South Metropolitan Health Service report, September 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 Western Australia to the South Metropolitan Health Service for September 2012 as part of the National Health Reform Agreement.

The South Metropolitan Health Service (SMHS) is the local hospital network covering the south-eastern metropolitan region of Perth. See South Metropolitan Health Service 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 Western Australian report for September 2012, see Western Australian report, September 2012.

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

Commonwealth and Western Australian NHR payments

This table shows the NHR payments made by the Commonwealth and Western Australia to the South Metropolitan Health Service by service category and contribution for September 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: South Metropolitan Health Service, September 2012

Service category Total NHR payments
(ex GST)
GST Commonwealth
NHR payments
(ex GST)
State/territory
NHR payments
(ex GST)
($) ($) ($) ($)
Acute admitted - public 87,686,586 0 26,894,435 60,792,151
Acute admitted - private 9,280,063 0 1,989,122 7,290,941
Non-admitted 15,526,766 0 5,429,375 10,097,391
Emergency department 14,527,133 0 4,761,508 9,765,625
Total ABF payments (Pool) 127,020,548 0 39,074,440 87,946,108
Mental health 5,987,686 0
Small rural & metro hospitals 0 0
Sub-acute 11,940,284 0
Teaching, training & research 9,432,657 0
Other 17,660,085 0
Total Block payments (SMF) 45,020,712 0
Total 172,041,259 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 Western Australia to the South Metropolitan Health Service as at September 2012.

Table 1b – NHR payments YTD: South Metropolitan Health Service, September 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 261,334,990 0 80,683,305 180,651,686
Acute admitted - private 27,508,122 0 5,967,367 21,540,755
Non-admitted 46,117,235 0 16,288,124 29,829,110
Emergency department 43,133,549 0 14,284,524 28,849,025
Total ABF payments (Pool) 378,093,896 0 117,223,320 260,870,577
Mental health 19,627,560 0
Small rural & metro hospitals 0 0
Sub-acute 25,932,272 0
Teaching, training & research 20,972,455 0
Other 33,979,848 0
Total Block payments (SMF) 100,512,135 0
Total 478,606,032 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.

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 Western Australian report for September 2012, see Western Australian report, September 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 September 2012, the associated cumulative year-to-date (YTD) NWAU, and the total estimated annual NWAU for the South Metropolitan Health Service.

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 South Metropolitan Health Service 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: South Metropolitan Health Service, September 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 15,222 47,358 187,614
Acute admitted - private 1,126 3,503 13,876
Non-admitted 3,275 9,774 37,875
Emergency department 2,726 8,146 33,216
Total 22,349 68,781 272,581

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 Western Australian report for September 2012, see Western Australian report, September 2012

South Metropolitan Health Service public hospitals and service providers

The South Metropolitan Health Service (SMHS) is the local hospital network covering the south-eastern metropolitan region of Perth.

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

  • Armadale-Kelmscott Memorial Hospital
  • Bentley Hospital
  • Fremantle-Kaleeya Hospital
  • Murray Hospital
  • Peel Health Campus
  • Rockingham General Hospital
  • Rottnest Island Nursing Post
  • Royal Perth Hospital
  • Shenton Park Campus