Victorian report, May 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 May 2013 as part of the National Health Reform Agreement.

Participation in the National Health Funding Pool – Victoria, May 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, May 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 May 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, May 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 May 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 C'wealth
funding
263,081,512 185,281,481 71,589,446 6,210,585 263,081,512
Total state/territory
funding
188,711,605 170,475,664 24,887,739 195,363,403
Grand Total 451,793,117 355,757,145 71,589,446 31,098,324 458,444,915

See definitions and explanatory notes following table 1b.

Table 1b – State pool account transactions YTD – Victoria, May 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 May 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
2,092,553,239 * * * *
Commonwealth
Block funding
808,553,751 * * * *
Commonwealth
Other funding
69,435,388 * * * *
Total C'wealth
funding
2,970,542,377 2,092,553,239 808,553,751 69,435,388 2,970,542,377
Total state/territory
funding
2,921,014,590 2,894,655,423 26,359,168 2,921,014,591
Grand Total 5,891,556,968 4,987,208,662 808,553,751 95,794,555 5,891,556,968

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

Note:Of the total year-to-date amount of $5,891,556,968 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 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, May 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 May 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 102,261,923 102,261,923
Total 173,851,369 166,445,852 7,405,517 173,851,369

See explanatory notes following table 2b.

Table 2b – State managed fund transactions YTD – Victoria, May 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 May 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 808,553,751 808,553,751
State/territory Block funding 1,092,514,938 1,092,514,938
Total 1,901,068,689 1,865,562,753 35,505,936 1,901,068,689

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, May 2013

This table shows NHR funding and payments by service category on both a monthly and year-to-date (YTD) basis for Victoria for May 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) 373,864,437 355,757,145 5,011,967,752 4,987,208,662
Block
Mental health * * * *
Small rural and metro hospitals * * * *
Sub-acute * * * *
Teaching, training and research * * * *
Other * * * *
Total Block (SMF) 173,851,369 173,851,369 1,901,068,689 1,901,068,689
Other
Public health funding 6,210,585 6,210,585 69,435,388 69,435,388
Overdeposit 0 24,759,090 0 24,759,090
Cross-border 0 0 0 0
Interest 128,649 128,649 1,600,078 1,600,078
Total Other (Pool) 6,339,234 31,098,324 71,035,465 95,794,555
Grand Total 554,055,040 560,706,837 6,984,071,906 6,984,071,906

* 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, May 2013

This table shows NHR payments (from state, territory and Commonwealth sources) made to each local hospital network (LHN) in Victoria during May 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 4,528,000 2,339,390 6,867,390
Alexandra District Hospital 0 386,000 386,000
Alfred Health 32,301,776 11,804,151 44,105,927
Alpine Health 0 752,000 752,000
Austin Health 20,995,000 9,754,893 30,749,893
Bairnsdale Regional Health Service 2,108,000 484,162 2,592,162
Ballarat Health Services 9,809,659 4,955,172 14,764,831
Barwon Health 15,981,813 5,936,704 21,918,517
Bass Coast Regional Health 810,333 252,592 1,062,925
Beaufort & Skipton Health Service 0 227,000 227,000
Beechworth Health Service 0 201,000 201,000
Benalla Health 941,000 89,972 1,030,972
Bendigo Health Care Group 9,099,000 6,051,773 15,150,773
Boort District Health 0 121,000 121,000
Calvary Health Care Bethlehem 0 1,800,000 1,800,000
Casterton Memorial Hospital 0 249,000 249,000
Castlemaine Health 819,000 575,000 1,394,000
Central Gippsland Health Service 2,527,000 407,307 2,934,307
Cobram District Health 0 401,000 401,000
Cohuna District Hospital 0 320,000 320,000
Colac Area Health 1,109,000 267,949 1,376,949
Djerriwarrh Health Services 2,321,160 265,486 2,586,646
Dunmunkle Health Services 0 0 0
East Grampians Health Service 935,000 154,324 1,089,324
East Wimmera Health Service 0 183,000 183,000
Eastern Health 28,955,437 15,260,557 44,215,994
Echuca Regional Health 1,278,000 310,162 1,588,162
Edenhope and District Memorial Hospital 0 238,800 238,800
Gippsland Southern Health Service 904,000 124,324 1,028,324
Goulburn Valley Health 5,080,000 3,120,971 8,200,971
Heathcote Health 0 133,000 133,000
Hepburn Health Service 0 599,162 599,162
Hesse Rural Health Service 0 95,000 95,000
Heywood Rural Health 0 115,000 115,000
Inglewood & Districts Health Service 0 145,000 145,000
Kerang District Health 0 354,000 354,000
Kilmore & District Hospital 0 495,314 495,314
Kooweerup Regional Health Services 0 257,000 257,000
Kyabram & District Health Services 727,000 30,162 757,162
Kyneton District Health Service 0 425,000 425,000
Latrobe Regional Hospital 6,680,000 4,901,731 11,581,731
Lorne Community Hospital 0 140,000 140,000
Maldon Hospital 0 65,000 65,000
Mallee Track Health and Community Service 0 254,000 254,000
Mansfield District Hospital 0 361,314 361,314
Maryborough District Health Service 1,187,000 137,000 1,324,000
Melbourne Health 8,019,165 18,979,000 26,998,165
Mercy Public Hospitals Inc. 8,984,000 3,187,972 12,171,972
Monash Health 44,875,991 19,745,782 64,621,773
Moyne Health Services 0 199,000 199,000
Nathalia District Hospital 0 89,000 89,000
Northeast Health Wangaratta 4,347,000 919,296 5,266,296
Northern Health 14,739,000 4,663,916 19,402,916
Numurkah District Health Service 0 485,048 485,048
Omeo District Health 0 109,000 109,000
Orbost Regional Health 0 346,314 346,314
Otway Health & Community Services 0 144,000 144,000
Peninsula Health 14,767,000 6,931,768 21,698,768
Peter MacCallum Cancer Institute 2,650,000 863,750 3,513,750
Portland District Health 989,000 159,860 1,148,860
Ramsay Health Care Limited (Mildura Base Hospital) 3,240,000 1,387,162 4,627,162
Robinvale District Health Services 0 351,000 351,000
Rochester & Elmore District Health Service 0 354,000 354,000
Rural Northwest Health 0 552,942 552,942
Seymour District Memorial Hospital 0 852,000 852,000
South Gippsland Hospital 0 333,162 333,162
South West Healthcare 4,827,000 2,340,584 7,167,584
St Vincent's Hospital (Melbourne) 21,263,186 10,517,935 31,781,121
Stawell Regional Health 741,000 105,000 846,000
Swan Hill District Health 1,665,000 201,000 1,866,000
Tallangatta Health Service 0 188,000 188,000
Terang & Mortlake Health Service 0 326,000 326,000
The Royal Children's Hospital 21,887,906 1,913,841 23,801,747
The Royal Victorian Eye & Ear Hospital 6,010,000 151,324 6,161,324
The Royal Women's Hospital 10,184,000 177,000 10,361,000
Timboon & District Healthcare Service 0 207,000 207,000
Upper Murray Health & Community Services 0 259,000 259,000
Victorian Institute of Forensic Mental Health 0 3,218,000 3,218,000
West Gippsland Healthcare Group 2,407,000 430,296 2,837,296
West Wimmera Health Service 0 861,000 861,000
Western District Health Service 1,767,000 478,486 2,245,486
Western Health 28,136,000 5,960,000 34,096,000
Wimmera Health Care Group 1,812,000 345,497 2,157,497
Yarram & District Health Service 0 304,600 304,600
Yarrawonga Health 0 419,638 419,638
Yea & District Memorial Hospital 0 157,000 157,000
Total 352,408,426 164,756,545 517,164,971

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, May 2013

This table shows estimated state or territory hospital activity for activity-based funding services expressed as NWAU for May 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 13,827 15,082
Alfred Health 8,606 94,666 103,275
Austin Health 7,146 78,606 85,746
Bairnsdale Regional Health Service 778 8,558 9,332
Ballarat Health Services 2,791 30,701 33,491
Barwon Health 5,296 58,256 63,553
Bass Coast Regional Health 255 4,005 5,463
Benalla Health 2,621 14,635 3,055
Bendigo Health Care Group 455 18,001 31,450
Castlemaine Health 205 2,255 2,460
Central Gippsland Health Service 790 8,690 9,483
Colac Area Health 315 3,465 3,784
Djerriwarrh Health Services 498 5,478 5,980
East Grampians Health Service 225 2,475 2,703
Eastern Health 8,286 91,146 99,431
Echuca Regional Health 528 5,808 6,335
Gippsland Southern Health Service 232 2,552 2,779
Goulburn Valley Health 1,867 20,537 22,405
Kyabram & District Health Services 205 2,255 2,454
Latrobe Regional Hospital 1,935 21,285 23,225
Maryborough District Health Service 225 2,475 2,699
Melbourne Health 7,167 78,837 86,006
Mercy Public Hospitals Inc. 3,509 38,599 42,111
Monash Health 14,712 161,832 176,546
Northeast Health Wangaratta 1,148 12,628 13,770
Northern Health 4,390 48,290 52,681
Peninsula Health 5,044 55,484 60,530
Peter MacCallum Cancer Institute 1,671 18,381 20,051
Portland District Health 322 3,542 3,868
Ramsay Health Care Limited (Mildura Base Hospital) 1,282 14,102 15,385
South West Healthcare 1,446 15,906 17,357
St Vincent's Hospital (Melbourne) 4,983 54,813 59,790
Stawell Regional Health 203 2,233 2,437
Swan Hill District Health 487 5,357 5,844
The Royal Children's Hospital 4,425 48,675 53,099
The Royal Victorian Eye & Ear Hospital 1,353 14,883 16,233
The Royal Women's Hospital 2,801 30,811 33,611
West Gippsland Healthcare Group 843 9,273 10,121
Western District Health Service 470 5,170 5,635
Western Health 7,967 87,637 95,602
Wimmera Health Care Group 765 8,415 9,179
Total 109,504 1,204,544 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.