Tasmanian report, May 2013

In this report

This report includes the following tables:

• State pool account transactions
  • Table 1a – State pool account transactions – Tasmania, May 2013
  • Table 1b – State pool account transactions YTD – Tasmania, May 2013
• State managed fund transactions
  • Table 2a – State managed fund transactions – Tasmania, May 2013
  • Table 2b – State managed fund transactions YTD – Tasmania, May 2013
• NHR funding and payments by service category
  • Table 3 – NHR funding and payments by service category – Tasmania, May 2013
• NHR payment distribution by local hospital network
  • Table 4 – NHR payment distribution by local hospital network – Tasmania, May 2013
• Estimated monthly, YTD and annual NWAU by local hospital network
  • Table 5 – Estimated monthly, YTD and annual NWAU by local hospital network – Tasmania, May 2013

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 Tasmania for May 2013 as part of the National Health Reform Agreement.

Participation in the National Health Funding Pool – Tasmania, May 2013

In signing the National Health Reform Agreement (the Agreement), it was the intention of all states and territories that they would have the necessary legislation in place to enable them to participate in the National Health Funding Pool from 1 July 2012.

Tasmania has participated in the National Health Funding Pool since 1 July 2012.

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. 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 terminology to describe these networks, such as local health districts, health organisations, and hospital and health services.

Under the Agreement, local hospital networks 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: 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 Tasmanian Department of Health and Human Services to view the service agreement for that local hospital network.

Basis for National Health Reform payments – Tasmania, May 2013

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

The basis used to determine NHR payments to local hospital networks (LHNs) in Tasmania for May 2013 was advised by the Tasmanian Department of Health and Human Services to be as follows:

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 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 – Tasmania, May 2013

This table shows funding paid into the Tasmanian state pool account by the Commonwealth and Tasmania, and payments out of the state pool account to local hospital networks, the state managed fund, and the Tasmanian Department of Health and Human Services for May 2013.

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	Total paid out
	($)	($)	($)	($)	($)
Commonwealth ABF funding	19,164,320	19,164,320			19,164,320
Commonwealth Block funding	4,263,944		4,263,944		4,263,944
Commonwealth Other funding	563,953			563,953	563,953
Total C'wealth funding	23,992,218	19,164,320	4,263,944	563,953	23,992,218
Total state/territory funding	21,080,634	21,080,586		0	21,080,586
Grand Total	45,072,852	40,244,906	4,263,944	563,953	45,072,804

See definitions and explanatory notes following table 1b.

Table 1b – State pool account transactions YTD – Tasmania, May 2013

Following on from table 1a, this table shows year-to-date (YTD) funding paid into the Tasmanian state pool account by the Commonwealth and Tasmania, and YTD payments out of the state pool account to local hospital networks, the state managed fund, and the Tasmanian Department of Health and Human Services as at May 2013.

NHR funding by source	Paid into state pool account YTD	Paid out of state pool account YTD
		To local hospital networks YTD	To state managed fund YTD	To state health department YTD	Total paid out YTD
	($)	($)	($)	($)	($)
Commonwealth ABF funding	214,317,361	214,317,361			214,317,361
Commonwealth Block funding	47,684,303		47,684,303		47,684,303
Commonwealth Other funding	6,272,898			6,272,898	6,272,898
Total C'wealth funding	268,274,562	214,317,361	47,684,303	6,272,898	268,274,562
Total state/territory funding	225,452,097	225,431,880		0	225,431,880
Grand Total	493,726,659	439,749,241	47,684,303	6,272,898	493,706,441

Commonwealth ABF funding represents Acute admitted public, Acute admitted private, Non-admitted, and Emergency department service categories, which are funded by the Commonwealth through the state pool account and subsequently paid to local hospital networks.

Commonwealth Block funding represents Mental health, Small rural and metropolitan hospitals, Sub-acute, Teaching, training and research, and Other 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.

State/territory funding represents funding contributions paid by Tasmania into its own state pool account, and subsequently paid to local hospital networks within the state and/or to state or territory health departments.

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 or territory 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 – Tasmania, May 2013

This table shows funding paid into the Tasmanian state managed fund by the Commonwealth and Tasmania, and payments out of the state managed fund to local hospital networks and other provider organisations for May 2013.

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	4,263,944			4,263,944
State/territory Block funding	26,719,075			26,719,075
Total	30,983,019	29,842,009	1,141,011	30,983,019

See explanatory notes following table 2b.

Table 2b – State managed fund transactions YTD – Tasmania, May 2013

Following on from table 2a, this table shows year-to-date (YTD) funding paid into the Tasmanian state managed fund by the Commonwealth and Tasmania, and YTD payments out of the state managed fund to local hospital networks and other provider organisations as at May 2013.

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	47,684,303			47,684,303
State/territory Block funding	207,628,992			207,628,992
Total	255,313,295	242,553,208	12,760,088	255,313,295

Block funding represents Mental health, Small rural and metropolitan hospitals, Sub-acute, Teaching, training and research, and Other 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 local hospital networks and other provider organisations.

State/territory Block funding represents Tasmanian block funding contributions into the state managed fund, and block payments out of the state managed fund to local hospital networks 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 – Tasmania, May 2013

This table shows NHR funding and payments by service category on both a monthly and year-to-date (YTD) basis for Tasmania for May 2013. 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 - public	29,707,813	29,707,813	322,389,790	322,389,790
Acute admitted - private	2,893,879	2,893,879	31,402,473	31,402,473
Non-admitted	3,440,391	3,440,391	37,338,934	37,338,934
Emergency department	4,202,824	4,202,824	48,618,043	48,618,043
Total ABF (Pool)	40,244,906	40,244,906	439,749,241	439,749,241
Block
Mental health	1,077,700	1,141,011	12,052,077	12,760,088
Small rural and metro hospitals	10,056,570	9,994,503	80,977,762	80,286,939
Sub-acute	3,891,679	3,891,450	33,819,341	33,816,327
Teaching, training and research	1,548,813	1,548,727	11,514,758	11,513,198
Other	14,408,256	14,407,329	116,949,359	116,936,744
Total Block (SMF)	30,983,019	30,983,019	255,313,295	255,313,295
Other
Public health funding	563,953	563,953	6,272,898	6,272,898
Overdeposit	0	0	0	0
Cross-border	0	0	0	0
Interest	48	0	20,218	0
Total Other (Pool)	564,001	563,953	6,293,116	6,272,898
Grand Total	71,791,927	71,791,879	701,355,652	701,335,434

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 local hospital networks - 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 local hospital networks are already being funded for the cost of treating cross-border patients - shown in the Cross-border row under Other in the above table.

Cross-border funding arrangements between states and territories are yet to be put in place for state and territory contributions.

NHR funding and payments shown in these tables include GST where applicable.

For more information, see National Health Reform funding and payments.

NHR payment distribution by local hospital network

Table 4 – NHR payment distribution by local hospital network – Tasmania, May 2013

This table shows NHR payments (from state, territory and Commonwealth sources) made to each local hospital network (LHN) in Tasmania during May 2013.

NHR payments distributed to local hospital networks (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 payments (ex GST)
	($)	($)	($)
Tasmanian Health Organisation - North	14,580,002	11,440,308	26,020,310
Tasmanian Health Organisation - North West	4,841,522	6,501,345	11,342,867
Tasmanian Health Organisation - South	20,823,383	11,900,356	32,723,738
Total	40,244,906	29,842,009	70,086,915

A local hospital network (LHN) is an organisation that provides public hospital services in accordance with the National Health Reform 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.

NHR payments in this table are GST exclusive to enable comparability of NHR payments in each local hospital network report.

Note: This table excludes GST and payments to other provider organisations (non-local hospital networks).
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 more information, see National Health Reform funding and payments.

Estimated monthly, YTD and annual NWAU by local hospital network

States and territories provide NHR funding amounts and service volumes as service 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.

Table 5 – Estimated monthly, YTD and annual NWAU by local hospital network – Tasmania, May 2013

This table shows estimated state or territory hospital activity for activity-based funding services expressed as NWAU for May 2013, the associated cumulative year-to-date (YTD), and total estimated annual NWAU for each local hospital network in Tasmania.

Local hospital network (LHN)	Estimated NWAU delivered in current month	Estimated NWAU delivered YTD	Estimated annual NWAU 2012-13
Tasmanian Health Organisation - North	3,250	34,218	37,209
Tasmanian Health Organisation - North West	1,169	12,953	14,002
Tasmanian Health Organisation - South	5,301	53,187	57,757
Total	9,720	100,358	108,968

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.