Tasmanian report, June 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 June 2013 as part of the National Health Reform Agreement.

Participation in the National Health Funding Pool – Tasmania, June 2013

In signing the National Health Reform Agreement (the Agreement), it was the intention of all states and territories that they would have the necessary legislation in place to enable them to participate in the National Health Funding Pool from 1 July 2012.

Tasmania has participated in the National Health Funding Pool since 1 July 2012.

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. A local hospital network 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 a local hospital network.

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, local hospital networks 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: Local hospital networks 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 local hospital network, contact the Tasmanian Department of Health and Human Services to view the service agreement for that local hospital network.

Basis for National Health Reform payments – Tasmania, June 2013

For the basis of the Commonwealth contribution to NHR funding, see Basis of Commonwealth NHR funding, 2012-13.

The basis used to determine NHR payments to local hospital networks (LHNs) in Tasmania for June 2013 was advised by the Tasmanian Department of Health and Human Services to be as follows:

In determining the annual allocation for Tasmanian local hospital networks (also known as Tasmanian Health Organisations (THOs)), budgets have been developed using state based historical funding amounts for both activity-based funding (ABF) and block service streams, supplemented by indexation at a flat rate of 2.5% which approximates the level of indexation which would have been provided to the local hospital networks in previous years based on:

  • Indexation on new wage agreements at 2.0% per annum
  • Indexation of general operating expenses at 2.5% per annum, and
  • Indexation on medical, surgical and pharmaceutical supplies at 4.0% per annum.

On a monthly basis, from October 2012, state activity-based funding is based on 1/12 of the total funding provided to each local hospital network and block payments are currently based on the timing of expenditure in accordance with budget cash flows, for example, three pays in October/May and payment of an annual insurance premium in November.

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 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, June 2013

This table shows funding paid into the Tasmanian state pool account by the Commonwealth and Tasmania, and payments out of the state pool account to local hospital networks, the state managed fund, and the Tasmanian Department of Health and Human Services for June 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
Total paid out
($) ($) ($) ($) ($)
Commonwealth
ABF funding
18,887,889 18,887,889 18,887,889
Commonwealth
Block funding
4,202,440 4,202,440 4,202,440
Commonwealth
Other funding
555,914 555,914 555,914
Total C'wealth
funding
23,646,243 18,887,889 4,202,440 555,914 23,646,243
Total state/territory
funding
21,629,062 11,405,810 20,264 21,649,280
Grand Total 45,275,304 30,293,698 4,202,440 576,178 45,295,522

See definitions and explanatory notes following table 1b.

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

Following on from table 1a, this table shows year-to-date (YTD) funding paid into the Tasmanian state pool account by the Commonwealth and Tasmania, and YTD payments out of the state pool account to local hospital networks, the state managed fund, and the Tasmanian Department of Health and Human Services as at June 2013.

NHR funding by source Paid into state
pool account
YTD
Paid out of state pool account YTD
To local hospital
networks
YTD
To state
managed fund
YTD
To state health
department
YTD
Total paid out
YTD
($) ($) ($) ($) ($)
Commonwealth
ABF funding
233,205,250 233,205,250 233,205,250
Commonwealth
Block funding
51,886,743 51,886,743 51,886,743
Commonwealth
Other funding
6,828,812 6,828,812 6,828,812
Total C'wealth
funding
291,920,804 233,205,250 51,886,743 6,828,812 291,920,804
Total state/territory
funding
247,081,159 236,837,689 20,264 247,081,159
Grand Total 539,001,963 470,042,939 51,886,743 6,849,076 539,001,963

Note: The amounts shown as State/Territory funding paid into the state pool account in tables 1a and 1b include a cross-border contribution of $10,223,206 by Tasmania.
The amounts shown as State/Territory funding paid out of state pool account in tables 1a and 1b include a cross-border payment of $10,223,206 to Victoria.

Commonwealth ABF funding represents Acute admitted public, Acute admitted private, Non-admitted, and Emergency department service categories, which are funded by the Commonwealth through the state pool account and subsequently paid to local hospital networks.

Commonwealth Block funding represents Mental health, Small rural and metropolitan hospitals, Sub-acute, Teaching, training and research, and Other 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.

State/territory funding represents funding contributions paid by Tasmania into its own state pool account, and subsequently paid to local hospital networks within the state and/or to state or territory health departments.

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, June 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 June 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 4,202,440 4,202,440
State/territory Block funding 34,456,654 34,456,654
Total 38,659,094 37,534,542 1,124,552 38,659,094

See explanatory notes following table 2b.

Table 2b – State managed fund transactions YTD – Tasmania, June 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 local hospital networks and other provider organisations as at June 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 51,886,743 51,886,743
State/territory Block funding 242,085,647 242,085,647
Total 293,972,390 280,087,749 13,884,640 293,972,390

Block funding represents Mental health, Small rural and metropolitan hospitals, Sub-acute, Teaching, training and research, and Other 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 local hospital networks 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 local hospital networks 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, June 2013

This table shows NHR funding and payments by service category on both a monthly and year-to-date (YTD) basis for Tasmania for June 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 22,452,032 22,452,032 344,841,822 344,841,822
Acute admitted - private 2,229,554 2,229,554 33,632,028 33,632,028
Non-admitted 2,330,464 2,330,464 39,669,398 39,669,398
Emergency department 3,281,648 3,281,648 51,899,691 51,899,691
Total ABF (Pool) 30,293,698 30,293,698 470,042,939 470,042,939
Block
Mental health 1,062,155 1,124,552 13,114,232 13,884,640
Small rural and metro hospitals 13,114,152 13,052,980 94,091,913 93,339,919
Sub-acute 4,564,512 4,564,286 38,383,853 38,380,612
Teaching, training and research 1,814,600 1,814,515 13,329,357 13,327,713
Other 18,103,676 18,102,762 135,053,035 135,039,506
Total Block (SMF) 38,659,094 38,659,094 293,972,390 293,972,390
Other
Public health funding 555,914 555,914 6,828,812 6,828,812
Overdeposit 0 0 0 0
Cross-border 10,223,206 10,223,206 10,223,206 10,223,206
Interest 46 20,264 20,264 20,264
Total Other (Pool) 10,779,166 10,799,384 17,072,282 17,072,282
Grand Total 79,731,959 79,752,177 781,087,610 781,087,611

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

Cross-border funding arrangements between states and territories are yet to be put in place for state and territory contributions.

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

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

NHR payment distribution by local hospital network

Table 4 – NHR payment distribution by local hospital network – Tasmania, June 2013

This table shows NHR payments (from state, territory and Commonwealth sources) made to each local hospital network (LHN) in Tasmania during June 2013.

NHR payments distributed to local hospital networks (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 payments
(ex GST)
($) ($) ($)
Tasmanian Health Organisation - North 11,267,277 16,461,991 27,729,268
Tasmanian Health Organisation - South 16,394,807 11,632,941 28,027,748
Tasmanian Health Service 2,631,614 9,439,611 12,071,225
Total 30,293,698 37,534,542 67,828,240

A local hospital network (LHN) is an organisation that provides public hospital services in accordance with the National Health Reform Agreement. A local hospital network 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 a local hospital network.

NHR payments in this table are GST exclusive to enable comparability of NHR payments in each local hospital network report.

Note: This table excludes GST and payments to other provider organisations (non-local hospital networks).
The majority of government funding to local hospital networks 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 NWAU by local hospital network

States and territories provide NHR funding amounts and service volumes as service 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.

Table 5 – Estimated monthly, YTD and annual NWAU by local hospital network – Tasmania, June 2013

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

Local hospital network (LHN) Estimated NWAU delivered in current month Estimated NWAU delivered YTD Estimated annual NWAU 2012-13
Tasmanian Health Organisation - North 2,992 37,209 37,209
Tasmanian Health Organisation - South 4,570 57,757 57,757
Tasmanian Health Service 1,049 14,002 14,002
Total 8,611 108,968 108,968

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.