Western Australian report, May 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 May 2013 as part of the National Health Reform Agreement.

Participation in the National Health Funding Pool – Western Australia, May 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, May 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 May 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, May 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 May 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
84,567,916 84,567,916 84,567,916
Commonwealth
Block funding
28,184,161 28,184,161 28,184,161
Commonwealth
Other funding
2,704,986 2,704,986 2,704,986
Total C'wealth
funding
115,457,062 84,567,916 28,184,161 2,704,986 115,457,062
Total state/territory
funding
214,225,338 214,225,338 0 214,225,338
Grand Total 329,682,401 298,793,254 28,184,161 2,704,986 329,682,401

See definitions and explanatory notes following table 1b.

Table 1b – State pool account transactions YTD – Western Australia, May 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 May 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
936,721,426 936,721,426 936,721,426
Commonwealth
Block funding
312,168,093 312,168,093 312,168,093
Commonwealth
Other funding
29,855,861 29,855,861 29,855,861
Total C'wealth
funding
1,278,745,379 936,721,426 312,168,093 29,855,861 1,278,745,379
Total state/territory
funding
2,463,361,329 2,463,361,329 0 2,463,361,329
Grand Total 3,742,106,708 3,400,082,754 312,168,093 29,855,861 3,742,106,708

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, May 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 May 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 28,184,161 28,184,161
State/territory Block funding 94,050,000 94,050,000
Total 122,234,161 122,234,161 0 122,234,161

See explanatory notes following table 2b.

Table 2b – State managed fund transactions YTD – Western Australia, May 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 May 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 312,168,093 312,168,093
State/territory Block funding 732,238,000 732,238,000
Total 1,044,406,093 1,044,406,093 0 1,044,406,093

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, May 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 May 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 199,059,421 199,059,421 2,262,475,198 2,262,475,198
Acute admitted - private 21,211,901 21,211,901 240,275,525 240,275,525
Non-admitted 39,210,192 39,210,192 444,839,463 444,839,463
Emergency department 39,311,740 39,311,740 452,492,569 452,492,569
Total ABF (Pool) 298,793,254 298,793,254 3,400,082,754 3,400,082,754
Block
Mental health 7,508,076 7,508,076 237,456,743 237,403,410
Small rural and metro hospitals 14,361,787 14,354,262 149,985,468 149,892,800
Sub-acute 12,616,116 12,623,327 97,199,975 97,223,712
Teaching, training and research 13,997,063 13,997,063 113,436,935 113,563,141
Other 73,751,120 73,751,434 446,326,973 446,323,029
Total Block (SMF) 122,234,161 122,234,161 1,044,406,093 1,044,406,093
Other
Public health funding 2,704,986 2,704,986 29,855,861 29,855,861
Overdeposit 0 0 0 0
Cross-border 0 0 0 0
Interest 0 0 0 0
Total Other (Pool) 2,704,986 2,704,986 29,855,861 29,855,861
Grand Total 423,732,401 423,732,401 4,474,344,708 4,474,344,708

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, May 2013

This table shows NHR payments (from state, territory and Commonwealth sources) made to each local hospital network (LHN) in Western Australia during May 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 21,202,653 13,535,731 34,738,383
North Metropolitan Health Service 101,434,946 31,593,727 133,028,673
South Metropolitan Health Service 124,286,639 22,295,816 146,582,454
WA Country Health Service 51,869,017 54,808,887 106,677,904
Total 298,793,254 122,234,161 421,027,415

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, May 2013

This table shows estimated state or territory hospital activity for activity-based funding services expressed as NWAU for May 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 4,603 44,523 48,262
North Metropolitan Health Service 18,680 199,782 216,653
South Metropolitan Health Service 23,884 252,475 272,581
WA Country Health Service 6,950 74,752 81,471
Total 54,117 571,531 618,967

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.