South Australian report, June 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 South Australia for June 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 SA Department of Health to view the service agreement for that LHN.

Basis for National Health Reform payments – South Australia, June 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 South Australia for June 2015 was advised by the SA Department of Health to be as follows:

In determining the annual funding allocation for all LHNs, the budget has been built up predominantly on an activity basis that shares principles with the IHPA framework. It is designed to equitably distribute funding to each LHN relative to all LHNs in South Australia. This occurs within the confines of a limited funding pool that includes adjustments to recognise cost improvements and the attainment of service efficiencies that are also equitably allocated on an activity basis. Supplementation is provided as block funding where an activity-based approach is not appropriate. This captures the provision of services including teaching, training and research, some mental health services and the delivery of out of hospital strategies incorporating primary health.

Monthly allocations to LHNs will vary for a variety of reasons, but they are predominantly cash flow financed based on need which includes the activity demand on hospital services.

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 – South Australia, June 2015

This table shows funding paid into the South Australian state pool account by the Commonwealth, South Australia or other states/territories, and payments out of the state pool account to LHNs, the state managed fund, the SA Department of Health or the state pool accounts of other states/territories for June 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
93,633,181 93,633,181 93,633,181
Commonwealth
Block funding
14,448,960 14,448,960 14,448,960
Commonwealth
Other funding
1,934,273 1,934,273 1,934,273
Total C'wealth
funding
110,016,414 93,633,181 14,448,960 1,934,273 110,016,414
SA
funding
136,372,802 238,789,820 0 2,500,000 241,289,820
Other state/territory funding 10,000,000 0 0 0
Total 256,389,216 332,423,001 14,448,960 1,934,273 2,500,000 351,306,234

See definitions and explanatory notes following table 1b.

Table 1b – State pool account transactions YTD – South Australia, June 2015

Following on from table 1a, this table shows year-to-date (YTD) funding paid into the South Australian state pool account by the Commonwealth, South Australia or other states/territories, and payments out of the state pool account to LHNs, the state managed fund, the SA Department of Health or the state pool accounts of other states/territories as at June 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
931,860,406 931,860,406 931,860,406
Commonwealth
Block funding
169,544,913 169,544,913 169,544,913
Commonwealth
Other funding
24,157,051 24,157,051 24,157,051
Total C'wealth
funding
1,125,562,370 931,860,406 169,544,913 24,157,051 1,125,562,370
SA
funding
1,994,944,017 1,946,721,711 0 2,500,000 1,949,221,711
Other state/territory funding 10,000,000 0 0 0
Total 3,130,506,387 2,878,582,117 169,544,913 24,157,051 2,500,000 3,074,784,081

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.

SA funding represents funding contributions paid by South Australia into its own state pool account, and subsequently paid to LHNs within the state, to the South Australian health department and/or to other state pool accounts.

Other state/territory funding represents contributions paid to South Australia 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 – South Australia, June 2015

This table shows funding paid into the South Australia state managed fund by the Commonwealth and South Australia, and payments out of the state managed fund to LHNs and other provider organisations for June 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 14,448,960 14,448,960
State/territory Block funding 4,868,418 4,868,418
Total 19,317,378 19,317,378 0 19,317,378

See explanatory notes following table 2b.

Table 2b – State managed fund transactions YTD – South Australia, June 2015

Following on from table 2a, this table shows year-to-date (YTD) funding paid into the South Australian state managed fund by the Commonwealth and South Australia, and YTD payments out of the state managed fund to LHNs and other provider organisations as at June 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 169,544,913 169,544,913
State/territory Block funding 163,468,270 163,468,270
Total 333,013,183 333,013,183 0 333,013,183

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 South Australian 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 – South Australia, June 2015

This table shows NHR funding and payments by service category on both a monthly and year-to-date (YTD) basis for South Australia for June 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 143,074,499 207,937,380 1,818,202,566 1,793,581,136
Admitted mental health 15,160,725 21,694,087 135,171,977 137,018,449
Sub-acute 8,903,228 12,739,536 142,253,761 137,508,793
Emergency department 26,879,340 39,097,019 337,260,988 332,850,300
Non-admitted 35,615,388 50,954,979 489,971,114 477,623,440
Total ABF (Pool) 229,633,181 332,423,001 2,922,860,406 2,878,582,117
Block
Small rural hospitals 6,816,916 6,816,916 132,995,202 132,995,202
Teaching, training & research 6,422,181 6,422,181 90,600,075 90,600,075
Non-admitted mental health 4,108,622 4,108,622 61,717,464 61,717,464
Other non-admitted services 1,969,661 1,969,661 47,700,442 47,700,442
Total Block (SMF) 19,317,378 19,317,378 333,013,183 333,013,183
Other
Public health funding 1,934,273 1,934,273 24,157,051 24,157,051
Overdeposit 0 0 0 0
Cross-border 10,000,000 2,500,000 10,000,000 2,500,000
Interest 372,802 0 3,944,017 0
Total Other (Pool) 12,307,075 4,434,273 38,101,068 26,657,051
Grand Total 261,257,634 356,174,652 3,293,974,657 3,238,252,351

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 – South Australia, June 2015

This table shows NHR contributions (from state, territory and Commonwealth sources) made to each LHN in South Australia during June 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 Adelaide Local Health Network 112,987,372 5,598,924 118,586,296
Central Office Services 3,099,420 0 3,099,420
Country Health SA Local Health Network 55,067,590 7,593,101 62,660,691
Northern Adelaide Local Health Network 50,670,211 2,829,789 53,500,000
Southern Adelaide Local Health Network 79,371,944 2,128,056 81,500,000
Women's and Children's Health Network 31,226,464 1,167,508 32,393,972
Total 332,423,001 19,317,378 351,740,379

See explanatory notes below table 4b.

Table 4b – NHR contributions by local hospital network YTD – South Australia, June 2015

This table shows YTD NHR contributions (from state, territory and Commonwealth sources) made to each LHN in South Australia as at June 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 Adelaide Local Health Network 1,010,251,363 65,918,959 1,076,170,321
Central Office Services 59,886,848 0 59,886,848
Country Health SA Local Health Network 313,034,706 166,774,691 479,809,398
Northern Adelaide Local Health Network 481,480,533 36,316,230 517,796,764
Southern Adelaide Local Health Network 728,829,269 46,670,731 775,500,000
Women's and Children's Health Network 285,099,397 17,332,572 302,431,969
Total 2,878,582,117 333,013,183 3,211,595,300

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 – South Australia, June 2015

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

Local hospital network (LHN) Estimated NWAU delivered in current month Estimated NWAU delivered YTD Estimated annual NWAU 2014-15
Central Adelaide Local Health Network 21,931 196,089 190,305
Central Office Services 602 11,624 11,624
Country Health SA Local Health Network 10,689 60,760 64,553
Northern Adelaide Local Health Network 9,835 93,455 91,747
Southern Adelaide Local Health Network 15,406 141,465 146,756
Women's and Children's Health Network 6,061 55,338 53,746
Total 64,523 558,731 558,731

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.