South Australian report, March 2014

Print friendly version (PDF, 345 kB)

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 March 2014 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, March 2014

For the basis of the Commonwealth contribution to NHR funding, see Basis of Commonwealth NHR funding, 2013-14.

The basis used to determine NHR payments to LHNs in South Australia for March 2014 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 applying an internally developed allocation methodology that is designed to equitably distribute funding to each local hospital network 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.

In March 2014, the Commonwealth provided South Australia with additional public hospital funding of $8,186,383.03 under the 2013-14 Mid-Year Economic and Fiscal Outlook (MYEFO) funding measure: Public Hospital System - additional funding. This funding was provided to offset the downward adjustment to 2013-14 NHR funding applied at the MYEFO due to the application of updated NHR funding indexation parameters. A requirement of the provision of this funding was that the funding be provided to LHNs through the National Health Funding Pool and / or State Managed Fund.

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, March 2014

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 March 2014.

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
70,190,176 70,190,176 70,190,176
Commonwealth
Block funding
11,925,475 11,925,475 11,925,475
Commonwealth
Other funding
1,929,278 1,929,278 1,929,278
Total C'wealth
funding
84,044,930 70,190,176 11,925,475 1,929,278 84,044,930
SA
funding
210,363,758 188,884,348 0 0 188,884,348
Other state/territory funding 0 0 0 0
Total 294,408,688 259,074,525 11,925,475 1,929,278 0 272,929,278

See definitions and explanatory notes following table 1b.

Table 1b – State pool account transactions YTD – South Australia, March 2014

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 March 2014.

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
639,298,297 639,298,297 639,298,297
Commonwealth
Block funding
108,615,931 108,615,931 108,615,931
Commonwealth
Other funding
17,594,371 17,594,371 17,594,371
Total C'wealth
funding
765,508,598 639,298,297 108,615,931 17,594,371 765,508,598
SA
funding
1,632,313,267 1,430,918,894 0 0 1,430,918,894
Other state/territory funding 0 0 0 0
Total 2,397,821,865 2,070,217,191 108,615,931 17,594,371 0 2,196,427,493

Commonwealth ABF funding represents Acute admitted public, Acute admitted private, Non-admitted, and 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 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 – South Australia, March 2014

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 March 2014.

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 11,925,475 11,925,475
State/territory Block funding 33,500,000 33,500,000
Total 45,425,475 45,425,475 0 45,425,475

See explanatory notes following table 2b.

Table 2b – State managed fund transactions YTD – South Australia, March 2014

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 as at March 2014. 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 108,615,931 108,615,931
State/territory Block funding 140,465,131 140,465,131
Total 249,081,062 249,081,062 0 249,081,062

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, March 2014

This table shows NHR funding and payments by service category on both a monthly and year-to-date (YTD) basis for South Australia for March 2014. 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 YTD NHR
funding
YTD NHR
payments
($) ($) ($) ($)
ABF
Acute admitted - public 168,834,149 156,582,564 1,368,596,133 1,246,920,691
Acute admitted - private 10,432,880 9,217,641 93,985,898 85,882,209
Non-admitted 38,500,658 35,549,519 305,695,508 285,894,289
Emergency department 30,967,628 29,590,122 245,635,690 216,391,520
Admitted mental health 11,269,103 10,299,025 86,426,759 79,711,543
Sub-acute 20,185,757 17,835,655 168,958,309 155,416,939
Total ABF (Pool) 280,190,176 259,074,525 2,269,298,297 2,070,217,191
Block
Non-admitted mental health 13,291,979 13,291,979 69,430,222 69,430,269
Small rural hospitals 14,925,915 14,925,915 101,126,016 101,126,000
Teaching, training & research 12,846,925 12,846,925 57,032,288 57,032,283
Other non-admitted services 4,360,656 4,360,656 21,492,536 21,492,510
Total Block (SMF) 45,425,475 45,425,475 249,081,062 249,081,062
Other
Public health funding 1,929,278 1,929,278 17,594,371 17,594,371
Overdeposit 0 0 0 0
Cross-border 0 0 0 0
Interest 363,758 0 2,313,267 0
Total Other (Pool) 2,293,037 1,929,278 19,907,638 17,594,371
Grand Total 327,908,688 306,429,278 2,538,286,996 2,336,892,624

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 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, March 2014

This table shows NHR contributions (from state, territory and Commonwealth sources) made to each LHN in South Australia during March 2014.

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 58,000,000 2,072,437 60,072,437
Country Health SA Local Health Network 30,409,550 19,890,450 50,300,000
Northern Adelaide Local Health Network 89,214,931 6,212,631 95,427,563
Southern Adelaide Local Health Network 61,059,294 15,840,706 76,900,000
Women's and Children's Health Network 20,390,749 1,409,251 21,800,000
Total 259,074,525 45,425,475 304,500,000

See explanatory notes below table 4b.

Table 4b – NHR contributions by local hospital network YTD – South Australia, March 2014

This table shows YTD NHR contributions (from state, territory and Commonwealth sources) made to each LHN in South Australia as at March 2014.

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 770,670,756 52,653,189 823,323,944
Country Health SA Local Health Network 217,342,149 133,393,726 350,735,875
Northern Adelaide Local Health Network 350,603,058 18,224,505 368,827,563
Southern Adelaide Local Health Network 521,211,249 35,220,991 556,432,240
Women's and Children's Health Network 210,389,980 9,588,651 219,978,631
Total 2,070,217,191 249,081,062 2,319,298,253

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, March 2014

This table shows estimated state or territory hospital activity for activity-based funding services expressed as NWAU for March 2014, 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 2013-14
Central Adelaide Local Health Network 11,549 153,459 195,793
Country Health SA Local Health Network 6,055 43,278 57,384
Northern Adelaide Local Health Network 17,765 69,813 92,925
Southern Adelaide Local Health Network 12,158 103,786 137,147
Women's and Children's Health Network 4,060 41,894 54,916
Total 51,588 412,230 538,164

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.