Victorian report, January 2013

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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 January 2013 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 January 2013 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.

Victorian local hospital networks receive activity-based funding, block funding and other payments for different services and purposes. Adjustments are made for cash flow needs and costs administered by the Victorian Department of Health on behalf of local hospital networks. Due to the timing and processing of adjustments in January 2013, The Royal Women's Hospital shows a negative payment amount for the block payment.

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.
  • 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 January 2013.

Table 1a – State pool account transactions – Victoria, January 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
185,281,481 180,196,215 180,196,215
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
263,081,512 180,196,215 71,589,446 6,210,585 257,996,246
Total state/territory
funding
24,150,304 23,828,285 321,919 24,150,204
Grand Total 287,231,816 204,024,500 71,589,446 6,532,504 282,146,450

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 January 2013. These amounts include notional payments for July, August and September 2012.

Table 1b – State pool account transactions YTD – Victoria, January 2013

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
1,351,427,313 * * * *
Commonwealth
Block funding
522,195,967 * * * *
Commonwealth
Other funding
44,593,048 * * * *
Total Commonwealth
funding
1,918,216,329 1,346,342,047 522,195,967 44,593,048 1,913,131,062
Total state/territory
funding
2,048,246,275 2,047,399,990 846,184 2,048,246,174
Grand Total 3,966,462,603 3,393,742,037 522,195,967 45,439,232 3,961,377,236

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

Note: Of the total year-to-date amount of $3,966,462,603 shown in Table 1b as paid into the Victorian state pool account, $1,800,223,993 was notional year-to-date payments.

Note: Of the total year-to-date amount of $3,961,377,236 shown in Table 1b as paid 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 January 2013.

Table 2a – State managed fund transactions – Victoria, January 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 71,589,446 71,589,446
State/territory Block funding 10,922,579 10,922,579
Total 82,512,025 81,861,925 650,100 82,512,025

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 January 2013. These amounts include notional payments for July, August and September 2012.

Table 2b – State managed fund transactions YTD – Victoria, January 2013

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 522,195,967 522,195,967
State/territory Block funding 707,513,922 707,513,922
Total 1,229,709,889 1,210,615,926 19,093,963 1,229,709,889

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 January 2013.

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, January 2013

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) 209,109,866 204,024,500 3,398,827,404 3,393,742,037
Block
Mental health * * * *
Small rural & metro hospitals * * * *
Sub-acute * * * *
Teaching, training & research * * * *
Other * * * *
Total Block (SMF) 82,512,025 82,512,025 1,229,709,889 1,229,709,889
Other
Public health funding 6,210,585 6,210,585 44,593,048 44,593,048
Overdeposit 0 0 0 0
Cross border 0 0 0 0
Interest 321,919 321,919 846,184 846,184
Total Other (Pool) 6,532,504 6,532,504 45,439,232 45,439,232
Grand Total 298,154,395 293,069,029 4,673,976,525 4,668,891,158

* 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 January 2013.

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

Table 4 – NHR payment distribution by LHN – Victoria, January 2013

Local hospital network (LHN) ABF component
(ex GST)
Block component
(ex GST)
Total NHR payments
(ex GST)
($) ($) ($)
Albury Wodonga Health 2,264,000 1,382,075 3,646,075
Alexandra District Hospital 0 333,500 333,500
Alfred Health 18,454,000 5,337,000 23,791,000
Alpine Health 0 732,100 732,100
Austin Health 14,765,000 4,837,000 19,602,000
Bairnsdale Regional Health Service 1,051,000 232,000 1,283,000
Ballarat Health Services 4,888,000 2,420,441 7,308,441
Barwon Health 7,936,000 2,979,000 10,915,000
Bass Coast Regional Health 665,000 135,000 800,000
Beaufort & Skipton Health Service 0 143,000 143,000
Beechworth Health Service 0 258,025 258,025
Benalla Health 705,000 85,000 790,000
Bendigo Health Care Group 4,607,000 3,525,000 8,132,000
Boort District Health 0 69,000 69,000
Calvary Health Care Bethlehem 0 886,000 886,000
Casterton Memorial Hospital 0 138,900 138,900
Castlemaine Health 366,000 250,000 616,000
Central Gippsland Health Service 2,591,000 440,000 3,031,000
Cobram District Health 0 200,000 200,000
Cohuna District Hospital 0 159,000 159,000
Colac Area Health 616,000 81,000 697,000
Djerriwarrh Health Services 1,143,000 96,000 1,239,000
Dunmunkle Health Services 0 34,000 34,000
East Grampians Health Service 467,000 60,000 527,000
East Wimmera Health Service 0 400,900 400,900
Eastern Health 11,566,000 5,219,000 16,785,000
Echuca Regional Health 872,000 320,000 1,192,000
Edenhope and District Memorial Hospital 0 250,700 250,700
Gippsland Southern Health Service 682,000 75,000 757,000
Goulburn Valley Health 3,192,000 1,445,000 4,637,000
Heathcote Health 0 58,000 58,000
Hepburn Health Service 0 274,000 274,000
Hesse Rural Health Service 0 108,100 108,100
Heywood Rural Health 0 68,000 68,000
Inglewood & Districts Health Service 0 54,000 54,000
Kerang District Health 0 199,000 199,000
Kilmore & District Hospital 0 338,000 338,000
Kooweerup Regional Health Services 0 149,000 149,000
Kyabram & District Health Services 402,000 8,000 410,000
Kyneton District Health Service 0 287,000 287,000
Latrobe Regional Hospital 2,610,000 2,092,000 4,702,000
Lorne Community Hospital 0 69,000 69,000
Maldon Hospital 0 32,000 32,000
Mallee Track Health and Community Service 0 127,000 127,000
Mansfield District Hospital 0 259,100 259,100
Maryborough District Health Service 475,000 40,000 515,000
Melbourne Health 11,955,000 9,007,000 20,962,000
Mercy Public Hospitals Inc. 6,490,000 1,488,000 7,978,000
Monash Health 28,516,105 9,856,560 38,372,665
Moyne Health Services 0 99,000 99,000
Nathalia District Hospital 0 64,000 64,000
Northeast Health Wangaratta 2,931,000 571,451 3,502,451
Northern Health 8,942,000 2,832,000 11,774,000
Numurkah District Health Service 0 231,400 231,400
Omeo District Health 0 49,000 49,000
Orbost Regional Health 0 184,000 184,000
Otway Health & Community Services 0 80,000 80,000
Peninsula Health 8,416,000 3,520,000 11,936,000
Peter MacCallum Cancer Institute 3,060,000 333,000 3,393,000
Portland District Health 586,000 82,000 668,000
Ramsay Health Care Limited (Mildura Base Hospital) 2,500,000 762,199 3,262,199
Robinvale District Health Services 0 175,000 175,000
Rochester & Elmore District Health Service 0 159,000 159,000
Rural Northwest Health 0 290,000 290,000
Seymour District Memorial Hospital 0 668,900 668,900
South Gippsland Hospital 0 157,000 157,000
South West Healthcare 2,410,000 1,111,000 3,521,000
St Vincent's Hospital (Melbourne) 8,821,000 4,100,000 12,921,000
Stawell Regional Health 370,000 69,000 439,000
Swan Hill District Health 904,000 98,000 1,002,000
Tallangatta Health Service 0 114,000 114,000
Terang & Mortlake Health Service 0 225,400 225,400
The Royal Children's Hospital 10,939,295 1,769,000 12,708,295
The Royal Victorian Eye & Ear Hospital 2,764,000 111,000 2,875,000
The Royal Women's Hospital 5,081,000 -4,000 5,077,000
Timboon & District Healthcare Service 0 119,000 119,000
Upper Murray Health & Community Services 0 181,100 181,100
Victorian Institute of Forensic Mental Health 0 1,608,000 1,608,000
West Gippsland Healthcare Group 1,205,000 338,254 1,543,254
West Wimmera Health Service 0 420,000 420,000
Western District Health Service 1,101,000 287,000 1,388,000
Western Health 13,606,000 2,629,000 16,235,000
Wimmera Health Care Group 1,329,000 183,000 1,512,000
Yarram & District Health Service 0 147,000 147,000
Yarrawonga Health 0 251,000 251,000
Yea & District Memorial Hospital 0 86,200 86,200
Total 202,243,400 81,138,305 283,381,705

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).

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 January 2013, 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, January 2013

Local hospital network (LHN) Estimated NWAU funded in current month Estimated NWAU funded YTD Estimated annual NWAU 2012-13
Albury Wodonga Health 1,257 8,799 15,082
Alfred Health 8,606 60,242 103,275
Austin Health 7,146 50,022 85,746
Bairnsdale Regional Health Service 778 5,446 9,332
Ballarat Health Services 2,791 19,537 33,491
Barwon Health 5,296 37,072 63,553
Bass Coast Regional Health 455 2,985 5,463
Benalla Health 255 4,151 3,055
Bendigo Health Care Group 2,621 16,181 31,450
Castlemaine Health 205 1,435 2,460
Central Gippsland Health Service 790 5,530 9,483
Colac Area Health 315 2,205 3,784
Djerriwarrh Health Services 498 3,486 5,980
East Grampians Health Service 225 1,575 2,703
Eastern Health 8,286 58,002 99,431
Echuca Regional Health 528 3,696 6,335
Gippsland Southern Health Service 232 1,624 2,779
Goulburn Valley Health 1,867 13,069 22,405
Kyabram & District Health Services 205 1,435 2,454
Latrobe Regional Hospital 1,935 13,545 23,225
Maryborough District Health Service 225 1,575 2,699
Melbourne Health 7,167 50,169 86,006
Mercy Public Hospitals Inc. 3,509 24,563 42,111
Monash Health 14,712 102,984 176,546
Northeast Health Wangaratta 1,148 8,036 13,770
Northern Health 4,390 30,730 52,681
Peninsula Health 5,044 35,308 60,530
Peter MacCallum Cancer Institute 1,671 11,697 20,051
Portland District Health 322 2,254 3,868
Ramsay Health Care Limited (Mildura Base Hospital) 1,282 8,974 15,385
South West Healthcare 1,446 10,122 17,357
St Vincent's Hospital (Melbourne) 4,983 34,881 59,790
Stawell Regional Health 203 1,421 2,437
Swan Hill District Health 487 3,409 5,844
The Royal Children's Hospital 4,425 30,975 53,099
The Royal Victorian Eye & Ear Hospital 1,353 9,471 16,233
The Royal Women's Hospital 2,801 19,607 33,611
West Gippsland Healthcare Group 843 5,901 10,121
Western District Health Service 470 3,290 5,635
Western Health 7,967 55,769 95,602
Wimmera Health Care Group 765 5,355 9,179
Total 109,504 766,528 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.