Western Australian report, October 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 October 2013 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, October 2013

For the basis of the Commonwealth contribution to NHR funding, see Basis of Commonwealth NHR funding, 2013-14.

The basis used to determine NHR payments to LHNs in Western Australia for October 2013 was advised by the WA Department of Health to be as follows:

The 2013-14 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.

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, October 2013

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 October 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
To state pool (other State) Total paid out
($) ($) ($) ($) ($) ($)
Commonwealth
ABF funding
103,194,446 103,194,446 103,194,446
Commonwealth
Block funding
21,761,547 21,761,547 21,761,547
Commonwealth
Other funding
2,972,113 2,972,113 2,972,113
Total C'wealth
funding
127,928,106 103,194,446 21,761,547 2,972,113 127,928,106
WA
funding
273,000,000 273,000,000 0 0 273,000,000
Other state/territory funding 0 0
Total 400,928,106 376,194,446 21,761,547 2,972,113 0 400,928,106

See definitions and explanatory notes following table 1b.

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

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
412,777,784 412,777,784 412,777,784
Commonwealth
Block funding
87,046,188 87,046,188 87,046,188
Commonwealth
Other funding
11,888,451 11,888,451 11,888,451
Total C'wealth
funding
511,712,423 412,777,784 87,046,188 11,888,451 511,712,423
WA
funding
884,450,000 884,450,000 0 0 884,450,000
Other state/territory funding 0 0
Total 1,396,162,423 1,297,227,784 87,046,188 11,888,451 0 1,396,162,423

Commonwealth ABF funding represents Acute admitted public, Acute admitted private, Non-admitted, and 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 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, October 2013

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 October 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 21,761,547 21,761,547
State/territory Block funding 78,084,000 76,626,552
Total 99,845,547 98,388,099 0 98,388,099

See explanatory notes following table 2b.

Table 2b – State managed fund transactions YTD – Western Australia, October 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 LHNs and other provider organisations as at October 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 87,046,188 87,046,188
State/territory Block funding 456,568,000 455,110,552
Total 543,614,188 542,156,740 0 542,156,740

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, October 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 October 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 YTD NHR
funding
YTD NHR
payments
($) ($) ($) ($)
ABF
Acute admitted - public * * * *
Acute admitted - private * * * *
Non-admitted * * * *
Emergency department * * * *
Admitted mental health * * * *
Sub-acute * * * *
Total ABF (Pool) 376,194,446 376,194,446 1,297,227,784 1,297,227,784
Block
Non-admitted mental health 32,324,723 32,075,879 74,405,317 73,529,641
Small rural hospitals 12,535,047 10,782,232 60,283,475 57,784,159
Teaching, training & research 12,153,467 10,574,549 74,126,623 71,499,465
Other non-admitted services 42,832,310 44,955,439 334,798,773 339,343,474
Total Block (SMF) 99,845,547 98,388,099 543,614,188 542,156,740
Other
Public health funding 2,972,113 2,972,113 11,888,451 11,888,451
Overdeposit 0 0 0 0
Cross-border 0 0 0 0
Interest 0 0 0 0
Total Other (Pool) 2,972,113 2,972,113 11,888,451 11,888,451
Grand Total 479,012,106 477,554,658 1,852,730,423 1,851,272,975

* Due to a revision by Western Australia in the expected NWAU to be delivered in 2013-14 and the timing of the consequent adjustment by the Administrator to Commonwealth contributions, the distribution of payments by LHNs and by service categories shown in this month's report may differ to that reported by Western Australia. These differences will disappear in the coming months.

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 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, October 2013

This table shows NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Western Australia during October 2013.

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 34,277,015 6,605,722 40,882,738
North Metropolitan Health Service 111,421,057 41,518,116 152,939,173
South Metropolitan Health Service 140,360,356 20,450,647 160,811,003
WA Country Health Service 90,136,017 29,813,613 119,949,631
Total 376,194,446 98,388,099 474,582,545

See explanatory notes below table 4b.

Table 4b – NHR contributions by local hospital network YTD – Western Australia, October 2013

This table shows YTD NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Western Australia as at October 2013.

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 90,034,862 67,479,194 157,514,057
North Metropolitan Health Service 401,131,192 161,130,516 562,261,708
South Metropolitan Health Service 515,176,247 140,381,824 655,558,071
WA Country Health Service 290,885,483 173,165,205 464,050,688
Total 1,297,227,784 542,156,740 1,839,384,524

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, October 2013

This table shows estimated state or territory hospital activity for activity-based funding services expressed as NWAU for October 2013, 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 2013-14
Child and Adolescent Health Service 4,298 17,259 49,677
North Metropolitan Health Service 20,621 81,573 241,134
South Metropolitan Health Service 24,954 99,040 295,816
WA Country Health Service 7,358 29,408 87,666
Total 57,231 227,281 674,293

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.