Victorian 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 Victoria for June 2013 as part of the National Health Reform Agreement.

Participation in the National Health Funding Pool – Victoria, 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.

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

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 Victorian Department of Health and Human Services 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 – Victoria, 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 Victoria for June 2013 was advised by the Victorian Department of Health 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.

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 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.

State pool account transactions

Table 1a – State pool account transactions – Victoria, June 2013

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 Victorian 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
186,514,136 186,514,137 186,514,136
Commonwealth
Block funding
72,093,390 72,093,390 72,093,390
Commonwealth
Other funding
6,253,357 6,253,357 6,253,357
Total C'wealth
funding
264,860,883 186,514,137 72,093,390 6,253,357 264,860,883
Total state/territory
funding
217,644,465 104,766,083 88,751,589 217,644,465
Grand Total 482,505,348 291,280,220 72,093,390 95,004,945 482,505,348

See definitions and explanatory notes following table 1b.

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

Following on from table 1a, this table shows year-to-date (YTD) funding paid into the Victorian state pool account by the Commonwealth and Victoria, and YTD payments out of the state pool account to local hospital networks, the state managed fund, and the Victorian Department of Health and Human Services as at June 2013. These amounts include notional payments for July, August and September 2012.

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
2,279,067,375 * * * *
Commonwealth
Block funding
880,647,141 * * * *
Commonwealth
Other funding
75,688,744 * * * *
Total C'wealth
funding
3,235,403,261 2,279,067,375 880,647,141 75,688,744 3,235,403,261
Total state/territory
funding
3,138,659,056 2,999,421,507 115,110,757 3,138,659,056
Grand Total 6,374,062,317 5,278,488,882 880,647,141 190,799,501 6,374,062,317

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

Note: Of the total year-to-date amount of $6,374,062,317 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.

Note: The amounts shown as State/Territory funding paid into the state pool account in tables 1a and 1b include cross-border receipts of $53,062,700 from New South Wales and $10,223,206 from 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 $24,126,792 to New South Wales.

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 Victoria 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 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 – Victoria, June 2013

This table shows funding paid into the Victorian state managed fund by the Commonwealth and Victoria, 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 72,093,390 72,093,390
State/territory Block funding 93,333,142 93,333,142
Total 165,426,532 161,134,302 4,292,230 165,426,532

See explanatory notes following table 2b.

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

Following on from table 2a, this table shows year-to-date (YTD) funding paid into the Victorian state managed fund by the Commonwealth and Victoria, and YTD payments out of the state managed fund to local hospital networks and other provider organisations as at June 2013. These amounts include notional payments for July, August and September 2012.

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 880,647,141 880,647,141
State/territory Block funding 1,185,848,080 1,185,848,080
Total 2,066,495,221 2,026,697,055 39,798,166 2,066,495,221

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, see National Health Reform funding and payments.

NHR funding and payments by service category

Table 3 – NHR funding and payments by service category – Victoria, June 2013

This table shows NHR funding and payments by service category on both a monthly and year-to-date (YTD) basis for Victoria 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 * * * *
Acute admitted - private * * * *
Non-admitted * * * *
Emergency department * * * *
Total ABF (Pool) 340,619,301 291,280,220 5,352,587,052 5,278,488,882
Block
Mental health * * * *
Small rural and metro hospitals * * * *
Sub-acute * * * *
Teaching, training and research * * * *
Other * * * *
Total Block (SMF) 165,426,532 165,426,532 2,066,495,221 2,066,495,221
Other
Public health funding 6,253,357 6,253,357 75,688,744 75,688,744
Overdeposit 0 88,498,194 0 113,257,284
Cross-border 63,285,906 24,126,792 63,285,906 24,126,792
Interest 253,395 253,395 1,853,473 1,853,475
Total Other (Pool) 69,792,657 119,131,737 140,828,123 214,926,295
Grand Total 575,838,490 575,838,490 7,559,910,397 7,559,910,397

* 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 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 – Victoria, June 2013

This table shows NHR payments (from state, territory and Commonwealth sources) made to each local hospital network (LHN) in Victoria 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)
($) ($) ($)
Albury Wodonga Health 4,361,178 2,211,233 6,572,411
Alexandra District Hospital 0 383,739 383,739
Alfred Health 10,578,557 8,071,436 18,649,993
Alpine Health 0 749,545 749,545
Austin Health 19,283,061 10,181,391 29,464,452
Bairnsdale Regional Health Service 3,108,837 518,339 3,627,176
Ballarat Health Services 10,652,907 4,008,801 14,661,708
Barwon Health 21,183,533 6,691,813 27,875,346
Bass Coast Regional Health 271,723 257,116 528,839
Beaufort & Skipton Health Service 0 227,642 227,642
Beechworth Health Service 0 200,043 200,043
Benalla Health 939,025 108,658 1,047,683
Bendigo Health Care Group 9,066,508 5,908,659 14,975,167
Boort District Health 0 111,715 111,715
Calvary Health Care Bethlehem 0 1,780,533 1,780,533
Casterton Memorial Hospital 0 210,001 210,001
Castlemaine Health 716,156 493,201 1,209,357
Central Gippsland Health Service 2,647,185 385,455 3,032,640
Cobram District Health 0 398,144 398,144
Cohuna District Hospital 0 312,857 312,857
Colac Area Health 1,199,333 200,278 1,399,611
Djerriwarrh Health Services 3,037,036 201,799 3,238,835
Dunmunkle Health Services 0 0 0
East Grampians Health Service 934,933 118,576 1,053,509
East Wimmera Health Service 0 180,599 180,599
Eastern Health 24,258,315 12,872,399 37,130,714
Echuca Regional Health 1,501,258 266,216 1,767,474
Edenhope and District Memorial Hospital 0 238,112 238,112
Gippsland Southern Health Service 873,930 109,784 983,714
Goulburn Valley Health 4,613,568 2,904,429 7,517,997
Heathcote Health 0 121,029 121,029
Hepburn Health Service 0 532,823 532,823
Hesse Rural Health Service 0 130,191 130,191
Heywood Rural Health 0 117,975 117,975
Inglewood & Districts Health Service 0 113,165 113,165
Kerang District Health 0 383,798 383,798
Kilmore & District Hospital 0 509,677 509,677
Kooweerup Regional Health Services 0 260,921 260,921
Kyabram & District Health Services 713,881 16,013 729,894
Kyneton District Health Service 0 274,258 274,258
Latrobe Regional Hospital 6,835,336 4,507,854 11,343,190
Lorne Community Hospital 0 135,073 135,073
Maldon Hospital 0 64,620 64,620
Mallee Track Health and Community Service 0 252,674 252,674
Mansfield District Hospital 0 376,548 376,548
Maryborough District Health Service 842,805 109,660 952,465
Melbourne Health 7,688,899 18,152,622 25,841,521
Mercy Public Hospitals Inc. 8,718,951 2,993,671 11,712,622
Monash Health 1,031,881 15,581,550 16,613,431
Moyne Health Services 0 181,341 181,341
Nathalia District Hospital 0 88,629 88,629
Northeast Health Wangaratta 3,555,234 700,041 4,255,275
Northern Health 17,791,464 5,702,815 23,494,279
Numurkah District Health Service 0 1,201,347 1,201,347
Omeo District Health 0 98,282 98,282
Orbost Regional Health 0 380,267 380,267
Otway Health & Community Services 0 144,999 144,999
Peninsula Health 17,872,017 7,915,424 25,787,441
Peter MacCallum Cancer Institute 5,062,838 1,226,618 6,289,456
Portland District Health 967,260 173,310 1,140,570
Ramsay Health Care Limited (Mildura Base Hospital) 3,223,083 1,235,702 4,458,785
Robinvale District Health Services 0 348,476 348,476
Rochester & Elmore District Health Service 0 315,504 315,504
Rural Northwest Health 0 571,584 571,584
Seymour District Memorial Hospital 0 805,135 805,135
South Gippsland Hospital 0 300,428 300,428
South West Healthcare 4,765,278 2,208,537 6,973,815
St Vincent's Hospital (Melbourne) 19,317,420 8,703,988 28,021,408
Stawell Regional Health 750,215 133,145 883,360
Swan Hill District Health 1,842,309 205,660 2,047,969
Tallangatta Health Service 0 151,494 151,494
Terang & Mortlake Health Service 0 320,608 320,608
The Royal Children's Hospital 18,507,341 9,450,768 27,958,109
The Royal Victorian Eye & Ear Hospital 4,570,663 175,138 4,745,801
The Royal Women's Hospital 10,439,707 -20,930 10,418,777
Timboon & District Healthcare Service 0 243,704 243,704
Upper Murray Health & Community Services 0 260,432 260,432
Victorian Institute of Forensic Mental Health 0 3,436,696 3,436,696
West Gippsland Healthcare Group 2,513,399 395,634 2,909,033
West Wimmera Health Service 0 734,692 734,692
Western District Health Service 1,751,245 494,518 2,245,763
Western Health 28,369,061 5,221,661 33,590,722
Wimmera Health Care Group 1,796,945 351,802 2,148,747
Yarram & District Health Service 0 297,309 297,309
Yarrawonga Health 0 413,737 413,737
Yea & District Memorial Hospital 0 157,783 157,783
Total 288,154,275 159,662,913 447,817,188

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 – Victoria, 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 Victoria.

Local hospital network (LHN) Estimated NWAU funded in current month Estimated NWAU funded YTD Estimated annual NWAU 2012-13
Albury Wodonga Health 1,257 15,084 15,082
Alfred Health 8,606 103,272 103,275
Austin Health 7,146 85,752 85,746
Bairnsdale Regional Health Service 778 9,336 9,332
Ballarat Health Services 2,791 33,492 33,491
Barwon Health 5,296 63,552 63,553
Bass Coast Regional Health 455 5,460 5,463
Benalla Health 255 3,060 3,055
Bendigo Health Care Group 2,621 31,452 31,450
Castlemaine Health 205 2,460 2,460
Central Gippsland Health Service 790 9,480 9,483
Colac Area Health 315 3,780 3,784
Djerriwarrh Health Services 498 5,976 5,980
East Grampians Health Service 225 2,700 2,703
Eastern Health 8,286 99,432 99,431
Echuca Regional Health 528 6,336 6,335
Gippsland Southern Health Service 232 2,784 2,779
Goulburn Valley Health 1,867 22,404 22,405
Kyabram & District Health Services 205 2,460 2,454
Latrobe Regional Hospital 1,935 23,220 23,225
Maryborough District Health Service 225 2,700 2,699
Melbourne Health 7,167 86,004 86,006
Mercy Public Hospitals Inc. 3,509 42,108 42,111
Monash Health 14,712 176,544 176,546
Northeast Health Wangaratta 1,148 13,776 13,770
Northern Health 4,390 52,680 52,681
Peninsula Health 5,044 60,528 60,530
Peter MacCallum Cancer Institute 1,671 20,052 20,051
Portland District Health 322 3,864 3,868
Ramsay Health Care Limited (Mildura Base Hospital) 1,282 15,384 15,385
South West Healthcare 1,446 17,352 17,357
St Vincent's Hospital (Melbourne) 4,983 59,796 59,790
Stawell Regional Health 203 2,436 2,437
Swan Hill District Health 487 5,844 5,844
The Royal Children's Hospital 4,425 53,100 53,099
The Royal Victorian Eye & Ear Hospital 1,353 16,236 16,233
The Royal Women's Hospital 2,801 33,612 33,611
West Gippsland Healthcare Group 843 10,116 10,121
Western District Health Service 470 5,640 5,635
Western Health 7,967 95,604 95,602
Wimmera Health Care Group 765 9,180 9,179
Total 109,504 1,314,048 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 the NWAU calculation, see Calculation of NWAU.