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

Basis for National Health Reform payments – Tasmania, May 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 Tasmania for May 2015 was advised by the Tasmanian Department of Health and Human Services to be as follows:

Tasmania has developed a funding model (2014-15 Tasmanian Funding Model) which will take a prospective orientation (i.e. it will produce the forward allocation based on the volumes of services to be funded that are determined in accordance with State planning processes). The ABF Model was used to develop an activity profile and block funded services allocation for each THO for 2014-15.

The funding arrangements and associated pricing focussed on the four ABF work streams of:

  • acute admitted,
  • other admitted (include sub-acute admitted and mental health),
  • non-admitted (include sub-acute non-admitted and mental health), and
  • emergency department

Tasmanian pricing applied in 2014-15 with THOs has not used the NEP. In this regard, Tasmania has used the national average cost per work stream based on Round 16 National Health Cost Data Collection (NHCDC) data for 2011-12 indexed to 2014-15. The National Average Cost was considered the most appropriate (where available) as it provides a National benchmark without the complication of NWAUs and the NEP.

Therefore the 2014-15 Tasmanian ABF Model pricing is based on the following:

  • Overnight Acute Admitted Patients and Same day Admitted Patients- price per weighted separation (National Average Cost indexed),
  • Length of Stay Outliers - a per diem rate will be paid (based on the National Average Cost indexed),
  • ICU Cases - the proposed pricing model will be based on (State Average Cost indexed)
    • price per ICU hour, and
    • price per hour of mechanical ventilation.
  • Non Admitted Patients - price per service event (State Average Cost indexed).
  • Emergency Department Patients - price per UDG (Urgency Disposition Group) (National Average Cost indexed).

The Tasmanian ABF Model also allocates block grants to THOs covering services provided and activities undertaken that are not within the ABF work streams. This includes teaching, training and research, non ABF hospitals and other operational grants costs which are deemed out of scope for Commonwealth funding.

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, May 2015

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 May 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
25,384,689 25,384,689 25,384,689
Commonwealth
Block funding
4,777,110 4,777,110 4,777,110
Commonwealth
Other funding
617,716 617,716 617,716
Total C'wealth
funding
30,779,515 25,384,689 4,777,110 617,716 30,779,515
TAS
funding
26,131,763 26,131,763 0 0 26,131,763
Other state/territory funding 0 0 0 0
Total 56,911,279 51,516,453 4,777,110 617,716 0 56,911,279

See definitions and explanatory notes following table 1b.

Table 1b – State pool account transactions YTD – Tasmania, May 2015

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 May 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
243,360,961 243,360,961 243,360,961
Commonwealth
Block funding
52,422,639 52,422,639 52,422,639
Commonwealth
Other funding
6,769,210 6,769,210 6,769,210
Total C'wealth
funding
302,552,810 243,360,961 52,422,639 6,769,210 302,552,810
TAS
funding
280,374,153 280,374,151 0 0 280,374,151
Other state/territory funding 0 0 0 0
Total 582,926,962 523,735,112 52,422,639 6,769,210 0 582,926,961

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.

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 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 – Tasmania, May 2015

This table shows funding paid into the Tasmania state managed fund by the Commonwealth and Tasmania, and payments out of the state managed fund to LHNs and other provider organisations for May 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 4,777,110 4,777,110
State/territory Block funding 13,051,225 13,051,225
Total 17,828,335 17,828,335 0 17,828,335

See explanatory notes following table 2b.

Table 2b – State managed fund transactions YTD – Tasmania, May 2015

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 May 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 52,422,639 52,422,639
State/territory Block funding 269,539,327 269,539,327
Total 321,961,966 321,961,966 0 321,961,966

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, May 2015

This table shows NHR funding and payments by service category on both a monthly and year-to-date (YTD) basis for Tasmania for May 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 35,312,226 35,312,226 361,373,485 361,373,485
Admitted mental health 2,351,491 2,351,491 23,332,392 23,332,392
Sub-acute 1,677,194 1,677,194 17,047,302 17,047,302
Emergency department 6,523,097 6,523,097 64,853,016 64,853,016
Non-admitted 5,652,445 5,652,445 57,128,918 57,128,918
Total ABF (Pool) 51,516,453 51,516,453 523,735,112 523,735,112
Block
Small rural hospitals 5,640,274 5,640,274 89,088,569 89,088,569
Teaching, training & research 1,672,888 1,672,887 24,061,528 24,061,528
Non-admitted mental health 2,105,094 2,105,094 32,272,423 32,272,423
Other non-admitted services 8,410,079 8,410,079 176,539,447 176,539,447
Total Block (SMF) 17,828,335 17,828,335 321,961,966 321,961,966
Other
Public health funding 617,716 617,716 6,769,210 6,769,210
Overdeposit 0 0 0
Cross-border 0 0 0 0
Interest 0 1 0
Total Other (Pool) 617,716 617,716 6,769,211 6,769,210
Grand Total 69,962,504 69,962,504 852,466,289 852,466,288

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 – Tasmania, May 2015

This table shows NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Tasmania during May 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)
($) ($) ($)
Tasmanian Health Organisation - North 16,685,433 4,713,692 21,399,125
Tasmanian Health Organisation - South 28,404,289 6,836,246 35,240,535
Tasmanian Health Service 6,426,730 6,278,397 12,705,128
Total 51,516,453 17,828,335 69,344,788

See explanatory notes below table 4b.

Table 4b – NHR contributions by local hospital network YTD – Tasmania, May 2015

This table shows YTD NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Tasmania as at May 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)
($) ($) ($)
Tasmanian Health Organisation - North 168,996,300 85,076,388 254,072,688
Tasmanian Health Organisation - South 293,558,334 181,404,218 474,962,552
Tasmanian Health Service 61,180,478 55,481,360 116,661,838
Total 523,735,112 321,961,966 845,697,078

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 – Tasmania, May 2015

This table shows estimated state or territory hospital activity for activity-based funding services expressed as NWAU for May 2015, 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 2014-15
Tasmanian Health Organisation - North 4,130 39,033 43,016
Tasmanian Health Organisation - South 6,249 61,624 67,557
Tasmanian Health Service 2,315 16,073 18,268
Total 12,695 116,730 128,841

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.