National report - May 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 May 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 May 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 – May 2014

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

State/territory NHR funding NHR payments NHR funding
YTD
NHR payments
YTD
($) ($) ($) ($)
NSW 757,458,480 750,309,075 10,182,217,671 10,175,068,266
VIC 522,458,249 522,458,249 7,539,688,469 7,535,604,311
QLD 653,415,184 653,376,923 7,527,599,647 7,526,928,213
WA 303,003,286 303,003,286 3,972,713,447 3,970,573,579
SA 190,096,422 247,629,278 2,955,125,001 2,822,351,181
TAS 68,382,414 68,382,409 839,749,828 839,747,439
ACT 80,932,340 80,932,340 831,165,406 831,165,404
NT 57,445,809 57,444,291 634,183,245 634,182,557
Total 2,633,192,184 2,683,535,853 34,482,442,713 34,335,620,951

In February, March and May 2014, the Commonwealth provided States and Territories with additional public hospital funding of $66,255,366.05 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 all states and territories (except Western Australia) 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 – May 2014

This table shows NHR funding by the source of funds for each state and territory for May 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 357,034,128 398,636,483 1,787,869 757,458,480
VIC 295,025,421 227,432,828 0 522,458,249
QLD 238,542,509 414,872,675 0 653,415,184
WA 127,331,424 175,671,863 0 303,003,286
SA 83,997,766 106,098,656 0 190,096,422
TAS 22,777,769 45,604,645 0 68,382,414
ACT 25,189,763 45,902,000 9,840,577 80,932,340
NT 11,017,208 46,428,601 0 57,445,809
Total 1,160,915,988 1,460,647,751 11,628,446 2,633,192,184

See explanatory notes following table 2b.

Table 2b – NHR funding by funding source for each state and territory YTD – May 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 May 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 4,008,384,424 6,161,318,164 12,515,083 10,182,217,671
VIC 3,217,299,799 4,322,388,670 0 7,539,688,469
QLD 2,609,985,441 4,917,614,206 0 7,527,599,647
WA 1,404,195,423 2,568,518,023 0 3,972,713,447
SA 933,551,333 2,021,573,669 0 2,955,125,001
TAS 270,211,460 569,538,367 0 839,749,828
ACT 255,742,543 506,538,824 68,884,039 831,165,406
NT 123,470,692 510,712,552 0 634,183,245
Total 12,822,841,116 21,578,202,476 81,399,121 34,482,442,713

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 – May 2014

This table shows NHR funding for each state and territory by funding type and source for May 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 289,411,231 346,885,310 0 636,296,541
Block 58,998,095 41,747,749 0 100,745,844
Other 8,624,802 10,003,424 1,787,869 20,416,095
Total 357,034,128 398,636,483 1,787,869 757,458,480
VIC ABF 212,157,379 231,472,492 0 443,629,871
Block 76,201,363 -4,084,157 0 72,117,206
Other 6,666,679 44,494 0 6,711,173
Total 295,025,421 227,432,828 0 522,458,249
QLD ABF 202,425,202 367,413,570 0 569,838,772
Block 30,665,454 47,420,844 0 78,086,298
Other 5,451,853 38,261 0 5,490,114
Total 238,542,509 414,872,675 0 653,415,184
WA ABF 102,998,894 165,817,243 0 268,816,136
Block 21,367,603 9,854,620 0 31,222,222
Other 2,964,928 0 0 2,964,928
Total 127,331,424 175,671,863 0 303,003,286
SA ABF 70,131,110 80,000,000 0 150,131,110
Block 11,937,377 25,632,367 0 37,569,745
Other 1,929,278 466,289 0 2,395,567
Total 83,997,766 106,098,656 0 190,096,422
TAS ABF 17,969,753 22,308,186 0 40,277,939
Block 4,218,518 23,296,455 0 27,514,972
Other 589,498 5 0 589,503
Total 22,777,769 45,604,645 0 68,382,414
ACT ABF 22,387,680 40,436,131 0 62,823,811
Block 2,351,467 3,678,000 0 6,029,467
Other 450,617 1,787,869 9,840,577 12,079,063
Total 25,189,763 45,902,000 9,840,577 80,932,340
NT ABF 9,500,813 22,652,500 0 32,153,313
Block 1,236,801 23,774,583 0 25,011,384
Other 279,595 1,518 0 281,112
Total 11,017,208 46,428,601 0 57,445,809
Total ABF funding 926,982,062 1,276,985,431 0 2,203,967,492
Total Block funding 206,976,677 171,320,461 0 378,297,138
Total Other funding 26,957,250 12,341,859 11,628,446 50,927,554
Grand Total 1,160,915,988 1,460,647,751 11,628,446 2,633,192,184

See explanatory notes following table 3b.

Table 3b – NHR funding by funding type for each state and territory YTD – May 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 May 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 3,282,404,458 4,909,293,353 0 8,191,697,810
Block 630,751,801 1,181,281,452 0 1,812,033,252
Other 95,228,166 70,743,360 12,515,083 178,486,608
Total 4,008,384,424 6,161,318,164 12,515,083 10,182,217,671
VIC ABF 2,765,656,062 3,702,284,106 0 6,467,940,168
Block 377,759,673 618,935,981 0 996,695,654
Other 73,884,064 1,168,583 0 75,052,647
Total 3,217,299,799 4,322,388,670 0 7,539,688,469
QLD ABF 2,211,184,914 4,342,869,924 0 6,554,054,838
Block 338,654,512 574,072,849 0 912,727,361
Other 60,146,015 671,433 0 60,817,448
Total 2,609,985,441 4,917,614,206 0 7,527,599,647
WA ABF 1,134,384,144 2,010,235,775 0 3,144,619,920
Block 237,167,979 558,282,248 0 795,450,227
Other 32,643,300 0 0 32,643,300
Total 1,404,195,423 2,568,518,023 0 3,972,713,447
SA ABF 779,619,616 1,830,000,000 0 2,609,619,616
Block 132,478,789 188,345,075 0 320,823,863
Other 21,452,928 3,228,594 0 24,681,522
Total 933,551,333 2,021,573,669 0 2,955,125,001
TAS ABF 220,978,466 327,786,339 0 548,764,805
Block 42,667,976 241,749,640 0 284,417,616
Other 6,565,019 2,388 0 6,567,407
Total 270,211,460 569,538,367 0 839,749,828
ACT ABF 230,698,670 454,237,742 0 684,936,412
Block 20,087,392 39,786,000 0 59,873,392
Other 4,956,480 12,515,083 68,884,039 86,355,601
Total 255,742,543 506,538,824 68,884,039 831,165,406
NT ABF 106,968,695 249,177,500 0 356,146,195
Block 13,428,372 261,520,417 0 274,948,789
Other 3,073,625 14,636 0 3,088,261
Total 123,470,692 510,712,552 0 634,183,245
Total ABF funding 10,731,895,025 17,825,884,739 0 28,557,779,764
Total Block funding 1,792,996,494 3,663,973,660 0 5,456,970,155
Total Other funding 297,949,596 88,344,077 81,399,121 467,692,794
Grand Total 12,822,841,116 21,578,202,476 81,399,121 34,482,442,713

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 – May 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 198,491 1,972,782 2,171,273
VIC 139,191 1,528,557 1,680,407
QLD 108,162 1,185,010 1,292,217
WA 59,915 623,493 682,068
SA 41,444 493,842 538,164
TAS 10,165 104,821 114,078
ACT 10,478 115,256 125,570
NT 10,326 113,582 123,900
Total 578,172 6,137,342 6,727,676

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.