Western Australian report, June 2013

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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 June 2013 as part of the National Health Reform Agreement.

Participation in the National Health Funding Pool – Western Australia, June 2013

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.

Western Australia has participated in the National Health Funding Pool since 1 July 2012.

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. 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.

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, 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 WA Department of Health to view the service agreement for that local hospital network.

Basis for National Health Reform payments – Western Australia, June 2013

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

The basis used to determine NHR payments to local hospital networks (LHNs) in Western Australia for June 2013 was advised by the WA Department of Health to be as follows:

The 2012-13 annual funding allocations for Western Australia have been developed using the Western Australian Activity Based Funding (ABF) 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 activity-based funding classifications and associated price weights including all of the loadings (specialised paediatric, rural/remote, indigenous, intensive care unit (ICU) and private patient) have been used to define activity-based funding profiles. State specific loadings have been applied to adjust for peer relativities in the metropolitan area and for rural and remote sites. Block funding is based on budget to budget build from the previous year using State Government funding parameters consistent with the State budget.

Monthly allocations to local hospital networks will vary for a variety of reasons, for example, allowance for annual insurance premiums, or variation in number of staff pay days in a month.

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 the state managed fund by the state or territory.

State pool account transactions

Table 1a – State pool account transactions – Western Australia, June 2013

This table shows funding paid into the Western Australian state pool account by the Commonwealth and Western Australia, and payments out of the state pool account to local hospital networks, the state managed fund, and the WA Department of Health for June 2013.

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
87,455,638 87,455,638 87,455,638
Commonwealth
Block funding
29,148,288 29,148,288 29,148,288
Commonwealth
Other funding
2,796,805 2,796,805 2,796,805
Total C'wealth
funding
119,400,730 87,455,638 29,148,288 2,796,805 119,400,730
Total state/territory
funding
191,567,653 191,567,653 0 191,567,653
Grand Total 310,968,383 279,023,291 29,148,288 2,796,805 310,968,383

See definitions and explanatory notes following table 1b.

Table 1b – State pool account transactions YTD – Western Australia, June 2013

Following on from table 1a, this table shows year-to-date (YTD) funding paid into the Western Australian state pool account by the Commonwealth and Western Australia, and YTD payments out of the state pool account to local hospital networks, the state managed fund, and the WA Department of Health as at June 2013.

NHR funding by source Paid into state
pool account
YTD
Paid out of state pool account YTD
To local hospital
networks
YTD
To state
managed fund
YTD
To state health
department
YTD
Total paid out
YTD
($) ($) ($) ($) ($)
Commonwealth
ABF funding
1,024,177,063 1,024,177,063 1,024,177,063
Commonwealth
Block funding
341,316,381 341,316,381 341,316,381
Commonwealth
Other funding
32,652,665 32,652,665 32,652,665
Total C'wealth
funding
1,398,146,109 1,024,177,063 341,316,381 32,652,665 1,398,146,109
Total state/territory
funding
2,654,928,982 2,654,928,982 0 2,654,928,982
Grand Total 4,053,075,091 3,679,106,045 341,316,381 32,652,665 4,053,075,091

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 by Western Australia into its own state pool account, and subsequently paid to local hospital networks within the state and/or to state or territory health departments.

Note: The grey shaded areas in these tables reflect that these amounts are not applicable for a particular 'paid out' column. For example, Commonwealth block funding is only paid to state managed funds and is not applicable for 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, June 2013

This table shows funding paid into the Western Australian state managed fund by the Commonwealth and Western Australia, and payments out of the state managed fund to local hospital networks and other provider organisations for June 2013.

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 29,148,288 29,148,288
State/territory Block funding 22,598,951 22,598,951
Total 51,747,239 51,747,239 0 51,747,239

See explanatory notes following table 2b.

Table 2b – State managed fund transactions YTD – Western Australia, June 2013

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 local hospital networks and other provider organisations as at June 2013.

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 341,316,381 341,316,381
State/territory Block funding 754,836,951 754,836,951
Total 1,096,153,332 1,096,153,332 0 1,096,153,332

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 Western Australian 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, 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, June 2013

This table shows NHR funding and payments by service category on both a monthly and year-to-date (YTD) basis for Western Australia for June 2013. 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 - public 188,544,000 188,544,000 2,451,019,198 2,451,019,198
Acute admitted - private 20,295,027 20,295,027 260,570,552 260,570,552
Non-admitted 36,548,178 36,548,178 481,387,641 481,387,641
Emergency department 33,636,085 33,636,085 486,128,654 486,128,654
Total ABF (Pool) 279,023,291 279,023,291 3,679,106,045 3,679,106,045
Block
Mental health 57,535,302 57,569,124 294,992,045 294,972,533
Small rural and metro hospitals 12,802,619 12,902,200 162,788,086 162,795,001
Sub-acute -4,416,502 -4,403,397 92,783,472 92,820,315
Teaching, training and research -1,825,660 -1,999,519 111,611,274 111,563,622
Other -12,348,519 -12,321,168 433,978,454 434,001,861
Total Block (SMF) 51,747,239 51,747,239 1,096,153,332 1,096,153,332
Other
Public health funding 2,796,805 2,796,805 32,652,665 32,652,665
Overdeposit 0 0 0 0
Cross-border 0 0 0 0
Interest 0 0 0 0
Total Other (Pool) 2,796,805 2,796,805 32,652,665 32,652,665
Grand Total 333,567,334 333,567,334 4,807,912,042 4,807,912,042

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 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, see National Health Reform funding and payments.

NHR payment distribution by local hospital network

Table 4 – NHR payment distribution by local hospital network – Western Australia, June 2013

This table shows NHR payments (from state, territory and Commonwealth sources) made to each local hospital network (LHN) in Western Australia during June 2013.

NHR payments distributed to local hospital networks (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 payments
(ex GST)
($) ($) ($)
Child and Adolescent Health Service 20,904,295 9,424,825 30,329,119
North Metropolitan Health Service 113,701,691 -8,413,225 105,288,465
South Metropolitan Health Service 112,457,463 7,473,142 119,930,605
WA Country Health Service 31,959,843 43,262,497 75,222,340
Total 279,023,291 51,747,239 330,770,530

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 in each local hospital network report.

Note: This table excludes GST and payments to other provider organisations (non-local hospital networks).
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, see National Health Reform funding and payments.

Estimated monthly, YTD and annual NWAU by local hospital network

States and territories provide NHR funding amounts and service volumes as service 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.

Table 5 – Estimated monthly, YTD and annual NWAU by local hospital network – Western Australia, June 2013

This table shows estimated state or territory hospital activity for activity-based funding services expressed as NWAU for June 2013, the associated cumulative year-to-date (YTD), and total estimated annual NWAU for each local hospital network in Western Australia.

Local hospital network (LHN) Estimated NWAU delivered in current month Estimated NWAU delivered YTD Estimated annual NWAU 2012-13
Child and Adolescent Health Service 4,061 48,585 48,262
North Metropolitan Health Service 18,513 218,294 216,653
South Metropolitan Health Service 22,862 275,336 272,581
WA Country Health Service 7,068 81,820 81,471
Total 52,504 624,035 618,967

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.