Northern Territory report, June 2013

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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 for the Northern Territory for June 2013 as part of the National Health Reform Agreement.

Participation in the National Health Funding Pool – Northern Territory, June 2013

In signing the National Health Reform Agreement (the Agreement), it was the intention of all states and territories that they would have the necessary legislation in place to enable them to participate in the National Health Funding Pool from 1 July 2012.

However, not all states and territories had their legislation in place by that date. As part of the transition to National Health Reform funding, arrangements were put in place whereby those states and territories received equivalent funding directly from the Commonwealth Treasury, and made payments directly from departmental bank accounts to local hospital networks (LHNs). Although these transactions were not made through state pool accounts and state managed funds, they have been included in this report (and designated as ‘notional payments’ into and out of state pool accounts and state managed funds) to enable national comparability for month and year-to-date reporting periods.

The Northern Territory has participated in the National Health Funding Pool since 1 October 2012.

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. A local hospital network 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 local hospital network.

Note: The term ‘local hospital network’ is a national term. Some states and territories use their own terminology to describe these networks, such as local health districts, health organisations, and hospital and health services.

Under the Agreement, local hospital networks receive funding 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: Local hospital networks 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 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 local hospital network, contact the NT Department of Health to view the service agreement for that local hospital network.

Basis for National Health Reform payments – Northern Territory, June 2013

For the basis of the Commonwealth contribution to NHR funding, see Basis of Commonwealth NHR funding, 2012-13.

The basis used to determine NHR payments to local hospital networks (LHNs) in the Northern Territory for June 2013 was advised by the NT Department of Health to be as follows:

The annual funding allocation for the Top End and Central Australian Hospital Networks of Northern Territory has been determined on a historical basis for both the activity-based funding (ABF) and block service streams, supplemented by a level of growth based on Northern Territory Government Wage and Consumer Price Index parameters. Projected activity increases are not budgeted for and both local hospital networks are required to meet demand increases from within existing resources as a cost containment strategy.

Variations to monthly payments to the Northern Territory local hospital networks (LHNs) are made based on cash requirements. Cash requirements are impacted by the Northern Territory Salary payment cycle and other monthly variations, such as contractual obligation payment cycles which the local hospital networks are engaged in. The local hospital networks in the Northern Territory have been in a transitional phase and payments during this period have varied based on costs held centrally being transitionally transferred over.

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 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.
  • Notional NHR payments – funds paid into and out of departmental bank accounts to local hospital networks that would have been transacted through the state pool account and/or state managed fund had NHR funding arrangements been in place. Notional payments are included in 2012-13 reporting to enable national comparability for month and year-to-date reporting periods.

State pool account transactions

Table 1a – State pool account transactions – Northern Territory, June 2013

This table shows funding paid into the Northern Territory state pool account by the Commonwealth and the Northern Territory, and payments out of the state pool account to local hospital networks, the state managed fund, and the NT Department of Health for June 2013.

NHR funding by source Paid into state pool account Paid out of state pool account
To local hospital networks To state
managed
fund
To state
health department
Total paid out
($) ($) ($) ($) ($)
Commonwealth
ABF funding
8,412,356 8,412,356 8,412,356
Commonwealth
Block funding
3,949,526 3,949,526 3,949,526
Commonwealth
Other funding
311,448 311,448 311,448
Total C'wealth
funding
12,673,329 8,412,356 3,949,526 311,448 12,673,329
Total state/territory
funding
21,744,409 21,742,799 0 21,742,799
Grand Total 34,417,739 30,155,155 3,949,526 311,448 34,416,129

See definitions and explanatory notes following table 1b.

Table 1b – State pool account transactions YTD – Northern Territory, June 2013

Following on from table 1a, this table shows year-to-date (YTD) funding paid into the Northern Territory state pool account by the Commonwealth and the Northern Territory, and YTD payments out of the state pool account to local hospital networks, the state managed fund, and the NT Department of Health as at June 2013. These amounts include notional payments for July, August and September 2012.

NHR funding by source Paid into state
pool account
YTD
Paid out of state pool account YTD
To local hospital
networks
YTD
To state
managed fund
YTD
To state health
department
YTD
Total paid out
YTD
($) ($) ($) ($) ($)
Commonwealth
ABF funding
95,329,866 95,329,866 95,329,866
Commonwealth
Block funding
44,922,494 44,922,494 44,922,494
Commonwealth
Other funding
3,527,406 3,527,406 3,527,406
Total C'wealth
funding
143,779,766 95,329,866 44,922,494 3,527,406 143,779,766
Total state/territory
funding
260,928,789 260,913,592 0 260,913,592
Grand Total 404,708,555 356,243,458 44,922,494 3,527,406 404,693,358

Note:Of the total year-to-date amount of $404,708,555 shown in Table 1b as paid into the Northern Territory state pool account, $86,735,104 was notional year-to-date payments.
Of the total year-to-date amount of $404,693,358 shown in Table 1b as paid out of the Northern Territory state pool account, $86,735,104 was notional year-to-date payments.
No payments were made from the Northern Territory state pool account in July, August and September 2012, with payments made directly from departmental bank accounts to local hospital networks.

Commonwealth ABF funding represents Acute admitted public, Acute admitted private, Non-admitted, and Emergency department service categories, which are funded by the Commonwealth through the state pool account and subsequently paid to local hospital networks.

Commonwealth Block funding represents Mental health, Small rural and metropolitan hospitals, Sub-acute, Teaching, training and research, and Other categories, which are funded by the Commonwealth and paid to the state managed fund.

Commonwealth Other funding represents other amounts funded by the Commonwealth, transacted through the state pool account and subsequently paid to state or territory health departments. This currently represents the Commonwealth contribution to public health.

State/territory funding represents funding contributions paid by the Northern Territory into its own state pool account, and subsequently paid to local hospital networks within the state and/or to state or territory health departments.

Note: The grey shaded areas in these tables reflect that these amounts are not applicable for a particular 'paid out' column. For example, Commonwealth block funding is only paid to state managed funds and is not applicable for local hospital networks or state or territory health departments.

NHR funding and payments shown in these tables include GST where applicable.

For more information, see National Health Reform funding and payments.

State managed fund transactions

Table 2a – State managed fund transactions – Northern Territory, June 2013

This table shows funding paid into the Northern Territory state managed fund by the Commonwealth and the Northern Territory, and payments out of the state managed fund to local hospital networks and other provider organisations for June 2013.

NHR funding by source Paid into state managed fund Paid out of state managed fund
To local hospital networks To Other Total paid out
($) ($) ($) ($)
Commonwealth Block funding 3,949,526 3,949,526
State/territory Block funding 23,808,338 23,808,338
Total 27,757,864 27,757,864 0 27,757,864

See explanatory notes following table 2b.

Table 2b – State managed fund transactions YTD – Northern Territory, June 2013

Following on from table 2a, this table shows year-to-date (YTD) funding paid into the Northern Territory state managed fund by the Commonwealth and the Northern Territory, and YTD payments out of the state managed fund as at June 2013. These amounts include notional payments for July, August and September 2012.

NHR funding by source Paid into state
managed fund
YTD
Paid out of state managed fund YTD
To local hospital
networks
YTD
To Other
YTD
Total paid out
YTD
($) ($) ($) ($)
Commonwealth Block funding 44,922,494 44,922,494
State/territory Block funding 256,726,782 256,726,782
Total 301,649,275 301,649,275 0 301,649,275

Block funding represents Mental health, Small rural and metropolitan hospitals, Sub-acute, Teaching, training and research, and Other categories.

Commonwealth Block funding represents Commonwealth block funding contributions paid into the state managed fund from the state pool account, and block payments out of the state managed fund to local hospital networks and other provider organisations.

State/territory Block funding represents Northern Territory block funding contributions into the state managed fund, and block payments out of the state managed fund to local hospital networks and other provider organisations.

Note: The grey shaded areas in these tables reflect that these block payments cannot at this stage be identified by source of funding (state, territory or Commonwealth contribution).

NHR funding and payments shown in these tables include GST where applicable.

For more, see National Health Reform funding and payments.

NHR funding and payments by service category

Table 3 – NHR funding and payments by service category – Northern Territory, June 2013

This table shows NHR funding and payments by service category on both a monthly and year-to-date (YTD) basis for the Northern Territory for June 2013. NHR funding and payments are separated into the following service categories – activity-based funding (ABF), block funding, and other funding.

Service category NHR funding NHR payments NHR funding
YTD
NHR payments
YTD
($) ($) ($) ($)
ABF
Acute admitted - public 23,855,252 23,855,252 281,794,241 281,794,241
Acute admitted - private 1,303,923 1,303,923 15,387,827 15,387,827
Non-admitted 927,679 927,679 10,951,293 10,951,293
Emergency department 4,068,302 4,068,302 48,110,097 48,110,097
Total ABF (Pool) 30,155,155 30,155,155 356,243,458 356,243,458
Block
Mental health 1,425,106 1,432,468 17,101,422 17,108,784
Small rural and metro hospitals 2,586,383 2,619,428 29,798,917 29,831,962
Sub-acute 2,351,967 2,362,761 27,952,675 27,963,469
Teaching, training and research 1,402,114 1,350,912 16,518,783 16,467,582
Other 19,992,295 19,992,295 210,277,478 210,277,478
Total Block (SMF) 27,757,864 27,757,864 301,649,275 301,649,275
Other
Public health funding 311,448 311,448 3,527,406 3,527,406
Overdeposit 0 0 0 0
Cross-border 0 0 0 0
Interest 1,610 0 15,197 0
Total Other (Pool) 313,058 311,448 3,542,603 3,527,406
Grand Total 58,226,077 58,224,467 661,435,336 661,420,139

Total ABF (Pool) is an aggregate of both Commonwealth and state or territory NHR funding and payments for activity-based funding (ABF) which is transacted through the state pool account.

Total Block (SMF) is an aggregate of both Commonwealth and state or territory NHR funding and payments for block funding which is transacted through the state managed fund (SMF).

Total Other (Pool) represents other funding and payments, which are transacted through the state pool account, including public health funding, overdeposits, cross-border funding and payments, and interest. State and territory cross-border payments can either be:

  • Paid to the relevant state or territory's local hospital networks - included within ABF and/or block payments in the above table, or
  • Reimbursed to the relevant state or territory where the state or territory's local hospital networks are already being funded for the cost of treating cross-border patients - shown in the Cross-border row under Other in the above table.

Cross-border funding arrangements between states and territories are yet to be put in place for state and territory contributions.

NHR funding and payments shown in these tables include GST where applicable.

For more information, see National Health Reform funding and payments.

NHR payment distribution by local hospital network

Table 4 – NHR payment distribution by local hospital network – Northern Territory, June 2013

This table shows NHR payments (from state, territory and Commonwealth sources) made to each local hospital network (LHN) in the Northern Territory during June 2013.

NHR payments distributed to local hospital networks (LHNs) are separated into an activity-based funding (ABF) component and a block component.

Local hospital network (LHN) ABF component
(ex GST)
Block component
(ex GST)
Total NHR payments
(ex GST)
($) ($) ($)
Central Australia Health Service 11,242,105 5,145,473 16,387,578
Top End Health Service 18,913,050 22,612,391 41,525,441
Total 30,155,155 27,757,864 57,913,019

A local hospital network (LHN) is an organisation that provides public hospital services in accordance with the National Health Reform Agreement. A local hospital network 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 local hospital network.

NHR payments in this table are GST exclusive to enable comparability of NHR payments in each local hospital network report.

Note: This table excludes GST and payments to other provider organisations (non-local hospital networks).
The majority of government funding to local hospital networks is not subject to GST. However in some cases hospital funding to non-government entities does attract GST, for example, denominational hospitals, privately and commercially owned health facilities, or any other non-government third party provider of health services or related supplies.

For more information, see National Health Reform funding and payments.

Estimated monthly, YTD and annual NWAU by local hospital network

States and territories provide NHR funding amounts and service volumes as service 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 (YTD) NWAU, to be equal to the annual NWAU at the end of the financial year.

Table 5 – Estimated monthly, YTD and annual NWAU by local hospital network – Northern Territory, June 2013

This table shows estimated state or territory hospital activity for activity-based funding services expressed as NWAU for June 2013, the associated cumulative year-to-date (YTD), and total estimated annual NWAU for each local hospital network in the Northern Territory.

Local hospital network (LHN) Estimated NWAU delivered in current month Estimated NWAU delivered YTD Estimated annual NWAU 2012-13
Central Australia Health Service 11,263 37,708 35,838
Top End Health Service 17,309 57,356 57,357
Total 28,572 95,064 93,194

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, by weighting them for their 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 to be delivered in the month.

For more information on the NWAU calculation, see Calculation of NWAU.