National report - October 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 October 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 2014-15 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 October 2014, see State or territory reports.

For the basis of the Commonwealth contribution to NHR funding, see Basis of Commonwealth NHR funding, 2014-15.

NHR funding and payments

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

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

State/territory NHR funding NHR payments NHR funding
YTD
NHR payments
YTD
($) ($) ($) ($)
NSW 828,986,024 828,986,024 4,023,730,951 4,023,730,951
VIC 662,980,396 662,980,396 3,311,934,507 3,311,934,507
QLD 766,187,254 766,132,275 3,087,649,053 3,087,478,387
WA 370,763,035 370,763,035 1,479,755,054 1,479,755,054
SA 155,261,484 266,389,667 1,219,507,067 1,120,580,988
TAS 69,300,393 69,300,393 307,169,855 307,169,853
ACT 68,702,447 68,702,447 297,095,788 297,095,788
NT 72,497,070 72,495,466 289,988,194 289,981,863
Total 2,994,678,104 3,105,749,703 14,016,830,468 13,917,727,391

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 – October 2014

This table shows NHR funding by the source of funds for each state and territory for October 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 405,414,086 423,571,939 0 828,986,024
VIC 316,425,983 346,554,413 0 662,980,396
QLD 253,888,359 512,298,896 0 766,187,254
WA 145,431,856 225,331,179 0 370,763,035
SA 89,140,266 66,121,218 0 155,261,484
TAS 26,279,578 43,020,814 0 69,300,393
ACT 24,130,447 44,572,000 0 68,702,447
NT 13,070,716 59,426,355 0 72,497,070
Total 1,273,781,291 1,720,896,814 0 2,994,678,104

See explanatory notes following table 2b.

Table 2b – NHR funding by funding source for each state and territory YTD – October 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 October 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 1,621,656,343 2,402,074,608 0 4,023,730,951
VIC 1,265,703,931 2,046,230,576 0 3,311,934,507
QLD 1,008,246,916 2,079,402,137 0 3,087,649,053
WA 581,727,424 898,027,630 0 1,479,755,054
SA 356,561,064 862,946,003 0 1,219,507,067
TAS 109,576,560 197,593,294 0 307,169,855
ACT 96,521,788 200,574,000 0 297,095,788
NT 52,282,863 237,705,331 0 289,988,194
Total 5,092,276,890 8,924,553,579 0 14,016,830,468

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 – October 2014

This table shows NHR funding for each state and territory by funding type and source for October 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 335,785,017 363,965,061 0 699,750,077
Block 60,602,425 59,442,206 0 120,044,631
Other 9,026,644 164,672 0 9,191,316
Total 405,414,086 423,571,939 0 828,986,024
VIC ABF 273,912,040 303,537,997 0 577,450,037
Block 35,477,396 42,953,774 0 78,431,171
Other 7,036,547 62,642 0 7,099,189
Total 316,425,983 346,554,413 0 662,980,396
QLD ABF 215,317,500 428,334,093 0 643,651,593
Block 32,857,533 83,909,823 0 116,767,357
Other 5,713,325 54,980 0 5,768,305
Total 253,888,359 512,298,896 0 766,187,254
WA ABF 119,690,596 178,212,419 0 297,903,015
Block 22,593,467 47,118,761 0 69,712,228
Other 3,147,793 0 0 3,147,793
Total 145,431,856 225,331,179 0 370,763,035
SA ABF 73,309,232 50,000,000 0 123,309,232
Block 13,810,168 15,742,592 0 29,552,760
Other 2,020,865 378,626 0 2,399,491
Total 89,140,266 66,121,218 0 155,261,484
TAS ABF 20,905,573 25,420,413 0 46,325,986
Block 4,759,987 17,600,401 0 22,360,388
Other 614,019 0 0 614,019
Total 26,279,578 43,020,814 0 69,300,393
ACT ABF 21,683,886 42,114,000 0 63,797,886
Block 1,979,783 2,458,000 0 4,437,783
Other 466,778 0 0 466,778
Total 24,130,447 44,572,000 0 68,702,447
NT ABF 11,385,571 23,742,083 0 35,127,654
Block 1,391,377 35,682,667 0 37,074,044
Other 293,767 1,605 0 295,372
Total 13,070,716 59,426,355 0 72,497,070
Total ABF funding 1,071,989,415 1,415,326,066 0 2,487,315,481
Total Block funding 173,472,138 304,908,224 0 478,380,361
Total Other funding 28,319,738 662,524 0 28,982,262
Grand Total 1,273,781,291 1,720,896,814 0 2,994,678,104

See explanatory notes following table 3b.

Table 3b – NHR funding by funding type for each state and territory YTD – October 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 October 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 1,343,140,067 1,848,831,471 0 3,191,971,538
Block 242,409,700 552,575,006 0 794,984,706
Other 36,106,576 668,131 0 36,774,707
Total 1,621,656,343 2,402,074,608 0 4,023,730,951
VIC ABF 1,095,648,159 1,793,528,209 0 2,889,176,368
Block 141,909,585 252,297,730 0 394,207,316
Other 28,146,187 404,637 0 28,550,824
Total 1,265,703,931 2,046,230,576 0 3,311,934,507
QLD ABF 853,963,482 1,762,838,301 0 2,616,801,783
Block 131,430,133 316,393,170 0 447,823,303
Other 22,853,301 170,666 0 23,023,966
Total 1,008,246,916 2,079,402,137 0 3,087,649,053
WA ABF 478,762,384 741,302,587 0 1,220,064,971
Block 90,373,868 156,725,043 0 247,098,911
Other 12,591,172 0 0 12,591,172
Total 581,727,424 898,027,630 0 1,479,755,054
SA ABF 293,236,929 805,000,000 0 1,098,236,929
Block 55,240,674 56,942,592 0 112,183,266
Other 8,083,461 1,003,411 0 9,086,871
Total 356,561,064 862,946,003 0 1,219,507,067
TAS ABF 88,080,538 123,968,238 0 212,048,776
Block 19,039,947 73,625,055 0 92,665,003
Other 2,456,075 1 0 2,456,076
Total 109,576,560 197,593,294 0 307,169,855
ACT ABF 86,735,545 186,657,000 0 273,392,545
Block 7,919,133 13,917,000 0 21,836,133
Other 1,867,111 0 0 1,867,111
Total 96,521,788 200,574,000 0 297,095,788
NT ABF 45,542,284 94,968,333 0 140,510,617
Block 5,565,510 142,730,667 0 148,296,176
Other 1,175,069 6,331 0 1,181,400
Total 52,282,863 237,705,331 0 289,988,194
Total ABF funding 4,285,109,388 7,357,094,139 0 11,642,203,527
Total Block funding 693,888,550 1,565,206,263 0 2,259,094,813
Total Other funding 113,278,951 2,253,177 0 115,532,128
Grand Total 5,092,276,890 8,924,553,579 0 14,016,830,468

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 – October 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 2014-15
NSW 192,343 769,371 2,308,114
VIC 148,267 593,067 1,779,200
QLD 113,476 453,905 1,361,714
WA 59,188 242,601 749,831
SA 45,578 194,160 535,696
TAS 10,795 42,744 123,487
ACT 10,687 43,155 128,248
NT 11,087 39,402 118,336
Total 591,421 2,378,405 7,104,626

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.