Victorian report, October 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 October 2012 as part of the National Health Reform Agreement.

As part of the transition to National Health Reform Funding arrangements, the reported funding includes 'notional payments' paid into and out of the Victorian state pool account and state managed fund prior to the Victorian enabling legislation being proclaimed for operation. Reporting in this way enables national comparability for month and year-to-date reporting periods.

Participation and provision of data

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. Under the legislation envisaged by the Agreement, states and territories using the Pool are required to provide data on NHR funding, payments and services to be published by the Administrator of the National Health Funding Pool.

The relevant Victorian health reform legislation was proclaimed for operation from 1 October 2012. Prior to this date, Victoria received equivalent funding directly from the Commonwealth Treasury, and made payments directly from departmental bank accounts to local hospital networks (LHNs). In October 2012, Victoria used the National Health Funding Pool to process NHR funding and payments, and provided the data required for the Administrator's October 2012 monthly reports.

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 October 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 between 1 July and 1 October 2012. 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 October 2012.

Table 1a – State pool account transactions – Victoria, October 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
20,807,746 302,335,645 79,976 302,415,622
Grand Total 299,218,407 498,508,515 75,803,415 6,514,352 580,826,283

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 October 2012. The table includes 'notional payments' paid into and out of the Victorian state pool account prior to the Victorian legislation being proclaimed for operation from 1 October 2012.

Table 1b – State pool account transactions YTD – Victoria, October 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
784,691,480 * * * *
Commonwealth
Block funding
303,213,660 * * * *
Commonwealth
Other funding
25,737,502 * * * *
Total Commonwealth
funding
1,113,642,643 784,691,480 303,213,660 25,737,502 1,113,642,643
Total state/territory
funding
1,271,989,074 1,267,327,656 79,976 1,267,407,632
Grand Total 2,385,631,717 2,052,019,136 303,213,660 25,817,479 2,381,050,276

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

Note: Of the total year-to-date amount of $2,385,631,717 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 $2,381,050,276 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 October 2012.

Table 2a – State managed fund transactions – Victoria, October 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 95,840,847 95,840,847
Total 171,644,262 169,655,924 1,988,338 171,644,262

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

Table 2b – State managed fund transactions YTD – Victoria, October 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 303,213,660 303,213,660
State/territory Block funding 389,953,390 389,953,390
Total 693,167,050 685,801,862 7,365,189 693,167,050

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 October 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, October 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) 216,900,640 498,508,515 2,056,600,578 2,052,019,136
Block
Mental health * * * *
Small rural & metro hospitals * * * *
Sub-acute * * * *
Teaching, training & research * * * *
Other * * * *
Total Block (SMF) 171,644,262 171,644,262 693,167,050 693,167,050
Other
Public health funding 6,434,376 6,434,376 25,737,502 25,737,502
Overdeposit 0 0 0 0
Cross border 0 0 0 0
Interest 79,976 79,976 79,976 79,976
Total Other (Pool) 6,514,352 6,514,352 25,817,479 25,817,479
Grand Total 395,059,254 676,667,129 2,775,585,108 2,771,003,666

* 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 October 2012.

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

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

Local hospital network (LHN) ABF component
(inc GST)
Block component
(inc GST)
Total NHR payments
(inc GST)
($) ($) ($)
Albury Wodonga Health 5,330,332 2,912,000 8,242,332
Alexandra District Hospital 0 430,416 430,416
Alfred Health 34,929,656 9,194,000 44,123,656
Alpine Health 0 769,000 769,000
Austin Health 36,403,976 9,707,000 46,110,976
Bairnsdale Regional Health Service 2,324,000 483,000 2,807,000
Ballarat Health Services 14,318,010 4,785,000 19,103,010
Barwon Health 19,248,892 6,116,000 25,364,892
Bass Coast Regional Health 1,457,000 277,000 1,734,000
Beaufort & Skipton Health Service 0 363,663 363,663
Beechworth Health Service 0 453,000 453,000
Benalla Health 967,000 120,000 1,087,000
Bendigo Health Care Group 10,386,546 6,516,500 16,903,046
Boort District Health 0 155,000 155,000
Calvary Health Care Bethlehem 0 2,348,287 2,348,287
Casterton Memorial Hospital 0 245,000 245,000
Castlemaine Health 803,000 441,550 1,244,550
Central Gippsland Health Service 2,739,000 442,000 3,181,000
Cobram District Health 0 410,000 410,000
Cohuna District Hospital 0 342,000 342,000
Colac Area Health 1,206,000 126,000 1,332,000
Djerriwarrh Health Services 2,556,551 204,000 2,760,551
Dunmunkle Health Services 0 119,644 119,644
East Grampians Health Service 1,186,526 119,000 1,305,526
East Wimmera Health Service 0 885,179 885,179
Eastern Health 34,146,660 15,152,500 49,299,160
Echuca Regional Health 2,259,659 181,000 2,440,659
Edenhope and District Memorial Hospital 0 298,729 298,729
Gippsland Southern Health Service 1,004,000 108,000 1,112,000
Goulburn Valley Health 8,555,281 3,140,000 11,695,281
Heathcote Health 0 134,000 134,000
Hepburn Health Service 0 744,396 744,396
Hesse Rural Health Service 0 127,000 127,000
Heywood Rural Health 0 163,000 163,000
Inglewood & Districts Health Service 0 125,000 125,000
Kerang District Health 0 427,000 427,000
Kilmore & District Hospital 0 695,000 695,000
Kooweerup Regional Health Services 0 423,740 423,740
Kyabram & District Health Services 751,000 12,000 763,000
Kyneton District Health Service 0 613,000 613,000
Latrobe Regional Hospital 8,383,098 4,733,000 13,116,098
Lorne Community Hospital 0 159,000 159,000
Maldon Hospital 0 116,183 116,183
Mallee Track Health and Community Service 0 277,000 277,000
Mansfield District Hospital 0 618,049 618,049
Maryborough District Health Service 1,363,000 103,000 1,466,000
Melbourne Health 35,088,952 19,443,025 54,531,977
Mercy Public Hospitals Inc. 16,529,882 3,348,400 19,878,282
Monash Health 80,116,121 20,823,206 100,939,327
Moyne Health Services 0 246,000 246,000
Nathalia District Hospital 0 168,432 168,432
Northeast Health Wangaratta 7,029,806 1,801,000 8,830,806
Northern Health 19,597,616 5,835,000 25,432,616
Numurkah District Health Service 0 459,000 459,000
Omeo District Health 0 122,000 122,000
Orbost Regional Health 0 441,810 441,810
Otway Health & Community Services 0 192,000 192,000
Peninsula Health 18,014,802 6,776,000 24,790,802
Peter MacCallum Cancer Institute 6,293,836 572,750 6,866,586
Portland District Health 1,346,000 169,000 1,515,000
Ramsay Health Care Limited (Mildura Base Hospital) 6,149,000 1,607,100 7,756,100
Robinvale District Health Services 0 379,000 379,000
Rochester & Elmore District Health Service 0 344,000 344,000
Rural Northwest Health 0 596,000 596,000
Seymour District Memorial Hospital 0 820,000 820,000
South Gippsland Hospital 0 351,000 351,000
South West Healthcare 5,398,000 2,278,000 7,676,000
St Vincent's Hospital (Melbourne) 23,284,469 9,304,900 32,589,369
Stawell Regional Health 891,037 136,000 1,027,037
Swan Hill District Health 1,723,000 185,000 1,908,000
Tallangatta Health Service 0 232,000 232,000
Terang & Mortlake Health Service 0 371,000 371,000
The Royal Children's Hospital 27,124,551 2,777,000 29,901,551
The Royal Victorian Eye & Ear Hospital 6,052,824 191,000 6,243,824
The Royal Women's Hospital 11,471,820 9,000 11,480,820
Timboon & District Healthcare Service 0 265,000 265,000
Upper Murray Health & Community Services 0 266,000 266,000
Victorian Institute of Forensic Mental Health 0 3,313,000 3,313,000
West Gippsland Healthcare Group 3,024,336 390,000 3,414,336
West Wimmera Health Service 0 1,229,913 1,229,913
Western District Health Service 2,110,000 531,000 2,641,000
Western Health 33,420,822 5,939,000 39,359,822
Wimmera Health Care Group 3,522,455 353,000 3,875,455
Yarram & District Health Service 0 359,000 359,000
Yarrawonga Health 0 522,000 522,000
Yea & District Memorial Hospital 0 194,552 194,552
Total 498,508,515 169,655,924 668,164,439

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 October 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, October 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 5,027 15,082
Alfred Health 8,606 34,425 103,275
Austin Health 7,146 28,582 85,746
Bairnsdale Regional Health Service 778 3,111 9,332
Ballarat Health Services 2,791 11,164 33,491
Barwon Health 5,296 21,184 63,553
Bass Coast Regional Health 455 1,821 5,463
Benalla Health 255 1,018 3,055
Bendigo Health Care Group 2,621 10,483 31,450
Castlemaine Health 205 820 2,460
Central Gippsland Health Service 790 3,161 9,483
Colac Area Health 315 1,261 3,784
Djerriwarrh Health Services 498 1,993 5,980
East Grampians Health Service 225 901 2,703
Eastern Health 8,286 33,144 99,431
Echuca Regional Health 528 2,112 6,335
Gippsland Southern Health Service 232 926 2,779
Goulburn Valley Health 1,867 7,468 22,405
Kyabram & District Health Services 205 818 2,454
Latrobe Regional Hospital 1,935 7,742 23,225
Maryborough District Health Service 225 900 2,699
Melbourne Health 7,167 28,669 86,006
Mercy Public Hospitals Inc. 3,509 14,037 42,111
Monash Health 14,712 58,849 176,546
Northeast Health Wangaratta 1,148 4,590 13,770
Northern Health 4,390 17,560 52,681
Peninsula Health 5,044 20,177 60,530
Peter MacCallum Cancer Institute 1,671 6,684 20,051
Portland District Health 322 1,289 3,868
Ramsay Health Care Limited (Mildura Base Hospital) 1,282 5,128 15,385
South West Healthcare 1,446 5,786 17,357
St Vincent's Hospital (Melbourne) 4,983 19,930 59,790
Stawell Regional Health 203 812 2,437
Swan Hill District Health 487 1,948 5,844
The Royal Children's Hospital 4,425 17,700 53,099
The Royal Victorian Eye & Ear Hospital 1,353 5,411 16,233
The Royal Women's Hospital 2,801 11,204 33,611
West Gippsland Healthcare Group 843 3,374 10,121
Western District Health Service 470 1,878 5,635
Western Health 7,967 31,867 95,602
Wimmera Health Care Group 765 3,060 9,179
Total 109,503 438,014 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.