Tasmanian report, July 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 Tasmania for July 2013 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 Tasmanian Department of Health and Human Services to view the service agreement for that LHN.

Basis for National Health Reform payments – Tasmania, July 2013

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 Tasmania for July 2013 was advised by the Tasmanian Department of Health and Human Services to be as follows:

In determining the 2013-2014, annual allocation for Tasmanian LHNs (known as Tasmanian Health Organisations (THOs), funding for activity based funding (ABF) and block service streams has been developed using state-based historical funding amounts, supplemented for indexation and adjustments for the impact of Government policy and other adjustments.

The historic funding has then been allocated across the THOs and split between the activity-based and block funding streams using an ABF model, the outputs of which are published in the THO Service Agreements.

Due to final Commonwealth contribution amounts still being finalised, the actual monthly payment amounts for the first quarter will be based on historical payment amount. This will be adjusted in a subsequent month, once the amounts are finalised. However, the ABF Model was used for splitting the amounts into the various service categories and allocating block payments to THOs.

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 – Tasmania, July 2013

This table shows funding paid into the Tasmanian state pool account by the Commonwealth, Tasmania or other states/territories, and payments out of the state pool account to LHNs, the state managed fund, the Tasmanian Department of Health and Human Services or the state pool accounts of other states/territories for July 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
To state pool (other State) Total paid out
($) ($) ($) ($) ($) ($)
Commonwealth
ABF funding
22,504,054 22,504,054 22,504,054
Commonwealth
Block funding
2,233,202 2,233,202 2,233,202
Commonwealth
Other funding
601,254 601,254 601,254
Total C'wealth
funding
25,338,510 22,504,054 2,233,202 601,254 25,338,510
TAS
funding
23,898,457 23,897,678 0 0 23,897,678
Other state/territory funding 0 0
Total 49,236,968 46,401,732 2,233,202 601,254 0 49,236,189

See definitions and explanatory notes following table 1b.

Table 1b – State pool account transactions YTD – Tasmania, July 2013

Following on from table 1a, this table shows year-to-date (YTD) funding paid into the Tasmanian state pool account by the Commonwealth, Tasmania or other states/territories, and payments out of the state pool account to LHNs, the state managed fund, the Tasmanian Department of Health and Human Services or the state pool accounts of other states/territories as at July 2013.

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
22,504,054 22,504,054 22,504,054
Commonwealth
Block funding
2,233,202 2,233,202 2,233,202
Commonwealth
Other funding
601,254 601,254 601,254
Total C'wealth
funding
25,338,510 22,504,054 2,233,202 601,254 25,338,510
TAS
funding
23,898,457 23,897,678 0 0 23,897,678
Other state/territory funding 0 0
Total 49,236,968 46,401,732 2,233,202 601,254 0 49,236,189

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.

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

Other state/territory funding represents contributions paid to Tasmania 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 – Tasmania, July 2013

This table shows funding paid into the Tasmanian state managed fund by the Commonwealth and Tasmania, and payments out of the state managed fund to local hospital networks and other provider organisations for July 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 2,233,202 2,233,202
State/territory Block funding 26,183,051 26,183,051
Total 28,416,253 28,416,253 0 28,416,253

See explanatory notes following table 2b.

Table 2b – State managed fund transactions YTD – Tasmania, July 2013

Following on from table 2a, this table shows year-to-date (YTD) funding paid into the Tasmanian state managed fund by the Commonwealth and Tasmania, and YTD payments out of the state managed fund to LHNs and other provider organisations as at July 2013.

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 2,233,202 2,233,202
State/territory Block funding 26,183,051 26,183,051
Total 28,416,253 28,416,253 0 28,416,253

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 Tasmanian 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 – Tasmania, July 2013

This table shows NHR funding and payments by service category on both a monthly and year-to-date (YTD) basis for Tasmania for July 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 26,969,682 26,969,682 26,969,682 26,969,682
Acute admitted - private 2,666,735 2,666,735 2,666,735 2,666,735
Non-admitted 9,703,964 9,703,964 9,703,964 9,703,964
Emergency department 5,286,928 5,286,928 5,286,928 5,286,928
Admitted mental health 0 0 0 0
Sub-acute 1,774,423 1,774,423 1,774,423 1,774,423
Total ABF (Pool) 46,401,732 46,401,732 46,401,732 46,401,732
Block
Non-admitted mental health 1,800,000 1,800,000 1,800,000 1,800,000
Small rural hospitals 3,812,353 3,800,547 3,812,353 3,800,547
Teaching, training & research 3,202,602 3,214,408 3,202,602 3,214,408
Other non-admitted services 19,601,298 19,601,298 19,601,298 19,601,298
Total Block (SMF) 28,416,253 28,416,253 28,416,253 28,416,253
Other
Public health funding 601,254 601,254 601,254 601,254
Overdeposit 0 0 0 0
Cross-border 0 0 0 0
Interest 779 0 779 0
Total Other (Pool) 602,033 601,254 602,033 601,254
Grand Total 75,420,018 75,419,239 75,420,018 75,419,239

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 – Tasmania, July 2013

This table shows NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Tasmania during July 2013.

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)
($) ($) ($)
Tasmanian Health Organisation - North 18,716,414 13,705,356 32,421,770
Tasmanian Health Organisation - South 21,755,809 9,689,984 31,445,794
Tasmanian Health Service 5,929,509 5,020,912 10,950,421
Total 46,401,732 28,416,253 74,817,985

See explanatory notes below table 4b.

Table 4b – NHR contributions by local hospital network YTD – Tasmania, July 2013

This table shows YTD NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Tasmania as at July 2013.

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)
($) ($) ($)
Tasmanian Health Organisation - North 18,716,414 13,705,356 32,421,770
Tasmanian Health Organisation - South 21,755,809 9,689,984 31,445,794
Tasmanian Health Service 5,929,509 5,020,912 10,950,421
Total 46,401,732 28,416,253 74,817,985

NHR contributions in this table are GST exclusive to enable comparability of NHR payments in each local hospital network 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 – Tasmania, July 2013

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

Local hospital network (LHN) Estimated NWAU delivered in current month Estimated NWAU delivered YTD Estimated annual NWAU 2013-14
Tasmanian Health Organisation - North 4,084 4,084 47,904
Tasmanian Health Organisation - South 4,214 4,214 50,083
Tasmanian Health Service 1,414 1,414 16,091
Total 9,712 9,712 114,078

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.