2015-16 Administrator National Health Funding Pool Annual Report

The Administrator of the National Health Funding Pool is required to prepare an Annual Report of operations and present it to Commonwealth and state and territory Health Ministers for tabling in their respective Parliaments.

This Annual Report includes the mandatory reporting of:

  1. An individual financial statement for each state and territory’s State Pool Account and a combined financial statement.
  2. National health reform funding and payments, including number of weighted hospital services delivered.

State and territory financial statements are audited by the relevant Auditor–General

report covers

This Annual Report should be read in conjunction with the National Health Funding Body 2015–16 Annual Report.

The $41 billion on the cover page in payments to Australian public hospitals represents the amounts paid to local hospital networks from the State Pool Accounts and State Managed Funds, for weighted public hospital services. Further detail can be found on page iii.

FURTHER INFORMATION

If you require further information or have any queries in relation to this Annual Report, please contact:

The Administrator, National Health Funding Pool
GPO Box 1252
Canberra ACT 2601
Phone 1300 930 522
Media 02 6289 7425
Email nhfa.administrator@nhfa.gov.au

An accessible copy of this Annual Report is available online at:
www.publichospitalfunding.gov.au/publications/annual-reports

ACHIEVEMENTS 2015–16

$41.4 BILLION OF COMMONWEALTH, STATE AND TERRITORY FUNDING TO LOCAL HOSPITAL NETWORKS AND OTHER PROVIDERS, MADE UP OF:

$35.8 BILLION IN ACTIVITY BASED FUNDING

$2.0 BILLION IN BLOCK FUNDING FROM THE STATE POOL ACCOUNTS

$3.6 BILLION IN BLOCK FUNDING FROM THE STATE MANAGED FUNDS

Advice provided to the Commonwealth Treasurer on $17.2 billion of Commonwealth funding made up of $16.9 billion for public health, block and activity based funding and a reconciliation of $328 million for services provided in 2014–15 to local hospital networks.

7,712,325 weighted public hospital services funded measured in National Weighted Activity Units (NWAU).

5,279 funding and payment transactions processed through the Administrator's National Health Payments System.

1,780 Monthly Reports published on national health reform funding and payment flows (including national, state and territory and local hospital network reports) on the Administrator of the National Health Funding Pool website publichospitalfunding.gov.au

The Administrator was ably assisted by the National Health Funding Body in the performance of his functions.

LETTER OF TRANSMITTAL

NHFB logo

Office of the Administrator

GPO Box 1252 Canberra ACT 2601

Telephone: 1300 930 522

Email: nhfa.administrator@nhfa.gov.au

19 October 2016

The Hon. Sussan Ley MP
Minister for Health
Commonwealth of Australia

The Hon. Jill Hennessy MP
Minister for Health
Victoria

The Hon. Kim Hames MLA
Minister for Health
Western Australia

The Hon. Michael Ferguson MP
Minister for Health
Tasmania

The Hon. Natasha fyles MLA
Minister for Health
Northern Territory

The Hon. Jillian Skinner MP
Minister for Health
New South Wales

The Hon. Cameron Dick MP
Minister for Health
Queensland

The Hon. Jack Snelling MP
Minister for Health
South Australia

The Hon. Andrew Barr MLA
Chief Minister
Australian Capital Territory

Dear Ministers,

Administrator of the National Health Funding Pool Annual Report 2015–16

I am pleased to submit to you, for tabling in your respective Parliaments, my Annual Report for the year ended 30 June 2016.

This report has been prepared in accordance with the requirements of sections 241 to 243 of the Commonwealth National Health Reform Act 2011 (the Act) and corresponding state and territory national health reform legislation.

The report includes a combined Financial Statement of the National Health Funding Pool accounts, and a Financial Statement for each state and territory State Pool Account audited by the respective Auditor-General. The report also includes the reporting required under section 241(2) of the Act on national health reform funding and payments, on a national level and for each state and teritory.

Yours sincerely,

Administrator’s signature

Peter Achterstraat AM
Administrator
National Health Funding Pool

NATIONAL HEALTH REFORM REPORTING


SCOPE OF REPORTING

SCOPE OF REPORTING

The scope of reporting in the Administrator and NHFB annual reports is funding and payments processed through the National Health Funding Pool and State Managed Funds. This comprises activity based, block and public health funding, which represents the majority of public hospital activity. It may differ from reports published by the Australian Institute of Health and Welfare, states, territories and local hospital networks, due to the inclusion or exclusion of other funding such as specific purpose payments, own source revenue or personal contributions.


NATIONAL HEALTH REFORM FUNDING RECEIPTS 2015–2016

NATIONAL HEALTH REFORM FUNDING RECEIPTS 2015-2016


FUNDING RECEIPTS BY SOURCE

FUNDING RECEIPTS BY SOURCE


FUNDING RECEIPTS BY TYPE

FUNDING RECEIPTS BY TYPE


PAYMENTS TO AUSTRALIAN PUBLIC HOSPITALS BY SOURCE

PAYMENTS TO AUSTRALIAN PUBLIC HOSPITALS BY SOURCE


NUMBER OF WEIGHTED PUBLIC HOSPITAL SERVICES FUNDED

NUMBER OF WEIGHTED PUBLIC HOSPITAL SERVICES FUNDED

Further details on the basis of these amounts can be found in the relevant state or territory section of this Annual Report, or at publichospitalfunding.gov.au. The Administrator is assisted by the NHFB. For further details of the NHFB's operations, please see the NHFB 2015–16 Annual Report or nhfb.gov.au.

MESSAGE FROM THE ADMINISTRATOR

I am pleased to present my Annual Report for the year ended 30 June 2016, the fourth year of operation of the National Health Funding Pool and the Administrator role. It is a privilege to take up the important role of Administrator, and during my appointment I intend to discharge my duties independently as a statutory office holder of the Commonwealth, and each state and territory.

Personal health and wellbeing is a significant part of every life, as is an efficient and effective hospital system for the community in general. Acknowledging these fundamentals, as Administrator, I will endeavour to promote transparency of the funding and payment flows for the benefit of all Australians.

The Administrator, supported by the National Health Funding Body (NHFB), is responsible for overseeing Commonwealth and state and territory funding and payments, informing the sustainability of public hospital funding.

For 2015–16 a total of $41.4 billion2 was paid to local hospital networks for services, an increase of $3.1 billion from the $38.2 billion3 paid in 2014–15. Following the implementation of nationally consistent activity based funding in 2012–13, the Administrator has worked collaboratively with all stakeholders to inform the efficient growth of public hospital services.

This Annual Report details the funding and payments provided to local hospital networks by the Commonwealth and states and territories which represent the vast majority of hospital services delivered. For 2015–16 a total of 7,712,325 weighted public hospital services were funded nationally. Included is a combined financial statement of all jurisdictions, a financial statement for each state and territory Pool account audited by the respective Auditor–General, together with broader national health reform statutory reports.

It has been a dynamic year for the operations of the Administrator and the NHFB, culminating in the Council of Australian Governments (COAG) agreement on 1 April 2016 to the Heads of Agreement between the Commonwealth and the States and Territories on Public Hospital Funding (Heads of Agreement). This retains activity based funding, the role of the Administrator and the NHFB, and the reform objectives of the National Health Reform Agreement from 2017–18 to 2019–20.

The opportunities that arise from the continuation of activity based funding, the efficient price, and the transparency of the respective funding contributions by governments to public hospital services are valuable in deepening our understanding of health system resource utilisation.

The 2015–16 Annual Report captures the work of my predecessors, Mr Bob Sendt, who retired on 1 August 2015, and Mr Kim Snowball, the Acting Administrator from 1 August 2015 to 22 February 2016. The quality of the work detailed in this report is a testament to their commitment to achieving the intent of the National Health Reform Agreement.

My role requires strong relationships with states, territories, the Commonwealth and other national health agencies. I would like to thank those that have contributed to the effectiveness of these relationships, and look forward to strengthening our partnerships during my tenure as Administrator.

Finally, I would like to acknowledge the work of the NHFB in their role of assisting me and the previous Administrators to discharge the responsibilities of the role. The dedication of the small team at the NHFB is to be commended.

Photo of Peter Achterstraat AM

Peter Achterstraat AM

Administrator,
National Health Funding Pool


ANNUAL REPORTING: LEGISLATIVE REQUIREMENTS

This reporting is pursuant to the following jurisdictional national health reform legislation:

TABLE 1: JURISDICTIONAL NATIONAL HEALTH REFORM LEGISLATION

JURISDICTION AND RELEVANT ACT REQUIREMENT FOR THE FINANCIAL YEAR COMMONWEALTH National Health Reform Act 2011 NEW SOUTH WALES Health Services Act 1997 VICTORIA Health (Commonwealth State Funding Arrangements) Act 2012 QUEENSLAND Hospital and Health Boards Act 2011
Administrator's Annual Report The Administrator must, within 4 months after the end of each financial year, provide to the responsible Ministers an annual report on the exercise or performance of their functions. s.241(1) schedule 6A
clause 16(1)
s.17(1) s.53S(1)
Financial Statements The Administrator must prepare a financial statement for each State Pool Account and a combined financial statement. s.241(3) and s.242 schedule 6A clauses 16(3) and 17 s.17(3) and s.18 s.53S(3) and s.53T
Audit of Financial Statements A financial statement for the State Pool Account is to be audited by the relevant Auditor–General. s.243 schedule 6A
clause 18
s.19 s.53U
National Health Reform Funding and Payments Reporting The Administrator's annual report must include the: amounts paid into the State Pool Account and State Managed Fund and the number of weighted hospital services funded. s.241(2) schedule 6A
clause 16(2)
s.17(2) s.53S(2)
Tabling of the Annual Report A responsible Minister must cause a copy of the report to be tabled in the Parliament of the relevant jurisdiction. s.241(4) schedule 6A
clause 16(4)
s.17(4) s.53S(4)
JURISDICTION AND RELEVANT ACT WESTERN AUSTRALIA National Health Funding Pool Act 2012 SOUTH AUSTRALIA National Health Funding Pool Administration (South Australia) Act 2012 TASMANIA National Health Funding Administration Act 2012 AUSTRALIAN CAPITAL TERRITORY Health (National Health Funding Pool and Administration) Act 2013 NORTHERN TERRITORY National Health Funding Pool and Administration (National Uniform Legislation) Act 2012
Administrator's Annual Report s.19(1) s.22(1) s.18(1) s.25(1) s.18(1)
Financial Statements s.19(3) and s.20 s.22(3) and
s.23
s.18(3) and s.19 s.25(3)
and s.26
s.18(3)
and s.19
Audit of Financial Statements s.53U s.21 s.24 s.20 s.27
National Health Reform Funding and Payments Reporting s.19(2) s.22(2) s.18(2) s.25(2) s.18(2)
Tabling of the Annual Report s.19(4) s.22(4) s.18(4) s.25(4) s.18(4)

Footnotes

2 Achievements 2015–16, page iii.

3 Administrator National Health Funding Pool 2014–15 Annual Report, publichospitalfunding.gov.au/publication/annual-reports