
VIC 293,612,606 263,896,099 0 557,508,705
QLD 238,279,220 613,911,090 0 852,190,310
WA 127,331,215 162,672,640 0 290,003,854
SA 84,044,930 243,863,758 0 327,908,688
TAS 22,667,641 41,458,748 0 64,126,389
ACT 25,098,184 55,437,302 52,483,077 133,018,563
NT 11,168,020 46,428,596 0 57,596,615
Total 1,160,082,311 1,976,257,680 62,018,378 3,198,358,370

* See explanatory notes following table 2b.

Table 2b – NHR funding by funding source for each state and territory YTD – March 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 March 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 3,293,507,387 4,964,451,298 9,535,301 8,267,493,986
VIC 2,628,665,761 3,638,785,357 0 6,267,451,117
QLD 2,133,119,916 4,095,215,426 0 6,228,335,342
WA 1,149,532,783 2,189,174,298 0 3,338,707,081
SA 765,508,598 1,772,778,398 0 2,538,286,996
TAS 224,766,784 457,754,243 0 682,521,027
ACT 205,454,516 421,886,302 52,483,077 679,823,895
NT 101,287,072 417,855,353 0 519,142,425
Total 10,501,842,816 17,957,900,674 62,018,378 28,521,761,869

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 – March 2014

This table shows NHR funding for each state and territory by funding type and source for March 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 290,329,797 415,613,993 0 705,943,790
Block 58,925,898 80,296,486 0 139,222,384
Other 8,624,802 52,678,968 9,535,301 70,839,071
Total 357,880,496 548,589,447 9,535,301 916,005,245
VIC ABF 256,774,562 218,872,266 0 475,646,828
Block 30,171,365 44,933,619 0 75,104,984
Other 6,666,679 90,214 0 6,756,893
Total 293,612,606 263,896,099 0 557,508,705
QLD ABF 202,563,639 543,815,767 0 746,379,406
Block 30,263,728 70,031,069 0 100,294,797
Other 5,451,853 64,254 0 5,516,107
Total 238,279,220 613,911,090 0 852,190,310
WA ABF 102,998,682 152,818,020 0 255,816,701
Block 21,367,605 9,854,620 0 31,222,225
Other 2,964,928 0 0 2,964,928
Total 127,331,215 162,672,640 0 290,003,854
SA ABF 70,190,176 210,000,000 0 280,190,176
Block 11,925,475 33,500,000 0 45,425,475
Other 1,929,278 363,758 0 2,293,037
Total 84,044,930 243,863,758 0 327,908,688
TAS ABF 17,875,593 22,308,186 0 40,183,779
Block 4,202,550 19,150,558 0 23,353,108
Other 589,498 4 0 589,502
Total 22,667,641 41,458,748 0 64,126,389
ACT ABF 22,296,022 42,224,001 0 64,520,023
Block 2,351,545 3,678,000 0 6,029,545
Other 450,617 9,535,301 52,483,077 62,468,995
Total 25,098,184 55,437,302 52,483,077 133,018,563
NT ABF 9,653,131 22,652,500 0 32,305,631
Block 1,235,294 23,774,583 0 25,009,878
Other 279,595 1,512 0 281,107
Total 11,168,020 46,428,596 0 57,596,615
Total ABF funding 972,681,601 1,628,304,733 0 2,600,986,334
Total Block funding 160,443,461 285,218,935 0 445,662,396
Total Other funding 26,957,250 62,734,012 62,018,378 151,709,640
Grand Total 1,160,082,311 1,976,257,680 62,018,378 3,198,358,370

* See explanatory notes following table 3b.

Table 3b – NHR funding by funding type for each state and territory YTD – March 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 March 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 2,702,694,985 3,956,968,367 0 6,659,663,351
Block 512,833,840 953,510,956 0 1,466,344,796
Other 77,978,562 53,971,975 9,535,301 141,485,838
Total 3,293,507,387 4,964,451,298 9,535,301 8,267,493,986
VIC ABF 2,296,727,688 3,088,283,608 0 5,385,011,296
Block 271,387,367 549,454,931 0 820,842,298
Other 60,550,706 1,046,817 0 61,597,523
Total 2,628,665,761 3,638,785,357 0 6,267,451,117
QLD ABF 1,806,548,403 3,614,778,850 0 5,421,327,253
Block 277,329,205 479,881,525 0 757,210,730
Other 49,242,308 555,051 0 49,797,359
Total 2,133,119,916 4,095,215,426 0 6,228,335,342
WA ABF 928,386,568 1,650,601,289 0 2,578,987,857
Block 194,432,771 538,573,008 0 733,005,779
Other 26,713,445 0 0 26,713,445
Total 1,149,532,783 2,189,174,298 0 3,338,707,081
SA ABF 639,298,297 1,630,000,000 0 2,269,298,297
Block 108,615,931 140,465,131 0 249,081,062
Other 17,594,371 2,313,267 0 19,907,638
Total 765,508,598 1,772,778,398 0 2,538,286,996
TAS ABF 185,133,737 270,451,589 0 455,585,326
Block 34,247,025 187,300,275 0 221,547,300
Other 5,386,023 2,379 0 5,388,401
Total 224,766,784 457,754,243 0 682,521,027
ACT ABF 186,014,895 379,921,001 0 565,935,896
Block 15,384,374 32,430,000 0 47,814,374
Other 4,055,247 9,535,301 52,483,077 66,073,625
Total 205,454,516 421,886,302 52,483,077 679,823,895
NT ABF 87,816,181 203,872,500 0 291,688,681
Block 10,956,455 213,971,250 0 224,927,705
Other 2,514,436 11,603 0 2,526,039
Total 101,287,072 417,855,353 0 519,142,425
Total ABF funding 8,832,620,752 14,794,877,204 0 23,627,497,956
Total Block funding 1,425,186,967 3,095,587,077 0 4,520,774,044
Total Other funding 244,035,097 67,436,393 62,018,378 373,489,868
Grand Total 10,501,842,816 17,957,900,674 62,018,378 28,521,761,869

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 – March 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 177,429 1,596,862 2,129,148
VIC 139,191 1,250,175 1,670,282
QLD 107,685 969,163 1,296,974
WA 60,777 508,618 682,068
SA 51,588 412,230 538,164
TAS 9,675 85,228 114,078
ACT 9,780 88,018 125,570
NT 10,326 92,930 123,900
Total 566,451 5,003,223 6,680,184

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.