National Health Reform
Public hospital funding
Issued by the Administrator of the National Health Funding Pool
under section 240 of the National Health Reform Act 2011
Available from the Public Hospital Funding website
Victorian report, May 2014
In this report
This report includes the following tables:
- State pool account transactions
- State managed fund transactions
- NHR funding and payments by service category
- NHR contributions by local hospital network
- Estimated monthly, YTD and annual activity
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 Victoria for May 2014 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 Victorian Department of Health and Human Services to view the service agreement for that LHN.
Note: Amounts shown in the monthly reports do not include the New South Wales contributions to Victoria for Albury Wodonga Health.
Basis for National Health Reform payments – Victoria, May 2014
For the basis of the Commonwealth contribution to NHR funding, see Basis of Commonwealth NHR funding, 2013-14.
The basis used to determine NHR payments to local hospital networks (LHNs) in Victoria for May 2014 was advised by the Victorian Department of Health to be as follows:
Payments in Victoria are based upon "Statement of priorities" agreements between Victorian public health services (LHNs) and the Minister for Health (or Secretary). These annual agreements detail the service profile, strategic priorities and deliverables the local hospital network will achieve in the year ahead; list the key financial, access and service performance priorities and agreed targets; and list funding estimates and associated service activity. Once agreed, Statements of priorities are published at www.health.vic.gov.au/hospitals/sops.htm (external link, opens in a new window).
Funding details are aggregated into ABF funded services (including NWAU equivalent service volume), Block funded services and Other funding for the purpose of determining payments to and from the state pool account and the state managed fund.
Payments are made twice monthly on the basis of one-twelfth of the agreed funding budget, adjusted for cash flow requirements of individual Victorian public health services.
While the basis of NHR payments are reported on a cash basis by the Administrator, LHNs generally report revenue and expenditure on an accrual basis.
Victorian LHNs receive ABF, block and other payments for different services and purposes. Adjustments are made by the Victorian Department of Health for cash flow needs and costs administered by the Department on behalf of LHNs. Due to the timing and processing of these adjustments, The Royal Women's Hospital show a negative amount for the block payment in May 2014.
Calvary Health Care Bethlehem Limited was registered as an LHN in the Victorian Funding Pool in July 2013. For this reporting period, only the state funding contribution was paid through the Funding Pool. Victoria is yet to advise the Administrator of estimated NWAU services to attract a Commonwealth contribution for the services provided by this LHN.
In March 2014, the Commonwealth provided Victoria with additional public hospital funding of $22,139,573.59 under the 2013-14 Mid-Year Economic and Fiscal Outlook (MYEFO) funding measure: Public Hospital System - additional funding. This funding was provided to offset the downward adjustment to 2013-14 NHR funding applied at the MYEFO due to the application of updated NHR funding indexation parameters. A requirement of the provision of this funding was that the funding be provided to LHNs through the National Health Funding Pool and / or State Managed Fund.
The Administrator has been advised by Victoria that the allocation of additional funding from the Commonwealth is being paid in accordance with original LHN cash-flows, and will be paid during the 2013-14 financial year.
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 – Victoria, May 2014
This table shows funding paid into the Victorian state pool account by the Commonwealth, Victoria or other states/territories, and payments out of the state pool account to LHNs, the state managed fund, the Victorian Department of Health and Human Services or the state pool accounts of other states/territories for May 2014.
|NHR funding by source||Paid Into state pool account||Paid Out of state pool account|
|To Local hospital networks||To State
|To state pool (other State)||Total paid out|
|Other state/territory funding||0||0||0||0|
See definitions and explanatory notes following table 1b.
Table 1b – State pool account transactions YTD – Victoria, May 2014
Following on from table 1a, this table shows year-to-date (YTD) funding paid into the Victorian state pool account by the Commonwealth, Victoria or other states/territories, and payments out of the state pool account to LHNs, the state managed fund, the Victorian Department of Health and Human Services or the state pool accounts of other states/territories as at May 2014.
|NHR funding by source||Paid Into state
|Paid Out of state pool account|
|To Local hospital
|To state health
|To state pool (other State)
|Total paid out
|Other state/territory funding||0||0||0||0|
Commonwealth ABF funding represents Acute admitted public, Acute admitted private, Non-admitted, and 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.
VIC funding represents funding contributions paid by Victoria into its own state pool account, and subsequently paid to LHNs within the state, to the Victorian health department and/or to other state pool accounts.
Other state/territory funding represents contributions paid to Victoria 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.
State managed fund transactions
Table 2a – State managed fund transactions – Victoria, May 2014
This table shows funding paid into the Victoria state managed fund by the Commonwealth and Victoria, and payments out of the state managed fund to LHNs and other provider organisations for May 2014.
|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||76,201,363||76,201,363|
|State/territory Block funding||-4,084,157||-4,084,157|
See explanatory notes following table 2b.
Table 2b – State managed fund transactions YTD – Victoria, May 2014
Following on from table 2a, this table shows year-to-date (YTD) funding paid into the Victorian state managed fund by the Commonwealth and Victoria, and YTD payments out of the state managed fund to local hospital networks and other provider organisations as at May 2014. These amounts include notional payments for July, August and September 2012.
|NHR funding by source||Paid into state
|Paid out of state managed fund YTD|
|To local hospital
|Total paid out
|Commonwealth Block funding||377,759,673||377,759,673|
|State/territory Block funding||618,935,981||614,851,823|
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 Victorian 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.
NHR funding and payments by service category
Table 3 – NHR funding and payments by service category – Victoria, May 2014
This table shows NHR funding and payments by service category on both a monthly and year-to-date (YTD) basis for Victoria for May 2014. 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||YTD NHR
|Acute admitted - public||*||*||*||*|
|Acute admitted - private||*||*||*||*|
|Admitted mental health||*||*||*||*|
|Total ABF (Pool)||443,629,871||443,629,871||6,467,940,168||6,467,940,168|
|Non-admitted mental health||*||*||*||*|
|Small rural hospitals||*||*||*||*|
|Teaching, training & research||*||*||*||*|
|Other non-admitted services||*||*||*||*|
|Total Block (SMF)||72,117,206||72,117,206||996,695,654||992,611,496|
|Public health funding||6,666,679||6,666,679||73,884,064||73,884,064|
|Total Other (Pool)||6,711,173||6,711,173||75,052,647||75,052,647|
*Victoria has advised it is unable to provide payment information by service category as its 2013-14 service agreements with LHNs do not set separate budgets at that level.
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, which are 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.
NHR contributions by local hospital network
Table 4a – NHR contributions by local hospital network – Victoria, May 2014
This table shows NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Victoria during May 2014.
NHR contributions to LHNs are separated into an activity-based funding (ABF) component and a block component.
|Local hospital network (LHN)||ABF component
|Total NHR payment
|Albury Wodonga Health||5,233,000||1,195,365||6,428,365|
|Alexandra District Hospital||0||341,000||341,000|
|Bairnsdale Regional Health Service||2,832,000||148,445||2,980,445|
|Ballarat Health Services||11,829,500||1,970,370||13,799,870|
|Bass Coast Regional Health||1,131,000||28,418||1,159,418|
|Beaufort & Skipton Health Service||0||254,000||254,000|
|Beechworth Health Service||0||244,000||244,000|
|Bendigo Health Care Group||11,490,738||2,909,593||14,400,331|
|Boort District Health||0||138,000||138,000|
|Calvary Health Care Bethlehem||1,449,000||51,000||1,500,000|
|Casterton Memorial Hospital||0||249,210||249,210|
|Central Gippsland Health Service||3,119,000||43,836||3,162,836|
|Cobram District Health||0||350,000||350,000|
|Cohuna District Hospital||0||306,000||306,000|
|Colac Area Health||1,337,000||14,462||1,351,462|
|Contracted Services LHN - Victoria||3,676,736||0||3,676,736|
|Dental Health Services Victoria||0||0||0|
|Djerriwarrh Health Services||2,312,000||48,445||2,360,445|
|Dunmunkle Health Services||0||65,000||65,000|
|East Grampians Health Service||956,000||40,445||996,445|
|East Wimmera Health Service||0||622,000||622,000|
|Echuca Regional Health||2,079,508||64,400||2,143,908|
|Edenhope and District Memorial Hospital||0||227,000||227,000|
|Gippsland Southern Health Service||1,057,000||13,766||1,070,766|
|Goulburn Valley Health||7,685,000||1,313,345||8,998,345|
|Hepburn Health Service||0||502,000||502,000|
|Hesse Rural Health Service||0||112,000||112,000|
|Heywood Rural Health||0||104,000||104,000|
|Inglewood & Districts Health Service||0||124,605||124,605|
|Kerang District Health||0||369,000||369,000|
|Kilmore & District Hospital||0||615,000||615,000|
|Kooweerup Regional Health Services||0||316,000||316,000|
|Kyabram & District Health Services||767,000||9,000||776,000|
|Kyneton District Health Service||0||247,000||247,000|
|Latrobe Regional Hospital||8,517,000||2,465,153||10,982,153|
|Lorne Community Hospital||0||144,000||144,000|
|Mallee Track Health and Community Service||0||237,000||237,000|
|Mansfield District Hospital||0||402,605||402,605|
|Maryborough District Health Service||947,000||12,872||959,872|
|Mercy Public Hospitals Inc.||10,496,000||1,483,807||11,979,807|
|Moyne Health Services||0||219,000||219,000|
|Nathalia District Hospital||0||117,000||117,000|
|Northeast Health Wangaratta||4,740,000||192,715||4,932,715|
|Numurkah District Health Service||0||438,000||438,000|
|Omeo District Health||0||111,000||111,000|
|Orbost Regional Health||0||351,689||351,689|
|Otway Health & Community Services||0||160,000||160,000|
|Peter MacCallum Cancer Institute||5,342,000||392,661||5,734,661|
|Portland District Health||1,313,448||129,300||1,442,748|
|Ramsay Health Care Limited (Mildura Base Hospital)||4,850,000||677,890||5,527,890|
|Robinvale District Health Services||0||336,000||336,000|
|Rochester & Elmore District Health Service||0||324,605||324,605|
|Rural Northwest Health||0||514,000||514,000|
|Seymour District Memorial Hospital||0||682,067||682,067|
|South Gippsland Hospital||0||404,983||404,983|
|South West Healthcare||5,930,595||909,977||6,840,572|
|St Vincent's Hospital (Melbourne)||22,389,000||3,607,334||25,996,334|
|Stawell Regional Health||770,000||32,000||802,000|
|Swan Hill District Health||1,809,400||39,927||1,849,327|
|Tallangatta Health Service||0||207,000||207,000|
|Terang & Mortlake Health Service||0||320,000||320,000|
|The Royal Children's Hospital||21,722,568||1,904,000||23,626,568|
|The Royal Victorian Eye & Ear Hospital||4,581,000||200,000||4,781,000|
|The Royal Women's Hospital||9,005,500||-65,265||8,940,235|
|Timboon & District Healthcare Service||0||223,563||223,563|
|Upper Murray Health & Community Services||0||233,000||233,000|
|Victorian Institute of Forensic Mental Health||0||2,929,000||2,929,000|
|West Gippsland Healthcare Group||3,332,000||131,000||3,463,000|
|West Wimmera Health Service||0||781,000||781,000|
|Western District Health Service||1,996,000||248,000||2,244,000|
|Wimmera Health Care Group||2,739,000||87,000||2,826,000|
|Yarram & District Health Service||0||309,000||309,000|
|Yea & District Memorial Hospital||0||142,000||142,000|
See explanatory notes below table 4b.
Table 4b – NHR contributions by local hospital network YTD – Victoria, May 2014
This table shows YTD NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Victoria as at May 2014.
|Local hospital network||ABF component YTD
|Block component YTD
|Total NHR payment YTD
|Albury Wodonga Health||73,444,950||16,220,538||89,665,488|
|Alexandra District Hospital||0||4,709,276||4,709,276|
|Bairnsdale Regional Health Service||38,525,000||1,103,843||39,628,843|
|Ballarat Health Services||162,125,976||24,888,480||187,014,456|
|Bass Coast Regional Health||22,512,000||962,960||23,474,960|
|Beaufort & Skipton Health Service||0||3,505,380||3,505,380|
|Beechworth Health Service||0||3,148,686||3,148,686|
|Bendigo Health Care Group||154,072,171||35,467,676||189,539,847|
|Boort District Health||0||1,883,246||1,883,246|
|Calvary Health Care Bethlehem||19,892,000||928,900||20,820,900|
|Casterton Memorial Hospital||0||2,984,224||2,984,224|
|Central Gippsland Health Service||42,408,755||1,441,445||43,850,200|
|Cobram District Health||0||4,826,054||4,826,054|
|Cohuna District Hospital||0||4,164,956||4,164,956|
|Colac Area Health||18,162,000||654,660||18,816,660|
|Contracted Services LHN - Victoria||37,333,660||0||37,333,660|
|Dental Health Services Victoria||0||15,000||15,000|
|Djerriwarrh Health Services||32,039,382||590,304||32,629,686|
|Dunmunkle Health Services||0||906,934||906,934|
|East Grampians Health Service||12,998,000||359,720||13,357,720|
|East Wimmera Health Service||0||8,455,090||8,455,090|
|Echuca Regional Health||27,958,333||1,746,446||29,704,779|
|Edenhope and District Memorial Hospital||0||2,971,503||2,971,503|
|Gippsland Southern Health Service||14,354,000||365,468||14,719,468|
|Goulburn Valley Health||104,534,187||19,047,074||123,581,261|
|Hepburn Health Service||0||6,860,106||6,860,106|
|Hesse Rural Health Service||0||1,575,880||1,575,880|
|Heywood Rural Health||0||1,990,254||1,990,254|
|Inglewood & Districts Health Service||0||1,533,792||1,533,792|
|Kerang District Health||0||5,222,826||5,222,826|
|Kilmore & District Hospital||0||8,879,102||8,879,102|
|Kooweerup Regional Health Services||0||4,312,844||4,312,844|
|Kyabram & District Health Services||10,416,000||148,608||10,564,608|
|Kyneton District Health Service||0||7,551,035||7,551,035|
|Latrobe Regional Hospital||115,142,275||30,864,639||146,006,914|
|Lorne Community Hospital||0||1,962,453||1,962,453|
|Mallee Track Health and Community Service||0||3,258,537||3,258,537|
|Mansfield District Hospital||0||5,356,241||5,356,241|
|Maryborough District Health Service||12,894,000||606,547||13,500,547|
|Mercy Public Hospitals Inc.||195,018,692||21,709,930||216,728,622|
|Moyne Health Services||0||3,021,486||3,021,486|
|Nathalia District Hospital||0||1,580,737||1,580,737|
|Northeast Health Wangaratta||65,294,604||2,517,221||67,811,825|
|Numurkah District Health Service||0||6,634,743||6,634,743|
|Omeo District Health||0||1,438,831||1,438,831|
|Orbost Regional Health||0||5,179,661||5,179,661|
|Otway Health & Community Services||0||2,208,556||2,208,556|
|Peter MacCallum Cancer Institute||71,596,000||8,283,753||79,879,753|
|Portland District Health||17,801,448||745,866||18,547,314|
|Ramsay Health Care Limited (Mildura Base Hospital)||67,327,526||8,638,911||75,966,437|
|Robinvale District Health Services||0||4,617,904||4,617,904|
|Rochester & Elmore District Health Service||0||4,132,533||4,132,533|
|Rural Northwest Health||0||6,972,276||6,972,276|
|Seymour District Memorial Hospital||0||9,841,032||9,841,032|
|South Gippsland Hospital||0||4,581,787||4,581,787|
|South West Healthcare||78,844,426||13,774,803||92,619,229|
|St Vincent's Hospital (Melbourne)||303,420,308||47,708,537||351,128,845|
|Stawell Regional Health||10,469,000||404,335||10,873,335|
|Swan Hill District Health||24,292,400||936,144||25,228,544|
|Tallangatta Health Service||0||2,800,963||2,800,963|
|Terang & Mortlake Health Service||0||4,444,641||4,444,641|
|The Royal Children's Hospital||296,764,600||24,976,355||321,740,955|
|The Royal Victorian Eye & Ear Hospital||62,344,000||2,419,100||64,763,100|
|The Royal Women's Hospital||158,005,925||-859,132||157,146,793|
|Timboon & District Healthcare Service||0||3,202,261||3,202,261|
|Upper Murray Health & Community Services||0||3,120,670||3,120,670|
|Victorian Institute of Forensic Mental Health||0||40,286,851||40,286,851|
|West Gippsland Healthcare Group||46,350,506||2,033,974||48,384,480|
|West Wimmera Health Service||0||10,628,259||10,628,259|
|Western District Health Service||27,195,000||3,821,719||31,016,719|
|Wimmera Health Care Group||37,309,000||1,060,868||38,369,868|
|Yarram & District Health Service||0||4,213,385||4,213,385|
|Yea & District Memorial Hospital||0||1,951,308||1,951,308|
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.
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 – Victoria, May 2014
This table shows estimated state or territory hospital activity for activity-based funding services expressed as NWAU for May 2014, the associated cumulative year-to-date (YTD), and total estimated annual NWAU for each LHN in Victoria.
|Local hospital network (LHN)||Estimated NWAU funded in current month||Estimated NWAU funded YTD||Estimated annual NWAU 2013-14|
|Albury Wodonga Health||1,372||15,092||17,453|
|Bairnsdale Regional Health Service||919||10,109||11,169|
|Ballarat Health Services||3,583||39,413||43,175|
|Bass Coast Regional Health||524||5,764||6,179|
|Bendigo Health Care Group||3,745||41,195||44,878|
|Calvary Health Care Bethlehem||0||0||0|
|Central Gippsland Health Service||898||9,878||10,859|
|Colac Area Health||333||3,663||3,916|
|Contracted Services LHN - Victoria||756||8,316||9,006|
|Djerriwarrh Health Services||562||6,182||7,026|
|East Grampians Health Service||263||2,893||3,064|
|Echuca Regional Health||543||5,973||6,465|
|Gippsland Southern Health Service||274||3,014||3,248|
|Goulburn Valley Health||2,319||25,509||27,716|
|Kyabram & District Health Services||220||2,420||2,574|
|Latrobe Regional Hospital||2,590||28,490||31,537|
|Maryborough District Health Service||254||2,794||2,976|
|Mercy Public Hospitals Inc.||4,149||45,639||53,048|
|Northeast Health Wangaratta||1,457||16,027||17,509|
|Peter MacCallum Cancer Institute||1,736||19,096||20,273|
|Portland District Health||344||3,784||4,042|
|Ramsay Health Care Limited (Mildura Base Hospital)||1,526||14,242||18,239|
|South West Healthcare||1,599||17,589||20,002|
|St Vincent's Hospital (Melbourne)||6,503||71,533||77,323|
|Stawell Regional Health||226||2,486||2,624|
|Swan Hill District Health||539||5,929||6,394|
|The Royal Children's Hospital||5,387||59,257||63,868|
|The Royal Victorian Eye & Ear Hospital||1,546||17,006||18,392|
|The Royal Women's Hospital||3,232||35,552||42,152|
|West Gippsland Healthcare Group||1,021||11,231||12,478|
|Western District Health Service||611||6,721||7,245|
|Wimmera Health Care Group||791||8,701||9,385|
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.