Victorian report, November 2012

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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 shows monthly and year-to-date (YTD) National Health Reform (NHR) funding and payments for Victoria for November 2012 as part of the National Health Reform Agreement.

Participation in the National Health Funding Pool

In signing the National Health Reform Agreement (the Agreement), it was the intention of all states and territories that they would have the necessary legislation in place to enable them to participate in the National Health Funding Pool from 1 July 2012.

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

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

Local hospital networks and National Health Reform

Under the Agreement, local hospital networks receive funding for the following public hospital services:

  • All admitted and non-admitted services
  • All emergency department services provided by a recognised emergency department
  • Other outpatient, mental health, sub-acute services and other services that could reasonably be considered a public hospital service.

Note: Local hospital networks also receive funding from other sources, including the Commonwealth, states and territories, and third parties for the provision of other specific functions and services outside the scope of the Agreement, for example dental services, primary care, home and community care, residential aged care and pharmaceuticals. For further information on total funding to a particular local hospital network, contact the Victorian Department of Health to view the service agreement for that local hospital network.

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

Basis for National Health Reform payments

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

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

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

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

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

Reference information

The financial information outlined in the following report is categorised as:

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

Transactions on the state pool account

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

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

NHR funding by source Paid into state pool account Paid out of state pool account
To local hospital networks To state
managed
fund
To state
health department
Total paid out
($) ($) ($) ($) ($)
Commonwealth
ABF funding
196,172,870 196,172,870 196,172,870
Commonwealth
Block funding
75,803,415 75,803,415 75,803,415
Commonwealth
Other funding
6,434,376 6,434,376 6,434,376
Total Commonwealth
funding
278,410,661 196,172,870 75,803,415 6,434,376 278,410,661
Total state/territory
funding
517,034,984 279,096,696 127,933 279,224,628
Grand Total 795,445,645 475,269,566 75,803,415 6,562,308 557,635,289

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

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

NHR funding by source Paid into state pool account YTD Paid out of state pool account YTD
To local hospital networks To state managed
fund
To state health department Total paid out
YTD
($) ($) ($) ($) ($)
Commonwealth
ABF funding
980,864,351 * * * *
Commonwealth
Block funding
379,017,076 * * * *
Commonwealth
Other funding
32,171,878 * * * *
Total Commonwealth
funding
1,392,053,304 980,864,351 379,017,076 32,171,878 1,392,053,304
Total state/territory
funding
1,789,024,058 1,546,424,352 207,909 1,546,632,260
Grand Total 3,181,077,362 2,527,288,702 379,017,076 32,379,787 2,938,685,565

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

Note: Of the total year-to-date amount of $3,181,077,362 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 $2,938,685,565 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 state or territory funding is not paid out of state pool account to the state managed fund.

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 November 2012.

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

NHR funding by source Paid into state managed fund Paid out of state managed fund
To local hospital networks To Other Total paid out
($) ($) ($) ($)
Commonwealth Block funding 75,803,415 75,803,415
State/territory Block funding 106,237,553 106,237,553
Total 182,040,968 178,839,507 3,201,461 182,040,968

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

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

NHR funding by source Paid into state managed fund YTD Paid out of state managed fund YTD
To local hospital networks To Other Total paid out
YTD
($) ($) ($) ($)
Commonwealth Block funding 379,017,076 379,017,076
State/territory Block funding 496,190,943 496,190,943
Total 875,208,018 864,641,369 10,566,650 875,208,018

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 November 2012.

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

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

Service category NHR funding NHR payments NHR funding
YTD
NHR payments
YTD
($) ($) ($) ($)
ABF
Acute admitted - public * * * *
Acute admitted - private * * * *
Non-admitted * * * *
Emergency department * * * *
Total ABF (Pool) 713,079,921 475,269,566 2,769,680,499 2,527,288,702
Block
Mental health * * * *
Small rural & metro hospitals * * * *
Sub-acute * * * *
Teaching, training & research * * * *
Other * * * *
Total Block (SMF) 182,040,968 182,040,968 875,208,018 875,208,018
Other
Public health funding 6,434,376 6,434,376 32,171,878 32,171,878
Overdeposit 0 0 0 0
Cross border 0 0 0 0
Interest 127,933 127,933 207,909 207,909
Total Other (Pool) 6,562,308 6,562,308 32,379,787 32,379,787
Grand Total 901,683,198 663,872,842 3,677,268,304 3,434,876,508

* 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 November 2012.

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

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

Local hospital network (LHN) ABF component
(inc GST)
Block component
(inc GST)
Total NHR payments
(inc GST)
($) ($) ($)
Albury Wodonga Health 4,551,000 1,827,000 6,378,000
Alexandra District Hospital 0 395,000 395,000
Alfred Health 35,470,000 10,317,041 45,787,041
Alpine Health 0 767,000 767,000
Austin Health 32,255,960 10,246,967 42,502,927
Bairnsdale Regional Health Service 3,558,400 736,000 4,294,400
Ballarat Health Services 10,074,000 5,888,733 15,962,733
Barwon Health 19,291,200 8,035,280 27,326,480
Bass Coast Regional Health 1,454,000 439,000 1,893,000
Beaufort & Skipton Health Service 0 292,000 292,000
Beechworth Health Service 0 468,213 468,213
Benalla Health 968,000 132,000 1,100,000
Bendigo Health Care Group 9,625,000 7,492,455 17,117,455
Boort District Health 0 150,000 150,000
Calvary Health Care Bethlehem 0 2,003,100 2,003,100
Casterton Memorial Hospital 0 246,000 246,000
Castlemaine Health 882,000 573,000 1,455,000
Central Gippsland Health Service 3,027,256 527,000 3,554,256
Cobram District Health 0 421,000 421,000
Cohuna District Hospital 0 339,000 339,000
Colac Area Health 1,259,000 132,000 1,391,000
Djerriwarrh Health Services 2,642,412 203,000 2,845,412
Dunmunkle Health Services 0 71,000 71,000
East Grampians Health Service 1,097,460 349,000 1,446,460
East Wimmera Health Service 0 698,000 698,000
Eastern Health 36,796,330 15,486,900 52,283,230
Echuca Regional Health 2,013,640 350,000 2,363,640
Edenhope and District Memorial Hospital 0 246,000 246,000
Gippsland Southern Health Service 1,002,000 112,000 1,114,000
Goulburn Valley Health 7,485,800 5,100,816 12,586,616
Heathcote Health 0 135,000 135,000
Hepburn Health Service 0 565,000 565,000
Hesse Rural Health Service 0 129,000 129,000
Heywood Rural Health 0 164,000 164,000
Inglewood & Districts Health Service 0 123,000 123,000
Kerang District Health 0 423,000 423,000
Kilmore & District Hospital 0 730,000 730,000
Kooweerup Regional Health Services 0 350,000 350,000
Kyabram & District Health Services 751,000 15,000 766,000
Kyneton District Health Service 0 611,000 611,000
Latrobe Regional Hospital 7,022,000 5,307,000 12,329,000
Lorne Community Hospital 0 159,000 159,000
Maldon Hospital 0 73,000 73,000
Mallee Track Health and Community Service 0 280,000 280,000
Mansfield District Hospital 0 533,000 533,000
Maryborough District Health Service 859,000 72,000 931,000
Melbourne Health 26,750,800 17,992,180 44,742,980
Mercy Public Hospitals Inc. 14,521,100 3,400,100 17,921,200
Monash Health 61,863,356 18,812,673 80,676,029
Moyne Health Services 0 250,000 250,000
Nathalia District Hospital 0 128,000 128,000
Northeast Health Wangaratta 4,357,320 2,026,371 6,383,691
Northern Health 18,649,400 5,159,347 23,808,747
Numurkah District Health Service 0 881,935 881,935
Omeo District Health 0 122,000 122,000
Orbost Regional Health 0 430,000 430,000
Otway Health & Community Services 0 189,000 189,000
Peninsula Health 18,377,600 8,182,268 26,559,868
Peter MacCallum Cancer Institute 7,265,000 1,237,500 8,502,500
Portland District Health 1,329,000 163,000 1,492,000
Ramsay Health Care Limited (Mildura Base Hospital) 6,150,100 2,097,700 8,247,800
Robinvale District Health Services 0 380,000 380,000
Rochester & Elmore District Health Service 0 362,500 362,500
Rural Northwest Health 0 593,000 593,000
Seymour District Memorial Hospital 0 846,000 846,000
South Gippsland Hospital 0 348,000 348,000
South West Healthcare 7,044,504 2,549,253 9,593,757
St Vincent's Hospital (Melbourne) 27,125,919 10,888,075 38,013,994
Stawell Regional Health 763,000 141,000 904,000
Swan Hill District Health 1,861,460 259,000 2,120,460
Tallangatta Health Service 0 231,000 231,000
Terang & Mortlake Health Service 0 369,000 369,000
The Royal Children's Hospital 29,598,869 2,608,000 32,206,869
The Royal Victorian Eye & Ear Hospital 6,602,400 252,000 6,854,400
The Royal Women's Hospital 19,816,000 88,900 19,904,900
Timboon & District Healthcare Service 0 266,000 266,000
Upper Murray Health & Community Services 0 267,000 267,000
Victorian Institute of Forensic Mental Health 0 3,314,000 3,314,000
West Gippsland Healthcare Group 3,504,680 576,000 4,080,680
West Wimmera Health Service 0 859,000 859,000
Western District Health Service 1,924,000 638,000 2,562,000
Western Health 32,940,600 6,619,200 39,559,800
Wimmera Health Care Group 2,739,000 524,000 3,263,000
Yarram & District Health Service 0 358,000 358,000
Yarrawonga Health 0 553,000 553,000
Yea & District Memorial Hospital 0 164,000 164,000
Total 475,269,566 178,839,507 654,109,073

A local hospital network (LHN) is an organisation that provides public hospital services in accordance with the National Health Reform Agreement. A local hospital network can contain one or more hospitals, and is usually defined as a business group, geographical area or community. Every Australian public hospital is part of a local hospital network.

NHR payments in this table are GST exclusive to enable comparability of NHR payments to each local hospital network within the jurisdiction and allow for reconciliation against the Table 1a for each local hospital network report.

Note: The majority of government funding to local hospital networks is not subject to GST. However in some cases hospital funding to non-government entities does attract GST, for example, denominational hospitals, privately and commercially owned health facilities, or any other non-government third party provider of health services or related supplies.

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

Estimated monthly, YTD and annual NWAU by LHN

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

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

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

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

Local hospital network (LHN) Estimated NWAU funded in current month Estimated NWAU funded YTD Estimated annual NWAU 2012-13
Albury Wodonga Health 1,257 6,284 15,082
Alfred Health 8,606 43,031 103,275
Austin Health 7,146 35,728 85,746
Bairnsdale Regional Health Service 778 3,888 9,332
Ballarat Health Services 2,791 13,955 33,491
Barwon Health 5,296 26,480 63,553
Bass Coast Regional Health 455 2,276 5,463
Benalla Health 255 1,273 3,055
Bendigo Health Care Group 2,621 13,104 31,450
Castlemaine Health 205 1,025 2,460
Central Gippsland Health Service 790 3,951 9,483
Colac Area Health 315 1,577 3,784
Djerriwarrh Health Services 498 2,492 5,980
East Grampians Health Service 225 1,126 2,703
Eastern Health 8,286 41,430 99,431
Echuca Regional Health 528 2,640 6,335
Gippsland Southern Health Service 232 1,158 2,779
Goulburn Valley Health 1,867 9,335 22,405
Kyabram & District Health Services 205 1,023 2,454
Latrobe Regional Hospital 1,935 9,677 23,225
Maryborough District Health Service 225 1,125 2,699
Melbourne Health 7,167 35,836 86,006
Mercy Public Hospitals Inc. 3,509 17,546 42,111
Monash Health 14,712 73,561 176,546
Northeast Health Wangaratta 1,148 5,738 13,770
Northern Health 4,390 21,950 52,681
Peninsula Health 5,044 25,221 60,530
Peter MacCallum Cancer Institute 1,671 8,355 20,051
Portland District Health 322 1,612 3,868
Ramsay Health Care Limited (Mildura Base Hospital) 1,282 6,410 15,385
South West Healthcare 1,446 7,232 17,357
St Vincent's Hospital (Melbourne) 4,983 24,913 59,790
Stawell Regional Health 203 1,015 2,437
Swan Hill District Health 487 2,435 5,844
The Royal Children's Hospital 4,425 22,125 53,099
The Royal Victorian Eye & Ear Hospital 1,353 6,764 16,233
The Royal Women's Hospital 2,801 14,005 33,611
West Gippsland Healthcare Group 843 4,217 10,121
Western District Health Service 470 2,348 5,635
Western Health 7,967 39,834 95,602
Wimmera Health Care Group 765 3,825 9,179
Total 109,503 547,517 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.