Western Australian report, December 2015

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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 Western Australia for December 2015 as part of the National Health Reform Agreement.

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. An LHN 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 an LHN.

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, LHNs 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: LHNs 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 LHN, contact the WA Department of Health to view the service agreement for that LHN.

Basis for National Health Reform payments – Western Australia, December 2015

For the basis of the Commonwealth contribution to NHR funding, see Basis of Commonwealth NHR funding, 2015-16.

The basis used to determine NHR payments to LHNs in Western Australia for December 2015 is as follows:

The 2015-16 annual funding allocations have been developed using the Western Australian Activity Based Funding program methodology. Activity profiles have been developed consistent with the WA Health clinical services framework. The funding allocations include activity based services, block funded services and specified programs.

The national ABF classifications and associated price weights including all of the adjustments (Specialised Paediatric, Rural/remote, Indigenous, ICU and private patient) have been used to define activity based funding profiles.

The State Price, calculated using a methodology more closely aligned to the National ABF framework, provide a more transparent basis for comparing the cost of delivering hospital services in Western Australia against the national cost benchmark (Projected Average Cost (PAC). The gap between the total price of all WA hospital activity funded at the State Price and the total cost of all WA hospital activity funded at the PAC, is called the Community Service Subsidy (CSS) payment.

Block funding is based on budget to budget build from the previous year using WA State Government funding parameters consistent with the WA State budget.

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 that has been 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.

State pool account transactions

Table 1a – State pool account transactions – Western Australia, December 2015

This table shows funding paid into the Western Australian state pool account by the Commonwealth, Western Australia or other states/territories, and payments out of the state pool account to LHNs, the state managed fund, the WA Department of Health or the state pool accounts of other states/territories for December 2015.

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
To state pool (other State) Total paid out
($) ($) ($) ($) ($) ($)
Commonwealth
ABF funding
127,187,221 127,187,221 127,187,221
Commonwealth
Block funding
22,163,877 22,163,877 22,163,877
Commonwealth
Other funding
3,316,533 3,316,533 3,316,533
Total C'wealth
funding
152,667,631 127,187,221 22,163,877 3,316,533 152,667,631
WA
funding
421,931,737 421,931,737 0 0 421,931,737
Other state/territory funding 0 0 0 0
Total 574,599,368 549,118,958 22,163,877 3,316,533 0 574,599,368

See definitions and explanatory notes following table 1b.

Table 1b – State pool account transactions YTD – Western Australia, December 2015

Following on from table 1a, this table shows year-to-date (YTD) funding paid into the Western Australian state pool account by the Commonwealth, Western Australia or other states/territories, and payments out of the state pool account to LHNs, the state managed fund, the WA Department of Health or the state pool accounts of other states/territories as at December 2015.

NHR funding by source Paid into state
pool account
Paid out of state pool account
To Local hospital
networks
YTD
To State
Managed Fund
YTD
To state health
department
YTD
To state pool (other State)
YTD
Total paid out
YTD
($) ($) ($) ($) ($) ($)
Commonwealth
ABF funding
718,911,259 718,911,259 718,911,259
Commonwealth
Block funding
132,983,263 132,983,263 132,983,263
Commonwealth
Other funding
19,899,199 19,899,199 19,899,199
Total C'wealth
funding
871,793,720 718,911,259 132,983,263 19,899,199 871,793,720
WA
funding
1,461,590,440 1,461,590,424 0 0 1,461,590,424
Other state/territory funding 0 0 0 0
Total 2,333,384,160 2,180,501,682 132,983,263 19,899,199 0 2,333,384,144

Commonwealth ABF funding represents Acute admitted, Non-admitted, Emergency department, Sub-acute, and Admitted mental health service categories, which are funded by the Commonwealth through the state pool account and subsequently paid to LHNs.

Commonwealth Block funding represents Non-admitted mental health, Small rural hospitals, Teaching, training & research, and Other non-admitted 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.

WA funding represents funding contributions paid by Western Australia into its own state pool account, and subsequently paid to LHNs within the state, to the Western Australian health department and/or to other state pool accounts.

Other state/territory funding represents contributions paid to Western Australia by other states and territories for cross-border activity.

Note: The grey shaded areas in these tables reflect cells that are not applicable for a particular 'paid out' column. For example, Commonwealth block funding is only paid to state managed funds and not to local hospital networks or state or territory 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 – Western Australia, December 2015

This table shows funding paid into the Western Australia state managed fund by the Commonwealth and Western Australia, and payments out of the state managed fund to LHNs and other provider organisations for December 2015.

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 22,163,877 22,163,877
State/territory Block funding 14,684,449 14,684,449
Total 36,848,326 36,761,603 86,722 36,848,326

See explanatory notes following table 2b.

Table 2b – State managed fund transactions YTD – Western Australia, December 2015

Following on from table 2a, this table shows year-to-date (YTD) funding paid into the Western Australian state managed fund by the Commonwealth and Western Australia, and YTD payments out of the state managed fund to LHNs and other provider organisations as at December 2015.

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 132,983,263 132,983,263
State/territory Block funding 154,606,691 154,606,691
Total 287,589,954 287,069,621 520,333 287,589,954

Block funding represents Non-admitted mental health, Small rural hospitals, Teaching, training & research, and Other non-admitted 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 LHNs and other provider organisations.

State/territory Block funding represents Western Australian block funding contributions into the state managed fund, and block payments out of the state managed fund to LHNs 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 – Western Australia, December 2015

This table shows NHR funding and payments by service category on both a monthly and year-to-date (YTD) basis for Western Australia for December 2015. 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 344,329,639 344,329,639 1,347,377,521 1,347,377,522
Admitted mental health 15,942,065 15,942,065 79,974,819 79,974,819
Sub-acute 31,686,658 31,686,658 143,565,090 143,565,091
Emergency department 85,434,712 85,434,712 324,244,441 324,244,441
Non-admitted 71,725,884 71,725,884 285,339,809 285,339,809
Total ABF (Pool) 549,118,958 549,118,958 2,180,501,680 2,180,501,682
Block
Small rural hospitals 8,997,726 8,997,726 67,864,354 67,864,354
Teaching, training & research 8,556,644 8,556,644 103,961,866 103,961,866
Non-admitted mental health 19,293,956 19,293,956 115,763,734 115,763,734
Other non-admitted services 0 0 0 0
Total Block (SMF) 36,848,326 36,848,326 287,589,954 287,589,954
Other
Public health funding 3,316,533 3,316,533 19,899,199 19,899,199
Overdeposit 0 0 0 0
Cross-border 0 0 0 0
Interest 0 0 19 0
Total Other (Pool) 3,316,533 3,316,533 19,899,217 19,899,199
Grand Total 589,283,817 589,283,816 2,487,990,852 2,487,990,835

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 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 LHNs - 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 LHNs are already being funded for the cost of treating cross-border patients - shown in the Cross-border row under Other in the above table.

NHR funding and payments shown in these tables include GST where applicable.

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

NHR contributions by local hospital network

Table 4a – NHR contributions by local hospital network – Western Australia, December 2015

This table shows NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Western Australia during December 2015.

NHR contributions to 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 payment
(ex GST)
($) ($) ($)
Child and Adolescent Health Service 43,634,385 1,625,944 45,260,329
North Metropolitan Health Service 160,435,765 11,594,221 172,029,985
Notional LHN - Royal Street - WA 2,901,931 0 2,901,931
South Metropolitan Health Service 217,316,628 9,866,793 227,183,421
WA Country Health Service 124,830,249 13,674,646 138,504,895
Total 549,118,958 36,761,603 585,880,561

See explanatory notes below table 4b.

Table 4b – NHR contributions by local hospital network YTD – Western Australia, December 2015

This table shows YTD NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Western Australia as at December 2015.

NHR contributions to LHNs are separated into an activity-based funding (ABF) component and a block component.

Local hospital network ABF component YTD
(ex GST)
Block component YTD
(ex GST)
Total NHR payment YTD
(ex GST)
($) ($) ($)
Child and Adolescent Health Service 186,501,405 9,756,005 196,257,410
North Metropolitan Health Service 729,312,457 69,563,719 798,876,176
Notional LHN - Royal Street - WA 18,668,263 0 18,668,263
South Metropolitan Health Service 803,684,476 110,701,693 914,386,169
WA Country Health Service 442,335,082 97,048,204 539,383,286
Total 2,180,501,682 287,069,621 2,467,571,303

NHR contributions in this table are GST exclusive to enable comparability of NHR payments in each LHN report.

Note: This table excludes GST.
The majority of government funding to LHNs 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 activity

States and territories provide service volume 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.

States and territories may also provide activity information relating to the delivery of other public hospital functions funded.

Table 5 – Estimated monthly, YTD and annual NWAU by local hospital network – Western Australia, December 2015

This table shows estimated state or territory hospital activity for activity-based funding services expressed as NWAU for December 2015, the associated cumulative year-to-date (YTD), and total estimated annual NWAU for each LHN in Western Australia.

Local hospital network (LHN) Estimated NWAU delivered in current month Estimated NWAU delivered YTD Estimated annual NWAU 2015-16
Child and Adolescent Health Service 3,719 24,111 47,833
North Metropolitan Health Service 21,641 132,383 262,654
Notional LHN - Royal Street - WA 1,213 8,414 16,686
South Metropolitan Health Service 25,949 169,944 320,311
WA Country Health Service 9,578 60,407 120,357
Total 62,100 395,260 767,841

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.