Australian Capital Territory report, May 2018

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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 the Australian Capital Territory for May 2018 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 ACT Health Directorate to view the service agreement for that LHN.

Basis for National Health Reform payments – Australian Capital Territory, May 2018

For the basis of the Commonwealth contribution to NHR funding, see Basis of Commonwealth NHR funding, 2017-18.

The basis used to determine NHR payments to the Australian Capital Territory Local Hospital Network (LHN) for May 2018 was advised by the ACT Health Directorate to be as follows:

The annual funding allocation for the ACT in 2017-18 is based on budget-neutral modelling. This modelling is predicated on the historical cost of providing hospital services plus wages and non-wages indexation. The activity for activity-based funded services is derived using historical activity levels plus an allowance for reasonable growth in public hospital services for the current year. The weighted activity is measured and funded based on the full Independent Hospital Pricing Authority pricing model and framework parameters.

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 – Australian Capital Territory, May 2018

This table shows funding paid into the Australian Capital Territory state pool account by the Commonwealth, the Australian Capital Territory or other states/territories, and payments out of the state pool account to LHNs, the state managed fund, the ACT Health Directorate or the state pool accounts of other states/territories for May 2018.

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
27,952,432 27,952,432 27,952,432
Commonwealth
Block funding
1,740,262 1,740,262 1,740,262
Commonwealth
Other funding
551,693 551,693 551,693
Total C'wealth
funding
30,244,387 27,952,432 1,740,262 551,693 30,244,387
ACT
funding
66,671,000 73,021,000 0 1,600,000 74,621,000
Other state/territory funding 7,950,000 0 0 0
Total 104,865,387 100,973,432 1,740,262 551,693 1,600,000 104,865,387

See definitions and explanatory notes following table 1b.

Table 1b – State pool account transactions YTD – Australian Capital Territory, May 2018

Following on from table 1a, this table shows year-to-date (YTD) funding paid into the Australian Capital Territory state pool account by the Commonwealth, the Australian Capital Territory or other states/territories, and payments out of the state pool account to LHNs, the state managed fund, the ACT Health Directorate or the state pool accounts of other states/territories as at May 2018.

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
302,844,281 302,844,281 302,844,281
Commonwealth
Block funding
23,936,369 23,936,369 23,936,369
Commonwealth
Other funding
5,907,605 5,907,605 5,907,605
Total C'wealth
funding
332,688,256 302,844,281 23,936,369 5,907,605 332,688,256
ACT
funding
559,604,000 629,454,000 0 17,600,000 647,054,000
Other state/territory funding 87,450,000 0 0 0
Total 979,742,256 932,298,281 23,936,369 5,907,605 17,600,000 979,742,256

Commonwealth ABF funding represents Acute admitted, Non-admitted, 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.

ACT funding represents funding contributions paid by the Australian Capital Territory into its own state pool account, and subsequently paid to LHNs within the territory, to the Australian Capital Territory health department and/or to other state pool accounts.

Other state/territory funding represents contributions paid to the Australian Capital Territory 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 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 – Australian Capital Territory, May 2018

This table shows funding paid into the Australian Capital Territory state managed fund by the Commonwealth and the Australian Capital Territory, and payments out of the state managed fund to LHNs and other provider organisations for May 2018.

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 1,740,262 1,740,262
State/territory Block funding 5,289,000 5,289,000
Total 7,029,262 7,029,262 0 7,029,262

See explanatory notes following table 2b.

Table 2b – State managed fund transactions YTD – Australian Capital Territory, May 2018

Following on from table 2a, this table shows year-to-date (YTD) funding paid into the Australian Capital Territory state managed fund by the Commonwealth and the Australian Capital Territory, and YTD payments out of the state managed fund to LHNs and other provider organisations as at May 2018.

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 23,936,369 23,936,369
State/territory Block funding 42,312,000 42,312,000
Total 66,248,369 66,248,369 0 66,248,369

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 Australian Capital Territory 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 – Australian Capital Territory, May 2018

This table shows NHR funding and payments by service category on both a monthly and year-to-date (YTD) basis for the Australian Capital Territory for May 2018. 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
NHR
funding YTD
NHR
payments YTD
($) ($) ($) ($)
ABF
Acute admitted 60,260,579 65,410,589 547,292,717 603,942,827
Admitted mental health 4,818,614 5,230,424 43,763,141 48,293,051
Sub-acute 5,627,918 6,108,893 51,113,321 56,404,046
Emergency department 11,172,114 12,126,909 101,466,279 111,969,024
Non-admitted 11,144,207 12,096,617 101,212,824 111,689,334
Total ABF (Pool) 93,023,432 100,973,432 844,848,281 932,298,281
Block
Small rural hospitals 347,911 343,283 3,052,139 3,235,325
Teaching, training & research 2,393,268 3,047,515 24,240,345 28,721,774
Non-admitted mental health 4,288,083 3,638,464 38,955,885 34,291,269
Other non-admitted services 0 0 0 0
Total Block (SMF) 7,029,262 7,029,262 66,248,369 66,248,369
Other
Public health funding 551,693 551,693 5,907,605 5,907,605
Overdeposit 0 0 0 0
Cross-border 9,550,000 1,600,000 105,050,000 17,600,000
Interest 0 0 0 0
Total Other (Pool) 10,101,693 2,151,693 110,957,605 23,507,605
Grand Total 110,154,387 110,154,387 1,022,054,255 1,022,054,256

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 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 – Australian Capital Territory, May 2018

This table shows NHR contributions (from state, territory and Commonwealth sources) made to each LHN in the Australian Capital Territory during May 2018.

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)
($) ($) ($)
ACT Local Hospital Network Directorate 100,973,432 7,029,262 108,002,694
Total 100,973,432 7,029,262 108,002,694

See explanatory notes below table 4b.

Table 4b – NHR contributions by local hospital network YTD – Australian Capital Territory, May 2018

This table shows YTD NHR contributions (from state, territory and Commonwealth sources) made to each LHN in the Australian Capital Territory as at May 2018.

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)
($) ($) ($)
ACT Local Hospital Network Directorate 932,298,281 66,248,369 998,546,650
Total 932,298,281 66,248,369 998,546,650

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 – Australian Capital Territory, May 2018

This table shows estimated state or territory hospital activity for activity-based funding services expressed as NWAU for May 2018, the associated cumulative year-to-date (YTD), and total estimated annual NWAU for each LHN in the Australian Capital Territory.

Local hospital network (LHN) Estimated NWAU delivered in current month Estimated NWAU delivered YTD Estimated annual NWAU 2017-18
ACT Local Hospital Network Directorate 12,865 136,506 153,649
Total 12,865 136,506 153,649

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.