Western Australian report, November 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 November 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, November 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 November 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, November 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 November 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
176,631,737 176,631,737 0 0 176,631,737
Other state/territory funding 0 0 0 0
Total 329,299,368 303,818,958 22,163,877 3,316,533 0 329,299,368

See definitions and explanatory notes following table 1b.

Table 1b – State pool account transactions YTD – Western Australia, November 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 November 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
591,724,038 591,724,038 591,724,038
Commonwealth
Block funding
110,819,386 110,819,386 110,819,386
Commonwealth
Other funding
16,582,665 16,582,665 16,582,665
Total C'wealth
funding
719,126,089 591,724,038 110,819,386 16,582,665 719,126,089
WA
funding
1,039,658,703 1,039,658,687 0 0 1,039,658,687
Other state/territory funding 0 0 0 0
Total 1,758,784,792 1,631,382,725 110,819,386 16,582,665 0 1,758,784,776

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, November 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 November 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 57,684,449 57,684,449
Total 79,848,326 79,761,603 86,722 79,848,326

See explanatory notes following table 2b.

Table 2b – State managed fund transactions YTD – Western Australia, November 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 November 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 110,819,386 110,819,386
State/territory Block funding 139,922,243 139,922,242
Total 250,741,629 250,308,018 433,610 250,741,628

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, November 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 November 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 185,178,240 185,178,240 1,003,047,882 1,003,047,883
Admitted mental health 15,942,065 15,942,065 64,032,754 64,032,754
Sub-acute 18,264,240 18,264,240 111,878,433 111,878,434
Emergency department 45,223,515 45,223,515 238,809,729 238,809,729
Non-admitted 39,210,898 39,210,898 213,613,925 213,613,925
Total ABF (Pool) 303,818,958 303,818,958 1,631,382,723 1,631,382,725
Block
Small rural hospitals 22,875,726 22,875,726 58,866,628 58,866,628
Teaching, training & research 37,678,644 37,678,644 95,405,222 95,405,222
Non-admitted mental health 19,293,956 19,293,956 96,469,779 96,469,778
Other non-admitted services 0 0 0 0
Total Block (SMF) 79,848,326 79,848,326 250,741,629 250,741,628
Other
Public health funding 3,316,533 3,316,533 16,582,665 16,582,665
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 16,582,684 16,582,665
Grand Total 386,983,817 386,983,816 1,898,707,035 1,898,707,018

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, November 2015

This table shows NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Western Australia during November 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 28,334,385 1,625,944 29,960,329
North Metropolitan Health Service 103,435,765 11,594,221 115,029,985
Notional LHN - Royal Street - WA 2,901,931 0 2,901,931
South Metropolitan Health Service 103,316,628 37,866,793 141,183,421
WA Country Health Service 65,830,249 28,674,646 94,504,895
Total 303,818,958 79,761,603 383,580,561

See explanatory notes below table 4b.

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

This table shows YTD NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Western Australia as at November 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 142,867,020 8,130,061 150,997,081
North Metropolitan Health Service 568,876,692 57,969,498 626,846,190
Notional LHN - Royal Street - WA 15,766,332 0 15,766,332
South Metropolitan Health Service 586,367,848 100,834,900 687,202,749
WA Country Health Service 317,504,832 83,373,558 400,878,390
Total 1,631,382,725 250,308,018 1,881,690,742

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, November 2015

This table shows estimated state or territory hospital activity for activity-based funding services expressed as NWAU for November 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 4,087 20,392 47,833
North Metropolitan Health Service 22,330 110,742 262,654
Notional LHN - Royal Street - WA 1,448 7,201 16,686
South Metropolitan Health Service 27,203 143,995 320,311
WA Country Health Service 10,271 50,829 120,357
Total 65,338 333,160 767,841

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.