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

Participation in the National Health Funding Pool – Tasmania, May 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, May 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 May 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, May 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 May 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
19,164,320 19,164,320 19,164,320
Commonwealth
Block funding
4,263,944 4,263,944 4,263,944
Commonwealth
Other funding
563,953 563,953 563,953
Total C'wealth
funding
23,992,218 19,164,320 4,263,944 563,953 23,992,218
Total state/territory
funding
21,080,634 21,080,586 0 21,080,586
Grand Total 45,072,852 40,244,906 4,263,944 563,953 45,072,804

See definitions and explanatory notes following table 1b.

Table 1b – State pool account transactions YTD – Tasmania, May 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 May 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
214,317,361 214,317,361 214,317,361
Commonwealth
Block funding
47,684,303 47,684,303 47,684,303
Commonwealth
Other funding
6,272,898 6,272,898 6,272,898
Total C'wealth
funding
268,274,562 214,317,361 47,684,303 6,272,898 268,274,562
Total state/territory
funding
225,452,097 225,431,880 0 225,431,880
Grand Total 493,726,659 439,749,241 47,684,303 6,272,898 493,706,441

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, May 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 May 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 4,263,944 4,263,944
State/territory Block funding 26,719,075 26,719,075
Total 30,983,019 29,842,009 1,141,011 30,983,019

See explanatory notes following table 2b.

Table 2b – State managed fund transactions YTD – Tasmania, May 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 May 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 47,684,303 47,684,303
State/territory Block funding 207,628,992 207,628,992
Total 255,313,295 242,553,208 12,760,088 255,313,295

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, May 2013

This table shows NHR funding and payments by service category on both a monthly and year-to-date (YTD) basis for Tasmania for May 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 29,707,813 29,707,813 322,389,790 322,389,790
Acute admitted - private 2,893,879 2,893,879 31,402,473 31,402,473
Non-admitted 3,440,391 3,440,391 37,338,934 37,338,934
Emergency department 4,202,824 4,202,824 48,618,043 48,618,043
Total ABF (Pool) 40,244,906 40,244,906 439,749,241 439,749,241
Block
Mental health 1,077,700 1,141,011 12,052,077 12,760,088
Small rural and metro hospitals 10,056,570 9,994,503 80,977,762 80,286,939
Sub-acute 3,891,679 3,891,450 33,819,341 33,816,327
Teaching, training and research 1,548,813 1,548,727 11,514,758 11,513,198
Other 14,408,256 14,407,329 116,949,359 116,936,744
Total Block (SMF) 30,983,019 30,983,019 255,313,295 255,313,295
Other
Public health funding 563,953 563,953 6,272,898 6,272,898
Overdeposit 0 0 0 0
Cross-border 0 0 0 0
Interest 48 0 20,218 0
Total Other (Pool) 564,001 563,953 6,293,116 6,272,898
Grand Total 71,791,927 71,791,879 701,355,652 701,335,434

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, May 2013

This table shows NHR payments (from state, territory and Commonwealth sources) made to each local hospital network (LHN) in Tasmania during May 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 14,580,002 11,440,308 26,020,310
Tasmanian Health Organisation - South 20,823,383 11,900,356 32,723,738
Tasmanian Health Service 4,841,522 6,501,345 11,342,867
Total 40,244,906 29,842,009 70,086,915

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, May 2013

This table shows estimated state or territory hospital activity for activity-based funding services expressed as NWAU for May 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 3,250 34,218 37,209
Tasmanian Health Organisation - South 5,301 53,187 57,757
Tasmanian Health Service 1,169 12,953 14,002
Total 9,720 100,358 108,968

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.