To improve the transparency and integrity of public hospital funding, the Administrator of the National Health Funding Pool (the Administrator), with the assistance of the National Health Funding Body (NHFB), reports publicly on the payments made to Local Hospital Networks (LHNs) and their activity.
This section contains monthly reports published by the Administrator of National Health Reform (NHR) funding and payments by State, Territory and Commonwealth governments to Local Hospital Networks (LHNs) throughout Australia. The reports are provided on a national, State or Territory, and LHN basis.
The monthly reports also disclose how NHR funding relates to the number and type of services LHNs have agreed to provide and have been produced by the Administrator since July 2012.
The Administrator's Annual Report includes jurisdictional funding and payment details and the associated number of public hospital services agreed and estimated to be delivered. The subsequent financial year's Annual Report also includes the number of actual services delivered in the previous financial year.
Purpose of monthly reports
The purpose of monthly reports issued by the Administrator is to satisfy the reporting requirements of section 240 of the National Health Reform Act 2011 (the Act).
To meet the terms of the Act, the Administrator is required to report the basis on which funding has been made, at the LHN level for each State and Territory, and the number of services provided. The reporting of this information will improve the ability of all stakeholders, including the general public, to make informed comparisons over time within and between LHNs.
The Administrator must provide these reports to the Commonwealth and each State and Territory government on a monthly basis, and must make the reports available to the public.
The monthly reports also help to deliver the transparency requirements stated in the NHR Agreement. The Agreement states that there is to be complete transparency and line-of-sight of respective contributions into and out of State pool accounts to LHNs, discrete State Managed Funds, or to State or Territory health departments in relation to public health funding and any top-up funding, and of the basis on which the contributions are calculated. There is also to be complete transparency and line-of-sight of respective contributions out of State Managed Funds to LHNs.
Collecting data for monthly reports
The Administrator collects data from States and Territories to support monthly reporting on the level of government funding (State, Territory and Commonwealth) provided to each LHN, and the basis on which those funding levels have been set.
NHR funding amounts and service volumes are provided by States and Territories as service estimates at the start of each financial year. These annual estimates (together with the basis on which funding levels have been set) are shown at LHN level for both activity based and block funding. Estimates may continue to be refined during the course of the year. These estimates form the basis of monthly reporting of service volumes until actual service numbers become available.
Public health funding (provided by the Commonwealth only) is shown as a single block of funding for each State or Territory.
Annual report and financial statements
Section 241 states the Administrator must, within 4 months after the end of each financial year, provide to the responsible Ministers an annual report on the exercise or performance of his or her functions during the financial year.
The annual report includes the following information for the relevant financial year:
- the amounts paid into each State Pool Account and State Managed Fund by the relevant State or Territory, and the basis on which the payments were made
- the amounts paid into each State Pool Account by the Commonwealth and the basis on which the payments were made
- the amounts paid from each State Pool Account to LHNs, a State Managed Fund or other organisations or funds, and the basis on which the payments were made
- the amounts paid from each State Managed Fund to LHNs or other organisations or funds, and the basis on which the payments were made
- the number of public hospital services funded for each LHN in accordance with the activity based funding system
- the number of other public hospital services and functions funded from each State Pool Account or State Managed Fund.
The annual report is accompanied by:
- a financial statement for each State Pool Account
- a financial statement that combines the audited financial statements for each State Pool Account.
The financial statement is audited by the Auditor‑General of that State in accordance with the relevant legislation of that State relating to financial audit by the Auditor‑General.