Western Australian report, February 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 February 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, February 2015

For the basis of the Commonwealth contribution to NHR funding, see Basis of Commonwealth NHR funding, 2014-15.

The basis used to determine NHR payments to LHNs in Western Australia for February 2015 was advised by the WA Department of Health to be as follows:

The 2014-15 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 Transitioning 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 hospital activity funded at the State Transition Price and the total cost of all 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 State Government funding parameters consistent with the State budget.

The payments disclosed in the FSH and South Metropolitan Health Service reflect funding allocations between these LHNs reported to the Administrator by WA Health.

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, February 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 February 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
119,426,733 119,514,327 119,514,327
Commonwealth
Block funding
25,416,303 25,430,325 25,430,325
Commonwealth
Other funding
3,129,000 3,129,000 3,129,000
Total C'wealth
funding
147,972,037 119,514,327 25,430,325 3,129,000 148,073,653
WA
funding
169,010,449 169,009,483 0 0 169,009,483
Other state/territory funding 0 0 0 0
Total 316,982,485 288,523,810 25,430,325 3,129,000 0 317,083,136

See definitions and explanatory notes following table 1b.

Table 1b – State pool account transactions YTD – Western Australia, February 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 February 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
956,997,042 956,646,665 956,646,665
Commonwealth
Block funding
186,393,409 186,339,810 186,339,810
Commonwealth
Other funding
25,144,758 25,144,758 25,144,758
Total C'wealth
funding
1,168,535,209 956,646,665 186,339,810 25,144,758 1,168,131,234
WA
funding
1,447,138,380 1,447,136,218 0 0 1,447,136,218
Other state/territory funding 0 0 0 0
Total 2,615,673,589 2,403,782,883 186,339,810 25,144,758 0 2,615,267,452

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, February 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 February 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 25,416,303 25,430,325
State/territory Block funding 14,246,747 14,246,747
Total 39,663,050 39,349,787 327,285 39,677,072

See explanatory notes following table 2b.

Table 2b – State managed fund transactions YTD – Western Australia, February 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 February 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 186,393,409 186,339,810
State/territory Block funding 282,328,072 282,328,072
Total 468,721,481 468,340,597 327,285 468,667,882

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, February 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 February 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 171,690,914 171,690,914 1,426,141,300 1,426,141,300
Admitted mental health 22,394,741 22,482,335 175,278,123 174,927,422
Sub-acute 13,487,350 13,487,350 116,478,242 116,478,242
Emergency department 37,996,407 37,996,407 310,619,680 310,619,680
Non-admitted 42,866,804 42,866,804 375,616,238 375,616,238
Total ABF (Pool) 288,436,216 288,523,810 2,404,133,584 2,403,782,883
Block
Small rural hospitals 11,073,576 11,073,576 204,735,333 204,735,333
Teaching, training & research 9,016,613 9,021,600 110,211,226 110,193,769
Non-admitted mental health 19,135,591 19,144,626 147,353,516 147,317,375
Other non-admitted services 437,270 437,270 6,421,406 6,421,406
Total Block (SMF) 39,663,050 39,677,072 468,721,481 468,667,882
Other
Public health funding 3,129,000 3,129,000 25,144,758 25,144,758
Overdeposit 0 0 0 0
Cross-border 0 0 0 0
Interest 966 0 1,838 0
Total Other (Pool) 3,129,966 3,129,000 25,146,596 25,144,758
Grand Total 331,229,232 331,329,883 2,898,001,662 2,897,595,524

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, February 2015

This table shows NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Western Australia during February 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 24,986,625 1,814,694 26,801,319
FSH - Western Australia 9,469,317 650,523 10,119,840
North Metropolitan Health Service 98,715,800 11,514,175 110,229,975
Notional LHN - Royal Street - WA 2,758,659 0 2,758,659
South Metropolitan Health Service 106,994,608 9,201,691 116,196,300
WA Country Health Service 45,598,801 16,168,704 61,767,505
Total 288,523,810 39,349,787 327,873,598

See explanatory notes below table 4b.

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

This table shows YTD NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Western Australia as at February 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 175,617,134 17,471,172 193,088,305
FSH - Western Australia 88,375,012 4,100,532 92,475,544
North Metropolitan Health Service 855,870,475 104,318,910 960,189,385
Notional LHN - Royal Street - WA 44,901,074 0 44,901,074
South Metropolitan Health Service 904,351,792 91,771,955 996,123,747
WA Country Health Service 334,667,396 250,678,029 585,345,426
Total 2,403,782,883 468,340,597 2,872,123,481

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, February 2015

This table shows estimated state or territory hospital activity for activity-based funding services expressed as NWAU for February 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 2014-15
Child and Adolescent Health Service 4,105 33,601 51,432
FSH - Western Australia 8,920 15,480 54,346
North Metropolitan Health Service 20,760 173,254 262,442
Notional LHN - Royal Street - WA 1,387 10,742 16,268
South Metropolitan Health Service 20,729 182,669 267,622
WA Country Health Service 7,757 64,247 97,721
Total 63,658 479,994 749,831

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.