Victorian report, December 2012

Print friendly version (PDF, 387 kB)

Table of Contents:

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 Victoria for December 2012 as part of the National Health Reform Agreement.

Participation in the National Health Funding Pool

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.

However, not all states and territories had their legislation in place by that date. As part of the transition to National Health Reform funding, arrangements were put in place whereby those states and territories received equivalent funding directly from the Commonwealth Treasury, and made payments directly from departmental bank accounts to local hospital networks (LHNs). Although these transactions were not made through state pool accounts and state managed funds, they have been included in this report (and designated as ‘notional payments’ into and out of state pool accounts and state managed funds) to enable national comparibility for month and year-to-date reporting periods.

Victoria has participated in the National Health Funding Pool since 1 October 2012.

Local hospital networks and National Health Reform

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 Victorian Department of Health to view the service agreement for that local hospital network.

Note: Amounts shown in the monthly reports do not include the New South Wales contributions to Victoria for Albury Wodonga Health.

Basis for National Health Reform payments

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

The basis used to determine NHR payments to local hospital networks (LHNs) in Victoria for December 2012 was advised by Victoria to be as follows:

Payments in Victoria are based upon "Statement of priorities" agreements between Victorian public health services (LHNs) and the Minister for Health (or Secretary). These annual agreements detail the service profile, strategic priorities and deliverables the local hospital network will achieve in the year ahead; list the key financial, access and service performance priorities and agreed targets; and list funding estimates and associated service activity. Once agreed, Statements of priorities are published at www.health.vic.gov.au/hospitals/sops.htm (external link, opens in a new window).

Funding details are aggregated into ABF funded services (including NWAU equivalent service volume), Block funded services and Other funding for the purpose of determining payments to and from the state pool account and the state managed fund.

Payments are made twice monthly on the basis of one-twelfth of the agreed funding budget, adjusted for cash flow requirements of individual Victorian public health services.

While the basis of NHR payments are reported on a cash basis by the Administrator, LHNs generally report revenue and expenditure on an accrual basis.

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 state managed fund by the state or territory.
  • Notional NHR payments – funds paid into and out of departmental bank accounts to local hospital networks that would have been transacted through the state pool account and/or state managed fund had the NHR funding arrangements been in place. Notional payments are included in 2012-13 reporting to enable national comparability for month and year-to-date reporting periods.

Transactions on the state pool account

This table shows funding paid into the Victorian state pool account by the Commonwealth and Victoria, and payments out of the state pool account to local hospital networks, the state managed fund, and the state health department for December 2012.

Table 1a – State pool account transactions – Victoria, December 2012

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
185,281,481 185,281,481 185,281,481
Commonwealth
Block funding
71,589,446 71,589,446 71,589,446
Commonwealth
Other funding
6,210,585 6,210,585 6,210,585
Total Commonwealth
funding
263,081,512 185,281,481 71,589,446 6,210,585 263,081,512
Total state/territory
funding
235,071,912 477,147,353 316,355 477,463,708
Grand Total 498,153,424 662,428,834 71,589,446 6,526,940 740,545,220

See definitions and explanatory notes following table 1b.

Following on from table 1a, this table shows the year-to-date (YTD) funding paid into the Victorian state pool account by the Commonwealth and Victoria, and payments out of the state pool account to local hospital networks, the state managed fund, and the state health department as at December 2012. These amounts include notional payments for July, August and September 2012.

Table 1b – State pool account transactions YTD – Victoria, December 2012

NHR funding by source Paid into state pool account YTD Paid out of state pool account YTD
To local hospital networks To state managed
fund
To state health department Total paid out
YTD
($) ($) ($) ($) ($)
Commonwealth
ABF funding
1,166,145,832 * * * *
Commonwealth
Block funding
450,606,521 * * * *
Commonwealth
Other funding
38,382,463 * * * *
Total Commonwealth
funding
1,655,134,816 1,166,145,832 450,606,521 38,382,463 1,655,134,816
Total state/territory
funding
2,024,095,971 2,023,571,705 524,265 2,024,095,971
Grand Total 3,679,230,787 3,189,717,537 450,606,521 38,906,728 3,679,230,787

* Information for July, August and September 2012 not provided by Victoria.

Note: Of the total year-to-date amount of $3,679,230,787 shown in Table 1b as paid into and out of the Victorian state pool account, $1,800,223,993 was notional year-to-date payments.

No payments were made from the Victorian state pool account in July, August and September 2012, with payments made directly from departmental bank accounts to local hospital networks.

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 in by Victoria into its own state pool account, and subsequently paid to local hospital networks within Victoria and/or to the Victorian Department of Health.

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 health departments.

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

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

Transactions on the state managed fund

This table shows funding paid into the Victorian state managed fund by the Commonwealth and Victoria and payments out of the state managed fund for December 2012.

Table 2a – State managed fund transactions – Victoria, December 2012

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 71,589,446 71,589,446
State/territory Block funding 202,877,299 202,877,299
Total 274,466,745 266,095,632 8,371,113 274,466,745

See explanatory notes following table 2b.

Following on from table 2a, this table shows the year-to-date (YTD) funding paid into the Victorian state managed fund by the Commonwealth and Victoria and payments out of the state managed fund as at December 2012. These amounts include notional payments for July, August and September 2012.

Table 2b – State managed fund transactions YTD – Victoria, December 2012

NHR funding by source Paid into state managed fund YTD Paid out of state managed fund YTD
To local hospital networks To Other Total paid out
YTD
($) ($) ($) ($)
Commonwealth Block funding 450,606,521 450,606,521
State/territory Block funding 696,591,343 696,591,343
Total 1,147,197,864 1,128,754,001 18,443,863 1,147,197,864

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 Victorian 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 information on NHR funding and payments, see National Health Reform funding and payments.

NHR funding and payments by service category

This table shows the NHR funding and payments by service category on both a monthly and year-to-date (YTD) basis for Victoria for December 2012.

NHR funding and payments are separated into an activity based funding (ABF) component, block component, and other components.

Table 3 – NHR funding and payments by service category – Victoria, December 2012

Service category NHR funding NHR payments NHR funding
YTD
NHR payments
YTD
($) ($) ($) ($)
ABF
Acute admitted - public * * * *
Acute admitted - private * * * *
Non-admitted * * * *
Emergency department * * * *
Total ABF (Pool) 420,037,038 662,428,834 3,189,717,537 3,189,717,537
Block
Mental health * * * *
Small rural & metro hospitals * * * *
Sub-acute * * * *
Teaching, training & research * * * *
Other * * * *
Total Block (SMF) 274,466,745 274,466,745 1,147,197,864 1,147,197,864
Other
Public health funding 6,210,585 6,210,585 38,382,463 38,382,463
Overdeposit 0 0 0 0
Cross border 0 0 0 0
Interest 316,355 316,355 524,265 524,265
Total Other (Pool) 6,526,940 6,526,940 38,906,728 38,906,728
Grand Total 701,030,723 943,422,519 4,375,822,130 4,375,822,130

* Victoria has advised it is unable to provide payment information by service category as its 2012-13 service agreements with local hospital networks do not set separate budgets at that level.

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 payment 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 on NHR funding and payments, see National Health Reform funding and payments.

NHR payment distribution by LHN

This table shows NHR payments (from state, territory and Commonwealth sources) made to each local hospital network (LHN) in Victoria during December 2012.

NHR payments are separated into an activity based funding (ABF) component and a block component.

Table 4 – NHR payment distribution by LHN – Victoria, December 2012

Local hospital network (LHN) ABF component
(ex GST)
Block component
(ex GST)
Total NHR payments
(ex GST)
($) ($) ($)
Albury Wodonga Health 6,750,000 3,159,703 9,909,703
Alexandra District Hospital 0 584,000 584,000
Alfred Health 56,718,000 16,468,807 73,186,807
Alpine Health 0 1,131,000 1,131,000
Austin Health 42,809,000 14,300,315 57,109,315
Bairnsdale Regional Health Service 4,543,323 819,699 5,363,022
Ballarat Health Services 14,790,000 7,614,583 22,404,583
Barwon Health 33,033,208 10,272,562 43,305,770
Bass Coast Regional Health 3,368,984 605,387 3,974,371
Beaufort & Skipton Health Service 0 432,000 432,000
Beechworth Health Service 0 717,000 717,000
Benalla Health 1,657,000 207,695 1,864,695
Bendigo Health Care Group 14,591,616 9,876,733 24,468,349
Boort District Health 0 274,041 274,041
Calvary Health Care Bethlehem 0 2,733,522 2,733,522
Casterton Memorial Hospital 0 514,099 514,099
Castlemaine Health 1,366,741 759,000 2,125,741
Central Gippsland Health Service 4,854,924 784,036 5,638,960
Cobram District Health 0 604,000 604,000
Cohuna District Hospital 0 567,660 567,660
Colac Area Health 3,018,103 292,558 3,310,661
Djerriwarrh Health Services 3,460,000 374,282 3,834,282
Dunmunkle Health Services 0 108,000 108,000
East Grampians Health Service 1,416,000 176,992 1,592,992
East Wimmera Health Service 0 1,027,000 1,027,000
Eastern Health 50,434,000 23,248,711 73,682,711
Echuca Regional Health 4,101,813 562,982 4,664,795
Edenhope and District Memorial Hospital 0 358,000 358,000
Gippsland Southern Health Service 2,154,866 193,172 2,348,038
Goulburn Valley Health 11,302,000 4,849,884 16,151,884
Heathcote Health 0 260,533 260,533
Hepburn Health Service 0 836,000 836,000
Hesse Rural Health Service 0 342,846 342,846
Heywood Rural Health 0 370,510 370,510
Inglewood & Districts Health Service 0 237,815 237,815
Kerang District Health 0 718,715 718,715
Kilmore & District Hospital 0 1,028,000 1,028,000
Kooweerup Regional Health Services 0 748,056 748,056
Kyabram & District Health Services 1,253,218 58,575 1,311,793
Kyneton District Health Service 0 857,574 857,574
Latrobe Regional Hospital 11,115,472 7,220,281 18,335,753
Lorne Community Hospital 0 325,770 325,770
Maldon Hospital 0 139,383 139,383
Mallee Track Health and Community Service 0 506,329 506,329
Mansfield District Hospital 0 573,000 573,000
Maryborough District Health Service 1,520,122 212,298 1,732,420
Melbourne Health 46,903,000 29,126,799 76,029,799
Mercy Public Hospitals Inc. 19,527,000 4,650,729 24,177,729
Monash Health 82,928,000 28,096,522 111,024,522
Moyne Health Services 0 593,339 593,339
Nathalia District Hospital 0 194,000 194,000
Northeast Health Wangaratta 6,081,000 1,726,110 7,807,110
Northern Health 27,503,000 9,137,525 36,640,525
Numurkah District Health Service 0 673,000 673,000
Omeo District Health 0 295,386 295,386
Orbost Regional Health 0 933,913 933,913
Otway Health & Community Services 0 408,342 408,342
Peninsula Health 28,607,000 12,355,334 40,962,334
Peter MacCallum Cancer Institute 8,253,000 966,500 9,219,500
Portland District Health 2,360,692 391,621 2,752,313
Ramsay Health Care Limited (Mildura Base Hospital) 5,498,000 2,241,700 7,739,700
Robinvale District Health Services 0 663,929 663,929
Rochester & Elmore District Health Service 0 601,371 601,371
Rural Northwest Health 0 879,000 879,000
Seymour District Memorial Hospital 0 1,205,000 1,205,000
South Gippsland Hospital 0 669,061 669,061
South West Healthcare 8,601,283 3,426,801 12,028,084
St Vincent's Hospital (Melbourne) 28,154,000 13,547,677 41,701,677
Stawell Regional Health 1,122,000 272,763 1,394,763
Swan Hill District Health 3,083,682 378,871 3,462,553
Tallangatta Health Service 0 342,000 342,000
Terang & Mortlake Health Service 0 740,395 740,395
The Royal Children's Hospital 32,197,238 10,665,142 42,862,380
The Royal Victorian Eye & Ear Hospital 7,308,698 329,500 7,638,198
The Royal Women's Hospital 16,413,000 70,658 16,483,658
Timboon & District Healthcare Service 0 521,835 521,835
Upper Murray Health & Community Services 0 393,000 393,000
Victorian Institute of Forensic Mental Health 0 4,875,000 4,875,000
West Gippsland Healthcare Group 5,542,363 798,083 6,340,446
West Wimmera Health Service 0 1,267,000 1,267,000
Western District Health Service 3,772,588 784,613 4,557,201
Western Health 44,979,000 9,105,682 54,084,682
Wimmera Health Care Group 4,018,000 581,327 4,599,327
Yarram & District Health Service 0 808,633 808,633
Yarrawonga Health 0 769,000 769,000
Yea & District Memorial Hospital 0 238,000 238,000
Total 657,110,934 263,778,269 920,889,203

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 to each local hospital network within the jurisdiction and allow for reconciliation against the Table 1a for each local hospital network report.

Note: 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 on NHR funding and payments, see National Health Reform funding and payments.

Estimated monthly, YTD and annual NWAU by LHN

This table shows estimated state or territory hospital activity for activity based funding services expressed as National Weighted Activity Units (NWAU) for December 2012, the associated cumulative year-to-date (YTD) and total annual estimated NWAU for each local hospital network in Victoria.

NHR funding amounts and service volumes are provided by states and territories as service estimates at the start of each financial year, and may continue to be refined during the course of the year. These estimates form the basis of monthly reporting of service volumes until actual service numbers become available.

The estimated annual NWAU for each local hospital network (LHN) was provided to the Administrator as a basis for determining the Commonwealth NHR activity based funding. Current month NWAU estimates accumulate through the year-to-date NWAU to equal the annual NWAU at the end of the financial year.

Table 5 – Estimated monthly, YTD and annual NWAU by LHN – Victoria, December 2012

Local hospital network (LHN) Estimated NWAU funded in current month Estimated NWAU funded YTD Estimated annual NWAU 2012-13
Albury Wodonga Health 1,257 7,542 15,082
Alfred Health 8,606 51,636 103,275
Austin Health 7,146 42,876 85,746
Bairnsdale Regional Health Service 778 4,668 9,332
Ballarat Health Services 2,791 16,746 33,491
Barwon Health 5,296 31,776 63,553
Bass Coast Regional Health 455 2,730 5,463
Benalla Health 255 1,530 3,055
Bendigo Health Care Group 2,621 15,726 31,450
Castlemaine Health 205 1,230 2,460
Central Gippsland Health Service 790 4,740 9,483
Colac Area Health 315 1,890 3,784
Djerriwarrh Health Services 498 2,988 5,980
East Grampians Health Service 225 1,350 2,703
Eastern Health 8,286 49,716 99,431
Echuca Regional Health 528 3,168 6,335
Gippsland Southern Health Service 232 1,392 2,779
Goulburn Valley Health 1,867 11,202 22,405
Kyabram & District Health Services 205 1,230 2,454
Latrobe Regional Hospital 1,935 11,610 23,225
Maryborough District Health Service 225 1,350 2,699
Melbourne Health 7,167 43,002 86,006
Mercy Public Hospitals Inc. 3,509 21,054 42,111
Monash Health 14,712 88,272 176,546
Northeast Health Wangaratta 1,148 6,888 13,770
Northern Health 4,390 26,340 52,681
Peninsula Health 5,044 30,264 60,530
Peter MacCallum Cancer Institute 1,671 10,026 20,051
Portland District Health 322 1,932 3,868
Ramsay Health Care Limited (Mildura Base Hospital) 1,282 7,692 15,385
South West Healthcare 1,446 8,676 17,357
St Vincent's Hospital (Melbourne) 4,983 29,898 59,790
Stawell Regional Health 203 1,218 2,437
Swan Hill District Health 487 2,922 5,844
The Royal Children's Hospital 4,425 26,550 53,099
The Royal Victorian Eye & Ear Hospital 1,353 8,118 16,233
The Royal Women's Hospital 2,801 16,806 33,611
West Gippsland Healthcare Group 843 5,058 10,121
Western District Health Service 470 2,820 5,635
Western Health 7,967 47,802 95,602
Wimmera Health Care Group 765 4,590 9,179
Total 109,504 657,024 1,314,041

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 NHR funding and payments, see National Health Reform funding and payments.

For more information on the NWAU calculation, see Calculation of NWAU.