Northern Territory report, March 2015

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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 March 2015 as part of the National Health Reform Agreement.

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 an LHN.

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, LHNs 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: 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 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 NT Department of Health to view the service agreement for that LHN.

Basis for National Health Reform payments – Northern Territory, March 2015

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

The basis used to determine NHR payments to LHNs in the Northern Territory for March 2015 was advised by the NT Department of Health to be as follows:

The annual funding allocation for the Top End and Central Australian Health and Hospital Services 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 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 LHNs are engaged in.

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.

State pool account transactions

Table 1a – State pool account transactions – Northern Territory, March 2015

This table shows funding paid into the Northern Territory state pool account by the Commonwealth, the Northern Territory or other states/territories, and payments out of the state pool account to LHNs, the state managed fund, the NT Department of Health or the state pool accounts of other states/territories for March 2015.

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
To state pool (other State) Total paid out
($) ($) ($) ($) ($) ($)
Commonwealth
ABF funding
11,888,323 11,888,323 11,888,323
Commonwealth
Block funding
1,405,246 1,405,246 1,405,246
Commonwealth
Other funding
300,215 300,215 300,215
Total C'wealth
funding
13,593,784 11,888,323 1,405,246 300,215 13,593,784
NT
funding
23,743,532 23,742,083 0 0 23,742,083
Other state/territory funding 0 0 0 0
Total 37,337,317 35,630,406 1,405,246 300,215 0 37,335,868

See definitions and explanatory notes following table 1b.

Table 1b – State pool account transactions YTD – Northern Territory, March 2015

Following on from table 1a, this table shows year-to-date (YTD) funding paid into the Northern Territory state pool account by the Commonwealth, the Northern Territory or other states/territories, and payments out of the state pool account to LHNs, the state managed fund, the NT Department of Health or the state pool accounts of other states/territories as at March 2015.

NHR funding by source Paid into state
pool account
Paid out of state pool account
To Local hospital
networks
YTD
To State
Managed Fund
YTD
To state health
department
YTD
To state pool (other State)
YTD
Total paid out
YTD
($) ($) ($) ($) ($) ($)
Commonwealth
ABF funding
103,055,615 103,055,615 103,055,615
Commonwealth
Block funding
12,545,505 12,545,505 12,545,505
Commonwealth
Other funding
2,659,000 2,659,000 2,659,000
Total C'wealth
funding
118,260,120 103,055,615 12,545,505 2,659,000 118,260,120
NT
funding
213,692,986 213,678,750 0 0 213,678,750
Other state/territory funding 0 0 0 0
Total 331,953,106 316,734,365 12,545,505 2,659,000 0 331,938,870

Commonwealth ABF funding represents Acute admitted, Non-admitted, Emergency department, Sub-acute, and Admitted mental health service categories, which are funded by the Commonwealth through the state pool account and subsequently paid to LHNs.

Commonwealth Block funding represents Non-admitted mental health, Small rural hospitals, Teaching, training & research, and Other non-admitted 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.

NT funding represents funding contributions paid by the Northern Territory into its own state pool account, and subsequently paid to LHNs within the state, to the Northern Territory health department and/or to other state pool accounts.

Other state/territory funding represents contributions paid to the Northern Territory by other states and territories for cross-border activity.

Note: The grey shaded areas in these tables reflect cells that are not applicable for a particular 'paid out' column. For example, Commonwealth block funding is only paid to state managed funds and not to 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, March 2015

This table shows funding paid into the the Northern Territory state managed fund by the Commonwealth and the Northern Territory, and payments out of the state managed fund to LHNs and other provider organisations for March 2015.

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 1,405,246 1,405,246
State/territory Block funding 35,665,380 35,665,380
Total 37,070,626 37,070,626 0 37,070,626

See explanatory notes following table 2b.

Table 2b – State managed fund transactions YTD – Northern Territory, March 2015

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 to LHNs and other provider organisations as at March 2015.

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 12,545,505 12,545,505
State/territory Block funding 321,109,427 321,109,427
Total 333,654,932 333,654,932 0 333,654,932

Block funding represents Non-admitted mental health, Small rural hospitals, Teaching, training & research, and Other non-admitted 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 LHNs 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 LHNs 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, March 2015

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 March 2015. 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 25,012,587 25,012,587 222,728,696 222,728,696
Admitted mental health 1,596,548 1,596,548 14,216,725 14,216,725
Sub-acute 1,069,261 1,069,261 9,465,849 9,465,849
Emergency department 4,093,146 4,093,146 36,392,298 36,392,298
Non-admitted 3,858,864 3,858,864 33,930,797 33,930,797
Total ABF (Pool) 35,630,406 35,630,406 316,734,365 316,734,365
Block
Small rural hospitals 4,926,277 4,881,385 44,292,914 43,885,960
Teaching, training & research 842,523 906,498 7,556,747 8,137,118
Non-admitted mental health 525,184 524,102 4,712,473 4,701,055
Other non-admitted services 30,776,642 30,758,642 277,092,798 276,930,798
Total Block (SMF) 37,070,626 37,070,626 333,654,932 333,654,932
Other
Public health funding 300,215 300,215 2,659,000 2,659,000
Overdeposit 0 0 0 0
Cross-border 0 0 0 0
Interest 1,449 0 14,236 0
Total Other (Pool) 301,664 300,215 2,673,236 2,659,000
Grand Total 73,002,697 73,001,248 653,062,533 653,048,297

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 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 LHNs - 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 LHNs are already being funded for the cost of treating cross-border patients - shown in the Cross-border row under Other in the above table.

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

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

NHR contributions by local hospital network

Table 4a – NHR contributions by local hospital network – Northern Territory, March 2015

This table shows NHR contributions (from state, territory and Commonwealth sources) made to each LHN in the Northern Territory during March 2015.

NHR contributions to 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 payment
(ex GST)
($) ($) ($)
Central Australia Health Service 12,304,235 8,674,626 20,978,861
Top End Health Service 23,326,171 28,396,001 51,722,172
Total 35,630,406 37,070,626 72,701,033

See explanatory notes below table 4b.

Table 4b – NHR contributions by local hospital network YTD – Northern Territory, March 2015

This table shows YTD NHR contributions (from state, territory and Commonwealth sources) made to each LHN in the Northern Territory as at March 2015.

NHR contributions to LHNs are separated into an activity-based funding (ABF) component and a block component.

Local hospital network ABF component YTD
(ex GST)
Block component YTD
(ex GST)
Total NHR payment YTD
(ex GST)
($) ($) ($)
Central Australia Health Service 114,832,354 78,035,481 192,867,835
Top End Health Service 201,902,010 255,619,452 457,521,462
Total 316,734,365 333,654,932 650,389,297

NHR contributions in this table are GST exclusive to enable comparability of NHR payments in each LHN report.

Note: This table excludes GST.
The majority of government funding to LHNs 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 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 (YTD) 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 5 – Estimated monthly, YTD and annual NWAU by local hospital network – Northern Territory, March 2015

This table shows estimated state or territory hospital activity for activity-based funding services expressed as NWAU for March 2015, the associated cumulative year-to-date (YTD), and total estimated annual NWAU for each LHN in the Northern Territory.

Local hospital network (LHN) Estimated NWAU delivered in current month Estimated NWAU delivered YTD Estimated annual NWAU 2014-15
Central Australia Health Service 3,569 31,969 42,758
Top End Health Service 6,619 55,725 75,578
Total 10,188 87,694 118,336

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.