To meet the reporting requirements of Section 240 of the National Health Reform Act 2011, the Administrator is to include the basis of each State and Territory’s National Health Reform (NHR) funding and payments.
The State contribution to the funding of public hospital services and functions is calculated on an activity basis or provided as block funding in accordance with the National Health Reform Agreement – Addendum 2020-25. The State determines the amount they pay for public hospital services and functions and the mix of those services and functions and will meet the balance of the cost of delivering public hospital services and functions over and above the Commonwealth contribution.
State funding paid on an activity basis to Local Hospital Networks is based on the price set by the State (which is reported in Service Agreements) and the volume of weighted services as set out in Service Agreement for each service category.
To provide consistency in methodology and with the Addendum to National Health Reform Agreement 2020-25, the 2024-25 New South Wales Funding Model has implemented the State Efficient Price and National Weighted Activity Unit (NWAU24) as the currency for Activity Based Funding (ABF) facilities.
The National Efficient Cost (NEC24) for small rural public hospitals model is used for small regional and remote hospitals. New South Wales has retained an alternative methodology to better account locally for the significant challenges faced by small hospitals in rural settings and better integrate care between small regional and remote hospitals and ABF hospitals.
The NEC24 Block funding model is used as the currency for standalone hospitals providing non-admitted mental health service non-admitted home ventilation, teaching, training and research provided in hospitals and other public hospital programs.
Operational and Block funding to districts/networks covers services provided and activities undertaken that are not within scope for ABF.
The State determines when payments are made into the Pool and State managed fund. Payments are made from the Pool account to local health districts/specialty health networks (districts/networks) in accordance with the Service Agreement agreed between the Secretary, New South Wales Health and the local health districts/networks.
The Secretary, New South Wales Health and the local health districts/networks can agree amendments to the Service Agreement to adjust service volumes or pricing to take account of such matters as changing health needs, variations in actual service delivery and hospital performance.
The Service Agreements are available on each of the Local health district and speciality network websites.
Further information regarding the Basis for National Health Reform payments in both 2024-25 and previous financial years is included at www.publichospitalfunding.gov.au.