Victorian report, March 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 March 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 March 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.

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 March 2013.

Table 1a – State pool account transactions – Victoria, March 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
185,281,481 185,281,481 185,281,481
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
223,451,700 227,823,857 245,796 228,069,653
Grand Total 486,533,213 413,105,338 71,589,446 6,456,381 491,151,165

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

Table 1b – State pool account transactions YTD – Victoria, March 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
1,721,990,276 * * * *
Commonwealth
Block funding
665,374,859 * * * *
Commonwealth
Other funding
57,014,218 * * * *
Total Commonwealth
funding
2,444,379,353 1,721,990,276 665,374,859 57,014,218 2,444,379,353
Total state/territory
funding
2,471,021,929 2,462,581,303 1,220,522 2,463,801,824
Grand Total 4,915,401,282 4,184,571,579 665,374,859 58,234,739 4,908,181,177

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

Note: Of the total year-to-date amount of $4,915,401,282 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 $4,908,181,177 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 March 2013.

Table 2a – State managed fund transactions – Victoria, March 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 96,197,247 96,197,247
Total 167,786,693 166,354,010 1,432,683 167,786,693

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

Table 2b – State managed fund transactions YTD – Victoria, March 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 665,374,859 665,374,859
State/territory Block funding 890,170,006 890,170,006
Total 1,555,544,865 1,530,613,251 24,931,614 1,555,544,865

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 March 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, March 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) 408,487,385 413,105,338 4,191,791,684 4,184,571,579
Block
Mental health * * * *
Small rural & metro hospitals * * * *
Sub-acute * * * *
Teaching, training & research * * * *
Other * * * *
Total Block (SMF) 167,786,693 167,786,693 1,555,544,865 1,555,544,865
Other
Public health funding 6,210,585 6,210,585 57,014,218 57,014,218
Overdeposit 0 0 0 0
Cross border 0 0 0 0
Interest 245,796 245,796 1,220,522 1,220,522
Total Other (Pool) 6,456,381 6,456,381 58,234,739 58,234,739
Grand Total 582,730,460 587,348,412 5,805,571,288 5,798,351,183

* 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 March 2013.

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

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

Local hospital network (LHN) ABF component
(ex GST)
Block component
(ex GST)
Total NHR payments
(ex GST)
($) ($) ($)
Albury Wodonga Health 4,527,000 2,625,000 7,152,000
Alexandra District Hospital 0 381,000 381,000
Alfred Health 33,417,000 9,691,205 43,108,205
Alpine Health 0 743,000 743,000
Austin Health 28,601,000 9,801,184 38,402,184
Bairnsdale Regional Health Service 2,847,000 635,000 3,482,000
Ballarat Health Services 9,763,000 5,155,861 14,918,861
Barwon Health 20,036,000 7,298,500 27,334,500
Bass Coast Regional Health 1,318,000 371,000 1,689,000
Beaufort & Skipton Health Service 0 286,000 286,000
Beechworth Health Service 0 203,000 203,000
Benalla Health 942,000 115,000 1,057,000
Bendigo Health Care Group 9,215,000 5,424,000 14,639,000
Boort District Health 0 140,000 140,000
Calvary Health Care Bethlehem 0 1,773,000 1,773,000
Casterton Memorial Hospital 0 212,000 212,000
Castlemaine Health 729,000 495,000 1,224,000
Central Gippsland Health Service 2,523,000 440,000 2,963,000
Cobram District Health 0 399,000 399,000
Cohuna District Hospital 0 318,000 318,000
Colac Area Health 1,151,000 145,000 1,296,000
Djerriwarrh Health Services 2,288,000 198,000 2,486,000
Dunmunkle Health Services 0 70,000 70,000
East Grampians Health Service 934,000 118,000 1,052,000
East Wimmera Health Service 0 676,000 676,000
Eastern Health 27,976,000 13,140,725 41,116,725
Echuca Regional Health 2,506,000 424,780 2,930,780
Edenhope and District Memorial Hospital 0 235,000 235,000
Gippsland Southern Health Service 903,000 96,930 999,930
Goulburn Valley Health 6,384,000 3,361,000 9,745,000
Heathcote Health 0 154,000 154,000
Hepburn Health Service 0 548,000 548,000
Hesse Rural Health Service 0 93,000 93,000
Heywood Rural Health 0 133,000 133,000
Inglewood & Districts Health Service 0 112,000 112,000
Kerang District Health 0 396,000 396,000
Kilmore & District Hospital 0 673,000 673,000
Kooweerup Regional Health Services 0 296,000 296,000
Kyabram & District Health Services 1,093,000 19,000 1,112,000
Kyneton District Health Service 0 576,000 576,000
Latrobe Regional Hospital 6,642,000 5,034,723 11,676,723
Lorne Community Hospital 0 137,000 137,000
Maldon Hospital 0 63,000 63,000
Mallee Track Health and Community Service 0 255,000 255,000
Mansfield District Hospital 0 378,000 378,000
Maryborough District Health Service 826,000 68,000 894,000
Melbourne Health 24,522,426 17,863,000 42,385,426
Mercy Public Hospitals Inc. 12,977,000 2,985,000 15,962,000
Monash Health 48,430,000 17,319,250 65,749,250
Moyne Health Services 0 200,000 200,000
Nathalia District Hospital 0 127,000 127,000
Northeast Health Wangaratta 3,885,000 927,000 4,812,000
Northern Health 15,856,469 4,962,000 20,818,469
Numurkah District Health Service 0 546,241 546,241
Omeo District Health 0 97,000 97,000
Orbost Regional Health 0 365,000 365,000
Otway Health & Community Services 0 162,000 162,000
Peninsula Health 20,795,000 8,672,000 29,467,000
Peter MacCallum Cancer Institute 5,705,000 715,000 6,420,000
Portland District Health 1,231,000 162,000 1,393,000
Ramsay Health Care Limited (Mildura Base Hospital) 4,999,000 1,732,793 6,731,793
Robinvale District Health Services 0 351,000 351,000
Rochester & Elmore District Health Service 0 316,000 316,000
Rural Northwest Health 0 579,000 579,000
Seymour District Memorial Hospital 0 792,000 792,000
South Gippsland Hospital 0 310,000 310,000
South West Healthcare 5,517,727 3,252,433 8,770,160
St Vincent's Hospital (Melbourne) 21,998,000 10,113,605 32,111,605
Stawell Regional Health 741,000 135,000 876,000
Swan Hill District Health 1,807,000 303,745 2,110,745
Tallangatta Health Service 0 225,000 225,000
Terang & Mortlake Health Service 0 322,000 322,000
The Royal Children's Hospital 21,864,316 3,566,000 25,430,316
The Royal Victorian Eye & Ear Hospital 4,618,000 187,000 4,805,000
The Royal Women's Hospital 10,177,000 11,000 10,188,000
Timboon & District Healthcare Service 0 233,000 233,000
Upper Murray Health & Community Services 0 259,000 259,000
Victorian Institute of Forensic Mental Health 0 3,219,000 3,219,000
West Gippsland Healthcare Group 2,879,000 480,000 3,359,000
West Wimmera Health Service 0 833,000 833,000
Western District Health Service 2,199,000 782,946 2,981,946
Western Health 31,632,000 6,289,649 37,921,649
Wimmera Health Care Group 2,653,000 430,000 3,083,000
Yarram & District Health Service 0 297,000 297,000
Yarrawonga Health 0 507,000 507,000
Yea & District Memorial Hospital 0 156,000 156,000
Total 409,107,938 164,693,570 573,801,508

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 March 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, March 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 11,313 15,082
Alfred Health 8,606 77,454 103,275
Austin Health 7,146 64,314 85,746
Bairnsdale Regional Health Service 778 7,002 9,332
Ballarat Health Services 2,791 25,119 33,491
Barwon Health 5,296 47,664 63,553
Bass Coast Regional Health 255 3,495 5,463
Benalla Health 2,621 9,393 3,055
Bendigo Health Care Group 455 17,091 31,450
Castlemaine Health 205 1,845 2,460
Central Gippsland Health Service 790 7,110 9,483
Colac Area Health 315 2,835 3,784
Djerriwarrh Health Services 498 4,482 5,980
East Grampians Health Service 225 2,025 2,703
Eastern Health 8,286 74,574 99,431
Echuca Regional Health 528 4,752 6,335
Gippsland Southern Health Service 232 2,088 2,779
Goulburn Valley Health 1,867 16,803 22,405
Kyabram & District Health Services 205 1,845 2,454
Latrobe Regional Hospital 1,935 17,415 23,225
Maryborough District Health Service 225 2,025 2,699
Melbourne Health 7,167 64,503 86,006
Mercy Public Hospitals Inc. 3,509 31,581 42,111
Monash Health 14,712 132,408 176,546
Northeast Health Wangaratta 1,148 10,332 13,770
Northern Health 4,390 39,510 52,681
Peninsula Health 5,044 45,396 60,530
Peter MacCallum Cancer Institute 1,671 15,039 20,051
Portland District Health 322 2,898 3,868
Ramsay Health Care Limited (Mildura Base Hospital) 1,282 11,538 15,385
South West Healthcare 1,446 13,014 17,357
St Vincent's Hospital (Melbourne) 4,983 44,847 59,790
Stawell Regional Health 203 1,827 2,437
Swan Hill District Health 487 4,383 5,844
The Royal Children's Hospital 4,425 39,825 53,099
The Royal Victorian Eye & Ear Hospital 1,353 12,177 16,233
The Royal Women's Hospital 2,801 25,209 33,611
West Gippsland Healthcare Group 843 7,587 10,121
Western District Health Service 470 4,230 5,635
Western Health 7,967 71,703 95,602
Wimmera Health Care Group 765 6,885 9,179
Total 109,504 985,536 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.