Northern Territory report, October 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 October 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, October 2015

For the basis of the Commonwealth contribution to NHR funding, see Basis of Commonwealth NHR funding, 2015-16.

The basis used to determine NHR payments to LHNs in the Northern Territory for October 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 is 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 budgets supplemented by National Health Reform Agreement efficient growth payments.

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, October 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 October 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
13,013,878 13,013,878 13,013,878
Commonwealth
Block funding
1,139,341 1,139,341 1,139,341
Commonwealth
Other funding
311,051 311,051 311,051
Total C'wealth
funding
14,464,271 13,013,878 1,139,341 311,051 14,464,271
NT
funding
24,527,922 24,526,583 0 0 24,526,583
Other state/territory funding 0 0 0 0
Total 38,992,193 37,540,462 1,139,341 311,051 0 38,990,854

See definitions and explanatory notes following table 1b.

Table 1b – State pool account transactions YTD – Northern Territory, October 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 October 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
52,126,126 52,126,126 52,126,126
Commonwealth
Block funding
4,557,366 4,557,366 4,557,366
Commonwealth
Other funding
1,244,205 1,244,205 1,244,205
Total C'wealth
funding
57,927,696 52,126,126 4,557,366 1,244,205 57,927,696
NT
funding
98,111,639 98,106,333 0 0 98,106,333
Other state/territory funding 0 0 0 0
Total 156,039,336 150,232,459 4,557,366 1,244,205 0 156,034,030

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, October 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 October 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 1,139,341 1,139,341
State/territory Block funding 37,568,250 37,568,250
Total 38,707,591 38,707,591 0 38,707,591

See explanatory notes following table 2b.

Table 2b – State managed fund transactions YTD – Northern Territory, October 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 October 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 4,557,366 4,557,366
State/territory Block funding 149,353,000 149,353,000
Total 153,910,366 153,910,366 0 153,910,366

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, October 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 October 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 26,443,132 26,443,132 105,838,309 105,838,309
Admitted mental health 1,687,859 1,687,859 6,755,637 6,755,637
Sub-acute 1,123,648 1,123,648 4,491,076 4,491,076
Emergency department 4,282,664 4,282,664 17,158,772 17,158,772
Non-admitted 4,003,158 4,003,158 15,988,665 15,988,665
Total ABF (Pool) 37,540,462 37,540,462 150,232,459 150,232,459
Block
Small rural hospitals 4,919,218 5,004,172 19,781,329 20,211,343
Teaching, training & research 915,878 921,095 3,673,146 3,558,704
Non-admitted mental health 588,343 498,172 2,379,379 2,063,807
Other non-admitted services 32,284,153 32,284,153 128,076,511 128,076,511
Total Block (SMF) 38,707,591 38,707,591 153,910,366 153,910,366
Other
Public health funding 311,051 311,051 1,244,205 1,244,205
Overdeposit 0 0 0 0
Cross-border 0 0 0 0
Interest 1,339 0 5,306 0
Total Other (Pool) 312,390 311,051 1,249,511 1,244,205
Grand Total 76,560,443 76,559,104 305,392,336 305,387,030

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, October 2015

This table shows NHR contributions (from state, territory and Commonwealth sources) made to each LHN in the Northern Territory during October 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 13,633,049 9,471,605 23,104,654
Top End Health Service 23,907,413 29,235,987 53,143,399
Total 37,540,462 38,707,591 76,248,053

See explanatory notes below table 4b.

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

This table shows YTD NHR contributions (from state, territory and Commonwealth sources) made to each LHN in the Northern Territory as at October 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 55,174,926 40,303,463 95,478,389
Top End Health Service 95,057,533 113,606,903 208,664,436
Total 150,232,459 153,910,366 304,142,825

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, October 2015

This table shows estimated state or territory hospital activity for activity-based funding services expressed as NWAU for October 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 2015-16
Central Australia Health Service 3,220 14,107 43,242
Top End Health Service 6,850 26,488 77,475
Total 10,070 40,595 120,717

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.