National report - October 2016

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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 2016.

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 2016-17 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 2016, see State or territory reports.

For the basis of the Commonwealth contribution to NHR funding, see Basis of Commonwealth NHR funding, 2016-17.

NHR funding and payments

Table 1 – NHR funding and payments for each state and territory – October 2016

This table shows NHR funding and payments for each state and territory for October 2016.

State/territory NHR funding NHR payments NHR funding
YTD
NHR payments
YTD
($) ($) ($) ($)
NSW 987,576,697 944,576,697 4,155,085,966 4,086,085,966
VIC 732,433,405 732,433,405 3,764,829,312 3,764,829,312
QLD 854,758,706 854,731,277 3,467,768,620 3,467,642,203
WA 384,189,663 383,986,082 1,745,144,531 1,744,940,940
SA 264,760,327 301,911,062 1,175,289,816 1,161,934,247
TAS 82,276,819 82,276,819 355,021,391 355,021,391
ACT 86,179,108 86,179,108 343,469,790 343,469,790
NT 91,456,883 91,455,879 364,324,819 364,320,447
Total 3,483,631,608 3,477,550,329 15,370,934,244 15,288,244,295

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 2016

This table shows NHR funding by the source of funds for each state and territory for October 2016.

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 486,235,051 499,741,646 1,600,000 987,576,697
VIC 406,650,902 325,782,502 0 732,433,405
QLD 350,510,597 504,248,109 0 854,758,706
WA 189,234,530 194,955,133 0 384,189,663
SA 104,847,041 159,913,286 0 264,760,327
TAS 30,858,475 51,418,344 0 82,276,819
ACT 29,649,108 48,730,000 7,800,000 86,179,108
NT 19,771,379 71,685,504 0 91,456,883
Total 1,617,757,083 1,856,474,525 9,400,000 3,483,631,608

See explanatory notes following table 2b.

Table 2b – NHR funding by funding source for each state and territory YTD – October 2016

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 2016.

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 1,932,399,282 2,216,286,684 6,400,000 4,155,085,966
VIC 1,592,887,036 2,171,942,276 0 3,764,829,312
QLD 1,355,676,193 2,112,092,427 0 3,467,768,620
WA 734,123,989 1,011,020,542 0 1,745,144,531
SA 420,196,733 755,093,083 0 1,175,289,816
TAS 123,433,899 231,587,492 0 355,021,391
ACT 117,349,790 194,920,000 31,200,000 343,469,790
NT 77,582,447 286,742,372 0 364,324,819
Total 6,353,649,368 8,979,684,876 37,600,000 15,370,934,244

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 2016

This table shows NHR funding for each state and territory by funding type and source for October 2016. 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 421,320,889 456,745,751 0 878,066,640
Block 54,993,779 42,804,716 0 97,798,495
Other 9,920,382 191,180 1,600,000 11,711,562
Total 486,235,051 499,741,646 1,600,000 987,576,697
VIC ABF 357,319,262 279,658,504 0 636,977,766
Block 41,563,444 46,020,958 0 87,584,402
Other 7,768,196 103,040 0 7,871,237
Total 406,650,902 325,782,502 0 732,433,405
QLD ABF 309,961,996 434,338,312 0 744,300,308
Block 34,335,458 69,882,369 0 104,217,827
Other 6,213,143 27,429 0 6,240,571
Total 350,510,597 504,248,109 0 854,758,706
WA ABF 163,022,147 180,245,277 0 343,267,424
Block 22,824,445 14,709,856 0 37,534,300
Other 3,387,938 0 0 3,387,938
Total 189,234,530 194,955,133 0 384,189,663
SA ABF 88,130,244 130,000,000 0 218,130,244
Block 14,525,736 29,728,788 0 44,254,524
Other 2,191,062 184,498 0 2,375,559
Total 104,847,041 159,913,286 0 264,760,327
TAS ABF 25,233,753 31,322,046 0 56,555,799
Block 4,964,032 20,096,298 0 25,060,330
Other 660,690 0 0 660,690
Total 30,858,475 51,418,344 0 82,276,819
ACT ABF 26,923,872 45,914,000 0 72,837,872
Block 2,217,240 2,816,000 0 5,033,240
Other 507,996 0 7,800,000 8,307,996
Total 29,649,108 48,730,000 7,800,000 86,179,108
NT ABF 18,104,557 24,526,583 0 42,631,140
Block 1,352,706 47,157,917 0 48,510,622
Other 314,116 1,004 0 315,121
Total 19,771,379 71,685,504 0 91,456,883
Total ABF funding 1,410,016,719 1,582,750,473 0 2,992,767,193
Total Block funding 176,776,841 273,216,901 0 449,993,741
Total Other funding 30,963,523 507,151 9,400,000 40,870,674
Grand Total 1,617,757,083 1,856,474,525 9,400,000 3,483,631,608

See explanatory notes following table 3b.

Table 3b – NHR funding by funding type for each state and territory YTD – October 2016

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 2016. 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 1,672,742,636 1,933,885,783 0 3,606,628,419
Block 219,975,118 281,795,418 0 501,770,536
Other 39,681,528 605,483 6,400,000 46,687,011
Total 1,932,399,282 2,216,286,684 6,400,000 4,155,085,966
VIC ABF 1,395,560,474 1,867,725,565 0 3,263,286,039
Block 166,253,777 303,753,429 0 470,007,206
Other 31,072,785 463,282 0 31,536,067
Total 1,592,887,036 2,171,942,276 0 3,764,829,312
QLD ABF 1,193,481,789 1,797,501,193 0 2,990,982,981
Block 137,341,834 314,464,818 0 451,806,651
Other 24,852,571 126,417 0 24,978,988
Total 1,355,676,193 2,112,092,427 0 3,467,768,620
WA ABF 629,274,458 778,181,109 0 1,407,455,567
Block 91,297,779 232,839,422 0 324,137,201
Other 13,551,752 11 0 13,551,763
Total 734,123,989 1,011,020,542 0 1,745,144,531
SA ABF 353,329,542 674,000,000 0 1,027,329,542
Block 58,102,943 80,379,808 0 138,482,751
Other 8,764,247 713,275 0 9,477,522
Total 420,196,733 755,093,083 0 1,175,289,816
TAS ABF 100,935,012 123,493,032 0 224,428,044
Block 19,856,129 108,094,460 0 127,950,588
Other 2,642,758 0 0 2,642,758
Total 123,433,899 231,587,492 0 355,021,391
ACT ABF 106,448,844 183,656,000 0 290,104,844
Block 8,868,961 11,264,000 0 20,132,961
Other 2,031,985 0 31,200,000 33,231,985
Total 117,349,790 194,920,000 31,200,000 343,469,790
NT ABF 70,915,159 98,106,333 0 169,021,492
Block 5,410,822 188,631,667 0 194,042,489
Other 1,256,466 4,372 0 1,260,838
Total 77,582,447 286,742,372 0 364,324,819
Total ABF funding 5,522,687,913 7,456,549,015 0 12,979,236,928
Total Block funding 707,107,362 1,521,223,022 0 2,228,330,384
Total Other funding 123,854,093 1,912,839 37,600,000 163,366,931
Grand Total 6,353,649,368 8,979,684,876 37,600,000 15,370,934,244

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 2016

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 2016-17
NSW 215,350 861,398 2,584,814
VIC 162,112 648,449 1,945,347
QLD 128,936 515,743 1,547,075
WA 67,973 276,574 807,655
SA 49,615 197,065 582,476
TAS 11,651 45,937 133,303
ACT 12,084 49,540 143,666
NT 11,886 47,115 137,544
Total 659,608 2,641,822 7,881,880

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.