Western Sydney Local Health District report, November 2012

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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 shows the National Health Reform (NHR) payments made by the Commonwealth and New South Wales to the Western Sydney Local Health District for November 2012 as part of the National Health Reform Agreement.

The Western Sydney Local Health District is the local hospital network covering the western suburbs of Sydney. See Western Sydney Local Health District public hospitals and service providers.

Local hospital networks and National Health Reform

A local hospital network (LHN) is an organisation that provides public hospital services in accordance with the National Health Reform Agreement (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 local terminology to describe these networks, such as local health districts, health organisations, and hospital and health services.

Under the Agreement, local hospital networks receive NHR 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 Department of Health in the relevant state or territory to view the service agreement for that local hospital network.

Reference information

The data in this report can be viewed in conjunction with information shown on the website: MyHospitals (external link, opens in a new window) [http://www.myhospitals.gov.au] which provides information on hospitals throughout Australia.

The financial information outlined in the following report represents NHR payments. NHR payments are when NHR funding is deposited into a state pool account or state managed fund and is paid out of the state pool account by the Administrator, or is paid out of state managed fund by the state or territory.

For the basis of NHR payments, see the Basis for National Health Reform payments explanation in the New South Wales report for November 2012, see New South Wales report, November 2012.

For the basis of the Commonwealth contribution to NHR funding, see Basis of Commonwealth funding 2012-13.

Commonwealth and New South Wales NHR payments

This table shows the NHR payments made by the Commonwealth and New South Wales to the Western Sydney Local Health District by service category and contribution for November 2012.

The data is divided into service category and associated Commonwealth and state or territory contribution for each amount. For further information on total funding to a particular local hospital network, contact the Department of Health in the relevant state or territory to view the service agreement for that local hospital network.

Table 1a – NHR payments: Western Sydney Local Health District, November 2012

Service category Total NHR payments
(ex GST)
GST Commonwealth
NHR payments
(ex GST)
State/territory
NHR payments
(ex GST)
($) ($) ($) ($)
Acute admitted - public 40,625,178 0 15,025,432 25,599,747
Acute admitted - private 3,762,237 0 1,391,483 2,370,754
Emergency department 6,830,096 0 2,526,146 4,303,950
Non-admitted 9,940,469 0 3,676,534 6,263,935
Total ABF payments (Pool) 61,157,980 0 22,619,594 38,538,386
Small rural & metro hospitals 0 0
Mental health 7,260,452 0
Teaching, training & research 3,070,858 0
Sub-acute 3,385,495 0
Other 2,315,912 0
Total Block payments (SMF) 16,032,716 0
Total 77,190,696 0

See explanatory notes following table 1b.

Following on from table 1a, this table shows the year-to-date (YTD) NHR payments made by the Commonwealth and New South Wales to the Western Sydney Local Health District as at November 2012.

Table 1b – NHR payments YTD: Western Sydney Local Health District, November 2012

Service category Total NHR payments YTD
(ex GST)
GST YTD Commonwealth
NHR payments YTD
(ex GST)
State/territory
NHR payments YTD
(ex GST)
($) ($) ($) ($)
Acute admitted - public 217,665,116 0 75,127,159 142,537,957
Acute admitted - private 20,157,638 0 6,957,413 13,200,225
Emergency department 36,594,884 0 12,630,732 23,964,153
Non-admitted 53,259,909 0 18,382,668 34,877,241
Total ABF payments (Pool) 327,677,548 0 113,097,972 214,579,576
Small rural & metro hospitals 0 0
Mental health 42,287,037 0
Teaching, training & research 17,885,591 0
Sub-acute 19,718,131 0
Other 13,488,565 0
Total Block payments (SMF) 93,379,323 0
Total 421,056,871 0

Total ABF payments (Pool) represents NHR payments made by the Administrator from the state pool account to the local hospital network (LHN).

Total Block payments (SMF) represents NHR payments made by the state or territory from the state managed fund (SMF) to the local hospital network.

Note: The grey shaded areas in the table above reflect that block payments made to local hospital networks cannot at this stage be identified by source of funding (state, territory or Commonwealth) when paid from state managed funds.

Payments in these tables are GST exclusive. 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 the basis of NHR payments, see the Basis for National Health Reform payments explanation in the New South Wales report for November 2012, see New South Wales report, November 2012.

Estimated monthly, YTD and annual NWAU

This table shows the estimated activity for activity based funding services expressed as National Weighted Activity Units (NWAU) for November 2012, the associated cumulative year-to-date (YTD) NWAU, and the total estimated annual NWAU for the Western Sydney Local Health District.

NHR funding amounts and service volumes are provided by states and territories as service estimates at the start of each financial year, and 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.

The estimated annual NWAU for the Western Sydney Local Health District was provided to the Administrator as a basis for determining Commonwealth NHR activity based funding. Current month NWAU estimates accumulate through the year-to-date (YTD) NWAU to equal the annual NWAU at the end of the financial year.

Table 2 – Estimated monthly, YTD and annual NWAU: Western Sydney Local Health District, November 2012

Activity based funding
(ABF) service category
Estimated NWAU delivered in current month Estimated NWAU delivered YTD Estimated annual
NWAU 2012-13
Acute admitted - public 8,682 46,517 109,300
Acute admitted - private 804 4,308 10,122
Emergency department 1,460 7,821 18,376
Non-admitted 2,124 11,382 26,744
Total 13,070 70,027 164,543

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 explanation and basis, see National Health Reform Reporting.

For the basis of NHR payments, see the Basis for National Health Reform payments explanation in the New South Wales report for November 2012, see New South Wales report, November 2012

Western Sydney Local Health District public hospitals and service providers

The Western Sydney Local Health District is the local hospital network covering the western suburbs of Sydney.

For the purposes of National Health Reform public hospital funding arrangements, this network is made up of the following public hospitals and service providers:

  • Auburn Hospital
  • Blacktown Hospital
  • Cumberland Hospital
  • Mount Druitt Hospital
  • Westmead Hospital