National report - September 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 September 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 September 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 – September 2016

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

State/territory NHR funding NHR payments NHR funding
YTD
NHR payments
YTD
($) ($) ($) ($)
NSW 960,918,313 951,120,987 3,167,509,268 3,141,509,268
VIC 693,952,685 693,952,685 3,032,395,908 3,032,395,908
QLD 812,720,293 812,685,004 2,613,009,914 2,612,910,926
WA 407,099,928 407,099,928 1,360,954,869 1,360,954,858
SA 287,492,293 282,891,062 910,529,489 860,023,185
TAS 81,313,405 81,313,405 272,744,572 272,744,572
ACT 86,179,108 86,179,108 257,290,681 257,290,681
NT 91,456,885 91,455,879 272,867,936 272,864,568
Total 3,421,132,910 3,406,698,058 11,887,302,636 11,810,693,966

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 – September 2016

This table shows NHR funding by the source of funds for each state and territory for September 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 486,235,051 473,083,262 1,600,000 960,918,313
VIC 406,650,902 287,301,782 0 693,952,685
QLD 350,510,597 462,209,696 0 812,720,293
WA 189,234,530 217,865,399 0 407,099,928
SA 104,847,041 182,645,252 0 287,492,293
TAS 30,858,475 50,454,930 0 81,313,405
ACT 29,649,108 48,730,000 7,800,000 86,179,108
NT 19,771,379 71,685,506 0 91,456,885
Total 1,617,757,083 1,793,975,827 9,400,000 3,421,132,910

See explanatory notes following table 2b.

Table 2b – NHR funding by funding source for each state and territory YTD – September 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 September 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 1,446,164,231 1,716,545,038 4,800,000 3,167,509,268
VIC 1,186,236,134 1,846,159,774 0 3,032,395,908
QLD 1,005,165,596 1,607,844,318 0 2,613,009,914
WA 544,889,459 816,065,409 0 1,360,954,869
SA 315,349,691 595,179,797 0 910,529,489
TAS 92,575,424 180,169,147 0 272,744,572
ACT 87,700,681 146,190,000 23,400,000 257,290,681
NT 57,811,068 215,056,868 0 272,867,936
Total 4,735,892,285 7,123,210,351 28,200,000 11,887,302,636

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 – September 2016

This table shows NHR funding for each state and territory by funding type and source for September 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 421,320,890 427,874,939 0 849,195,828
Block 54,993,779 45,095,634 0 100,089,413
Other 9,920,382 112,689 1,600,000 11,633,071
Total 486,235,051 473,083,262 1,600,000 960,918,313
VIC ABF 357,319,262 246,134,355 0 603,453,617
Block 41,563,444 41,136,756 0 82,700,200
Other 7,768,196 30,671 0 7,798,868
Total 406,650,902 287,301,782 0 693,952,685
QLD ABF 309,961,996 392,292,038 0 702,254,034
Block 34,335,458 69,882,369 0 104,217,827
Other 6,213,143 35,290 0 6,248,432
Total 350,510,597 462,209,696 0 812,720,293
WA ABF 163,022,147 173,735,832 0 336,757,979
Block 22,824,445 44,129,567 0 66,954,011
Other 3,387,938 0 0 3,387,938
Total 189,234,530 217,865,399 0 407,099,928
SA ABF 88,130,244 169,000,000 0 257,130,244
Block 14,525,736 13,528,788 0 28,054,524
Other 2,191,062 116,464 0 2,307,525
Total 104,847,041 182,645,252 0 287,492,293
TAS ABF 25,233,753 44,231,983 0 69,465,736
Block 4,964,032 6,222,947 0 11,186,980
Other 660,690 0 0 660,690
Total 30,858,475 50,454,930 0 81,313,405
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 1,006 0 315,122
Total 19,771,379 71,685,506 0 91,456,885
Total ABF funding 1,410,016,719 1,523,709,731 0 2,933,726,450
Total Block funding 176,776,841 269,969,977 0 446,746,817
Total Other funding 30,963,523 296,120 9,400,000 40,659,643
Grand Total 1,617,757,083 1,793,975,827 9,400,000 3,421,132,910

See explanatory notes following table 3b.

Table 3b – NHR funding by funding type for each state and territory YTD – September 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 September 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 1,251,421,746 1,477,140,032 0 2,728,561,779
Block 164,981,338 238,990,703 0 403,972,041
Other 29,761,146 414,303 4,800,000 34,975,449
Total 1,446,164,231 1,716,545,038 4,800,000 3,167,509,268
VIC ABF 1,038,241,213 1,588,067,060 0 2,626,308,273
Block 124,690,333 257,732,472 0 382,422,804
Other 23,304,589 360,242 0 23,664,830
Total 1,186,236,134 1,846,159,774 0 3,032,395,908
QLD ABF 883,519,793 1,363,162,881 0 2,246,682,674
Block 103,006,375 244,582,449 0 347,588,824
Other 18,639,428 98,988 0 18,738,416
Total 1,005,165,596 1,607,844,318 0 2,613,009,914
WA ABF 466,252,311 597,935,832 0 1,064,188,143
Block 68,473,334 218,129,567 0 286,602,901
Other 10,163,814 11 0 10,163,825
Total 544,889,459 816,065,409 0 1,360,954,869
SA ABF 265,199,299 544,000,000 0 809,199,299
Block 43,577,207 50,651,020 0 94,228,227
Other 6,573,185 528,777 0 7,101,962
Total 315,349,691 595,179,797 0 910,529,489
TAS ABF 75,701,259 92,170,986 0 167,872,245
Block 14,892,097 87,998,161 0 102,890,258
Other 1,982,069 0 0 1,982,069
Total 92,575,424 180,169,147 0 272,744,572
ACT ABF 79,524,972 137,742,000 0 217,266,972
Block 6,651,721 8,448,000 0 15,099,721
Other 1,523,988 0 23,400,000 24,923,988
Total 87,700,681 146,190,000 23,400,000 257,290,681
NT ABF 52,810,602 73,579,750 0 126,390,352
Block 4,058,117 141,473,750 0 145,531,867
Other 942,349 3,368 0 945,717
Total 57,811,068 215,056,868 0 272,867,936
Total ABF funding 4,112,671,194 5,873,798,542 0 9,986,469,736
Total Block funding 530,330,522 1,248,006,122 0 1,778,336,643
Total Other funding 92,890,569 1,405,688 28,200,000 122,496,258
Grand Total 4,735,892,285 7,123,210,351 28,200,000 11,887,302,636

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 – September 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 215,350 646,049 2,584,814
VIC 162,112 486,337 1,945,347
QLD 128,936 386,807 1,547,075
WA 68,483 208,601 807,655
SA 49,067 147,450 582,476
TAS 11,580 34,286 133,303
ACT 12,427 36,707 143,666
NT 11,379 35,229 137,544
Total 659,334 1,981,466 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.