National report - October 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 at an aggregated national level for October 2018.

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 a LHN.

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, LHNs receive funding in 2018-19 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 National Health Reform 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 Department of Health in the relevant state or territory to view the service agreement for that LHN.

Note: Amounts shown in the monthly reports do not include funding received by Victoria from New South Wales as contributions for Albury Wodonga Health.

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.

For the basis of state and territory NHR payments, see Basis for National Health Reform payments explanation in the relevant state or territory report for October 2018, see State or territory reports.

NHR funding and payments

Table 1 – NHR funding and payments for each state and territory – October 2018

This table shows NHR funding and payments for each state and territory for October 2018.

State/territory NHR funding NHR payments NHR funding
YTD
NHR payments
YTD
($) ($) ($) ($)
NSW 1,323,682,885 1,323,682,885 5,050,782,904 5,050,782,904
VIC 1,031,985,439 1,031,985,439 4,405,898,241 4,405,898,241
QLD 924,107,901 924,053,809 3,974,096,164 3,973,938,732
WA 532,109,695 528,716,489 1,209,045,160 1,205,651,930
SA 258,595,043 326,821,035 1,300,897,522 1,157,936,760
TAS 93,635,111 93,635,114 414,733,035 414,733,034
ACT 123,815,149 123,815,149 397,527,370 397,527,370
NT 98,970,629 98,969,597 396,507,830 396,503,706
Total 4,386,901,852 4,451,679,517 17,149,488,226 17,002,972,678

Differences between NHR funding and NHR payments for a state or territory can occur for several reasons, such as having funds remaining in its state pool account at the end of the month, drawing down on available funds from previous months, or having an overdraft in its state pool account at the end of the month.

NHR funding and payments shown in this table include GST where applicable.

Commonwealth and state or territory NHR funding components are detailed in the following tables.

NHR funding by funding source

Table 2a – NHR funding by funding source for each state and territory – October 2018

This table shows NHR funding by the source of funds for each state and territory for October 2018.

Sources of NHR funding are separated into Commonwealth funding, Own state or territory funding (where a state or territory provides its own funding) and Funding from other state or territory (where other states or territories contribute cross-border funding towards the cost of their residents being treated in the provider state or territory).

State/territory NHR funding by source
Commonwealth NHR funding Own state/territory NHR funding NHR funding
from other state/territory
Total NHR funding
($) ($) ($) ($)
NSW 604,727,920 713,304,964 5,650,000 1,323,682,885
VIC 390,186,639 637,773,800 4,025,000 1,031,985,439
QLD 569,900,159 349,207,742 5,000,000 924,107,901
WA 190,901,368 341,208,327 0 532,109,695
SA 101,047,404 157,547,639 0 258,595,043
TAS 36,646,107 56,989,004 0 93,635,111
ACT 38,248,149 77,307,000 8,260,000 123,815,149
NT 22,611,264 76,359,364 0 98,970,629
Total 1,954,269,011 2,409,697,841 22,935,000 4,386,901,852

See explanatory notes following table 2b.

Table 2b – NHR funding by funding source for each state and territory YTD – October 2018

Following on from table 2a, this table shows year-to-date (YTD) NHR funding by the source of funds for each state and territory as at October 2018.

State/territory NHR funding by source
Commonwealth NHR funding
YTD
Own state/territory NHR funding
YTD
NHR funding
from other state/territory
YTD
Total NHR funding
YTD
($) ($) ($) ($)
NSW 2,214,234,986 2,813,947,918 22,600,000 5,050,782,904
VIC 1,701,632,582 2,688,165,660 16,100,000 4,405,898,241
QLD 1,622,554,617 2,331,541,547 20,000,000 3,974,096,164
WA 749,333,348 459,711,812 0 1,209,045,160
SA 440,031,047 860,866,476 0 1,300,897,522
TAS 145,019,481 269,713,553 0 414,733,035
ACT 132,566,370 231,921,000 33,040,000 397,527,370
NT 91,070,373 305,437,457 0 396,507,830
Total 7,096,442,803 9,961,305,423 91,740,000 17,149,488,226

NHR funding shown in these tables includes GST where applicable.

NHR funding by funding type

Table 3a – NHR funding by funding type for each state and territory – October 2018

This table shows NHR funding for each state and territory by funding type and source for October 2018. NHR funding can be activity-based funding (ABF), block funding or other funding, such as public health funding, cross-border, interest or overdeposits.

Sources of NHR funding are separated into Commonwealth funding, Own state or territory funding (where a state or territory provides its own funding) and Funding from other state or territory (where other states or territories contribute cross-border funding towards the cost of their residents being treated in the provider state or territory).

State/territory NHR funding type Commonwealth NHR funding Own state/territory NHR funding NHR funding
from other state/territory
Total NHR funding
($) ($) ($) ($)
NSW ABF 516,479,757 564,479,856 0 1,080,959,613
Block 77,567,272 131,385,323 0 208,952,595
Other 10,680,891 17,439,785 5,650,000 33,770,677
Total 604,727,920 713,304,964 5,650,000 1,323,682,885
VIC ABF 328,455,626 563,367,453 0 891,823,080
Block 52,454,035 74,215,878 0 126,669,913
Other 9,276,978 190,468 4,025,000 13,492,446
Total 390,186,639 637,773,800 4,025,000 1,031,985,439
QLD ABF 520,326,940 256,707,881 0 777,034,821
Block 42,823,393 84,245,769 0 127,069,162
Other 6,749,825 8,254,092 5,000,000 20,003,918
Total 569,900,159 349,207,742 5,000,000 924,107,901
WA ABF 160,612,703 307,383,460 0 467,996,163
Block 27,214,970 33,824,860 0 61,039,829
Other 3,073,694 8 0 3,073,702
Total 190,901,368 341,208,327 0 532,109,695
SA ABF 83,052,824 130,000,000 0 213,052,824
Block 15,689,462 27,300,000 0 42,989,462
Other 2,305,118 247,639 0 2,552,756
Total 101,047,404 157,547,639 0 258,595,043
TAS ABF 29,623,253 34,341,909 0 63,965,162
Block 6,322,050 22,647,095 0 28,969,145
Other 700,804 0 0 700,804
Total 36,646,107 56,989,004 0 93,635,111
ACT ABF 35,009,186 68,376,000 0 103,385,186
Block 2,632,513 8,931,000 0 11,563,513
Other 606,450 0 8,260,000 8,866,450
Total 38,248,149 77,307,000 8,260,000 123,815,149
NT ABF 20,487,282 24,526,583 0 45,013,866
Block 1,795,782 51,831,750 0 53,627,532
Other 328,200 1,031 0 329,231
Total 22,611,264 76,359,364 0 98,970,629
Total ABF funding 1,694,047,572 1,949,183,143 0 3,643,230,715
Total Block funding 226,499,478 434,381,675 0 660,881,152
Total Other funding 33,721,961 26,133,023 22,935,000 82,789,984
Grand Total 1,954,269,011 2,409,697,841 22,935,000 4,386,901,852

See explanatory notes following table 3b.

Table 3b – NHR funding by funding type for each state and territory YTD – October 2018

Following on from table 3a, this table shows year-to-date (YTD) NHR funding for each state and territory by funding type and source for October 2018. NHR funding can be activity-based funding (ABF), block funding or other, such as public health funding, cross-border, interest or overdeposits.

State/territory NHR funding type Commonwealth NHR funding
YTD
Own state/territory NHR funding
YTD
NHR funding
from other state/territory
YTD
Total NHR funding
YTD
($) ($) ($) ($)
NSW ABF 1,877,065,079 2,136,856,866 0 4,013,921,944
Block 293,878,559 607,273,462 0 901,152,021
Other 43,291,348 69,817,591 22,600,000 135,708,939
Total 2,214,234,986 2,813,947,918 22,600,000 5,050,782,904
VIC ABF 1,465,424,777 2,348,306,811 0 3,813,731,589
Block 200,549,214 338,951,809 0 539,501,023
Other 35,658,590 907,039 16,100,000 52,665,629
Total 1,701,632,582 2,688,165,660 16,100,000 4,405,898,241
QLD ABF 1,436,922,568 1,909,821,013 0 3,346,743,581
Block 158,490,687 388,763,102 0 547,253,789
Other 27,141,363 32,957,432 20,000,000 80,098,795
Total 1,622,554,617 2,331,541,547 20,000,000 3,974,096,164
WA ABF 636,933,154 349,219,981 0 986,153,135
Block 98,680,285 110,491,799 0 209,172,084
Other 13,719,909 32 0 13,719,941
Total 749,333,348 459,711,812 0 1,209,045,160
SA ABF 370,163,304 802,000,000 0 1,172,163,304
Block 60,494,650 58,100,000 0 118,594,650
Other 9,373,092 766,476 0 10,139,568
Total 440,031,047 860,866,476 0 1,300,897,522
TAS ABF 119,099,564 137,426,434 0 256,525,998
Block 23,088,703 132,281,891 0 155,370,594
Other 2,831,214 5,228 0 2,836,442
Total 145,019,481 269,713,553 0 414,733,035
ACT ABF 120,829,007 205,128,000 0 325,957,007
Block 9,430,793 26,793,000 0 36,223,793
Other 2,306,569 0 33,040,000 35,346,569
Total 132,566,370 231,921,000 33,040,000 397,527,370
NT ABF 82,624,027 98,106,333 0 180,730,360
Block 7,117,495 207,327,000 0 214,444,495
Other 1,328,851 4,124 0 1,332,975
Total 91,070,373 305,437,457 0 396,507,830
Total ABF funding 6,109,061,480 7,986,865,438 0 14,095,926,918
Total Block funding 851,730,387 1,869,982,064 0 2,721,712,450
Total Other funding 135,650,937 104,457,921 91,740,000 331,848,857
Grand Total 7,096,442,803 9,961,305,423 91,740,000 17,149,488,226

ABF funding represents Acute admitted, Non-admitted, Emergency department, Sub-acute, and Admitted mental health service categories, which are funded through the National Health Funding Pool and subsequently paid to local hospital networks.

Block funding represents Non-admitted mental health, Small rural hospitals, Teaching, training and research, and Other non-admitted categories, which are funded through state managed funds and subsequently paid to local hospital networks.

Other funding represents other funding sources which are transacted through the National Health Funding Pool, such as public health funding, cross-border, interest or overdeposits, and subsequently paid to state or territory health departments (with the exception of cross-border funding which can be paid to state or territory health departments or to local hospital networks).

NHR funding shown in these tables includes GST where applicable.

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 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 4 – Estimated monthly, YTD and annual NWAU by each state and territory – October 2018

This table shows estimated hospital activity for each state and territory for activity-based funding services expressed as NWAU for the current month, year-to-date (YTD) and total estimated annual NWAU.

State/territory Estimated NWAU
delivered/funded in
current month
Estimated NWAU
delivered/funded YTD
Estimated annual
NWAU 2017-18
NSW 226,861 907,443 2,722,327
VIC 184,586 738,344 2,215,000
QLD 155,500 622,000 1,866,000
WA 74,647 303,323 885,540
SA 55,427 200,026 595,071
TAS 13,473 53,852 151,628
ACT 13,549 47,956 158,697
NT 14,384 56,343 169,176
Total 738,427 2,929,286 8,763,439

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, weighted for 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 delivered in the month.