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

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 preparation for using the Pool in October 2012, Victoria transferred state funds into the Victorian state pool account in late September 2012. Victoria provided data for the September 2012 report to enable monthly reporting on NHR funding, payments and services.

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 September 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

In preparation for using the National Health Funding Pool in October 2012, Victoria transferred state funds into its state pool account in late September 2012. Victoria provided data for the September 2012 report to enable monthly reporting on NHR funding, payments and services.

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 September 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 1a – State pool account transactions – Victoria, September 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 * * * *
Commonwealth
Block funding
75,803,415 * * * *
Commonwealth
Other funding
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
590,456,127 304,266,812 0 304,266,812
Grand Total 868,866,788 500,439,682 75,803,415 6,434,376 582,677,473

* Information not provided by Victoria.
See definitions and explanatory notes following table 1b.

Note: Of the total amount of $868,886,788 shown in Table 1a as paid into the state pool account, $286,189,315 of state funding was paid by Victoria in preparation for making Pool payments from 1 October 2012. The $278,410,661 of Commonwealth funding and the remaining $304,266,812 of state funding were notional payments for the month.

No payments were made from the Victorian state pool account prior to October 2012, with payments made directly from departmental bank accounts to local hospital networks.

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 September 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, September 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
588,518,610 * * * *
Commonwealth
Block funding
227,410,245 * * * *
Commonwealth
Other funding
19,303,127 * * * *
Total Commonwealth
funding
835,231,982 588,518,610 227,410,245 19,303,127 835,231,982
Total state/territory
funding
1,251,181,326 964,992,011 0 964,992,011
Grand Total 2,086,413,308 1,553,510,621 227,410,245 19,303,127 1,800,223,993

* Information not provided by Victoria.

Note: Of the total year-to-date amount of $2,086,413,308 shown in Table 1b as paid into the Victorian state pool account, $286,189,315 of state funding was paid by Victoria in preparation for making Pool payments from 1 October 2012. The $835,231,982 of Commonwealth funding and remaining $964,992,011 of state funding are notional year-to-date payments.

No payments were made from the Victorian state pool account prior to October 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

As outlined above, under Victorian NHR arrangements, no amounts were paid into or out of the Victorian state managed fund for September 2012. All amounts shown reflect notional payments. Victoria provided data for the September 2012 report to enable monthly reporting on NHR funding, payments and services.

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 September 2012.

Table 2a – State managed fund transactions – Victoria, September 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 103,376,452 103,376,452
Total 179,179,867 176,827,431 2,352,436 179,179,867

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 September 2012. All amounts shown reflect notional payments.

Table 2b – State managed fund transactions YTD – Victoria, September 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 227,410,245 227,410,245
State/territory Block funding 294,112,544 294,112,544
Total 521,522,789 516,145,938 5,376,851 521,522,789

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 September 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, September 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) 786,628,997 500,439,682 1,839,699,936 1,553,510,621
Block
Mental health * * * *
Small rural & metro hospitals * * * *
Sub-acute * * * *
Teaching, training & research * * * *
Other * * * *
Total Block (SMF) 179,179,867 179,179,867 521,522,789 521,522,789
Other
Public health funding 6,434,376 6,434,376 19,303,127 19,303,127
Overdeposit 0 0 0 0
Cross border 0 0 0 0
Interest 0 0 0 0
Total Other (Pool) 6,434,376 6,434,376 19,303,127 19,303,127
Grand Total 972,243,240 686,053,925 2,380,525,852 2,094,336,537

* 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 September 2012.

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

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

Local hospital network (LHN) ABF component
(inc GST)
Block component
(inc GST)
Total NHR payments
(inc GST)
($) ($) ($)
Albury Wodonga Health 4,207,000 1,191,375 5,398,375
Alexandra District Hospital 0 405,780 405,780
Alfred Health 44,638,608 12,946,050 57,584,658
Alpine Health 0 768,000 768,000
Austin Health 37,564,000 12,186,550 49,750,550
Bairnsdale Regional Health Service 2,996,162 499,165 3,495,327
Ballarat Health Services 10,420,000 5,733,200 16,153,200
Barwon Health 25,915,507 7,031,250 32,946,757
Bass Coast Regional Health 1,699,296 293,085 1,992,381
Beaufort & Skipton Health Service 0 301,000 301,000
Beechworth Health Service 0 1,030,444 1,030,444
Benalla Health 1,173,255 130,550 1,303,805
Bendigo Health Care Group 9,141,000 5,950,850 15,091,850
Boort District Health 0 232,983 232,983
Calvary Health Care Bethlehem 0 2,044,900 2,044,900
Casterton Memorial Hospital 0 302,808 302,808
Castlemaine Health 783,000 613,050 1,396,050
Central Gippsland Health Service 4,668,944 638,895 5,307,839
Cobram District Health 0 442,000 442,000
Cohuna District Hospital 0 391,753 391,753
Colac Area Health 2,020,524 161,705 2,182,229
Djerriwarrh Health Services 2,364,000 273,515 2,637,515
Dunmunkle Health Services 0 78,000 78,000
East Grampians Health Service 984,000 164,160 1,148,160
East Wimmera Health Service 0 726,000 726,000
Eastern Health 37,106,799 14,275,850 51,382,649
Echuca Regional Health 1,873,000 192,315 2,065,315
Edenhope and District Memorial Hospital 0 251,000 251,000
Gippsland Southern Health Service 1,298,595 125,805 1,424,400
Goulburn Valley Health 6,654,000 2,993,300 9,647,300
Heathcote Health 0 193,725 193,725
Hepburn Health Service 0 586,000 586,000
Hesse Rural Health Service 0 186,480 186,480
Heywood Rural Health 0 239,171 239,171
Inglewood & Districts Health Service 0 167,151 167,151
Kerang District Health 0 527,031 527,031
Kilmore & District Hospital 0 963,598 963,598
Kooweerup Regional Health Services 0 356,000 356,000
Kyabram & District Health Services 1,357,611 20,000 1,377,611
Kyneton District Health Service 0 725,320 725,320
Latrobe Regional Hospital 8,915,132 4,733,950 13,649,082
Lorne Community Hospital 0 206,328 206,328
Maldon Hospital 0 76,000 76,000
Mallee Track Health and Community Service 0 285,200 285,200
Mansfield District Hospital 0 415,000 415,000
Maryborough District Health Service 885,000 86,395 971,395
Melbourne Health 36,166,634 18,949,184 55,115,818
Mercy Public Hospitals Inc. 15,414,225 3,322,605 18,736,830
Monash Health 57,047,219 18,498,535 75,545,754
Moyne Health Services 0 363,589 363,589
Nathalia District Hospital 0 134,000 134,000
Northeast Health Wangaratta 5,167,000 1,840,475 7,007,475
Northern Health 19,520,365 5,597,600 25,117,965
Numurkah District Health Service 0 457,000 457,000
Omeo District Health 0 119,000 119,000
Orbost Regional Health 0 438,140 438,140
Otway Health & Community Services 0 188,000 188,000
Peninsula Health 25,535,096 8,635,750 34,170,846
Peter MacCallum Cancer Institute 7,405,343 737,410 8,142,753
Portland District Health 1,770,983 201,000 1,971,983
Ramsay Health Care Limited (Mildura Base Hospital) 6,147,900 1,622,258 7,770,158
Robinvale District Health Services 0 521,699 521,699
Rochester & Elmore District Health Service 0 382,520 382,520
Rural Northwest Health 0 600,940 600,940
Seymour District Memorial Hospital 0 996,580 996,580
South Gippsland Hospital 0 391,566 391,566
South West Healthcare 6,757,821 2,476,345 9,234,166
St Vincent's Hospital (Melbourne) 24,187,777 10,023,365 34,211,142
Stawell Regional Health 775,000 154,125 929,125
Swan Hill District Health 1,837,000 205,085 2,042,085
Tallangatta Health Service 0 306,299 306,299
Terang & Mortlake Health Service 0 440,760 440,760
The Royal Children's Hospital 24,314,375 3,011,143 27,325,518
The Royal Victorian Eye & Ear Hospital 5,701,000 232,000 5,933,000
The Royal Women's Hospital 11,337,000 8,650 11,345,650
Timboon & District Healthcare Service 0 316,115 316,115
Upper Murray Health & Community Services 0 264,000 264,000
Victorian Institute of Forensic Mental Health 0 3,892,406 3,892,406
West Gippsland Healthcare Group 4,009,000 606,320 4,615,320
West Wimmera Health Service 0 938,850 938,850
Western District Health Service 2,390,477 564,475 2,954,952
Western Health 35,469,034 5,825,850 41,294,884
Wimmera Health Care Group 2,821,000 368,445 3,189,445
Yarram & District Health Service 0 368,660 368,660
Yarrawonga Health 0 520,000 520,000
Yea & District Memorial Hospital 0 164,000 164,000
Total 500,439,682 176,827,431 677,267,113

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 September 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, September 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 3,770 15,082
Alfred Health 8,606 25,819 103,275
Austin Health 7,146 21,437 85,746
Bairnsdale Regional Health Service 778 2,333 9,332
Ballarat Health Services 2,791 8,373 33,491
Barwon Health 5,296 15,888 63,553
Bass Coast Regional Health 455 1,366 5,463
Benalla Health 255 764 3,055
Bendigo Health Care Group 2,621 7,862 31,450
Castlemaine Health 205 615 2,460
Central Gippsland Health Service 790 2,371 9,483
Colac Area Health 315 946 3,784
Djerriwarrh Health Services 498 1,495 5,980
East Grampians Health Service 225 676 2,703
Eastern Health 8,286 24,858 99,431
Echuca Regional Health 528 1,584 6,335
Gippsland Southern Health Service 232 695 2,779
Goulburn Valley Health 1,867 5,601 22,405
Kyabram & District Health Services 205 614 2,454
Latrobe Regional Hospital 1,935 5,806 23,225
Maryborough District Health Service 225 675 2,699
Melbourne Health 7,167 21,501 86,006
Mercy Public Hospitals Inc. 3,509 10,528 42,111
Monash Health 14,712 44,136 176,546
Northeast Health Wangaratta 1,148 3,443 13,770
Northern Health 4,390 13,170 52,681
Peninsula Health 5,044 15,132 60,530
Peter MacCallum Cancer Institute 1,671 5,013 20,051
Portland District Health 322 967 3,868
Ramsay Health Care Limited (Mildura Base Hospital) 1,282 3,846 15,385
South West Healthcare 1,446 4,339 17,357
St Vincent's Hospital (Melbourne) 4,983 14,948 59,790
Stawell Regional Health 203 609 2,437
Swan Hill District Health 487 1,461 5,844
The Royal Children's Hospital 4,425 13,275 53,099
The Royal Victorian Eye & Ear Hospital 1,353 4,058 16,233
The Royal Women's Hospital 2,801 8,403 33,611
West Gippsland Healthcare Group 843 2,530 10,121
Western District Health Service 470 1,409 5,635
Western Health 7,967 23,900 95,602
Wimmera Health Care Group 765 2,295 9,179
Total 109,503 328,510 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.