Western Australian 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 for Western Australia for October 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 WA Department of Health to view the service agreement for that LHN.

Basis for National Health Reform payments – Western Australia, October 2018

For the basis of the Commonwealth contribution to NHR funding, see Basis of Commonwealth NHR funding, 2018-19.

The basis used to determine NHR payments to LHNs in Western Australia for October 2018 is as follows:

Service agreements between the Department of Health (the Department) and Health Service Providers (HSPs) are based on the Department’s funding and purchasing policies and resource allocation models.

The Western Australia Activity- Based Funding (WA ABF) model determines the price at which the Department purchases services from HSPs and the type and volume of services that are purchased. Metropolitan public hospitals and Regional and District rural hospitals are funded through the WA ABF model. The WA ABF model is based on the national ABF model however, it includes a range of modifications reflecting WA funding principles and purchasing mechanisms.

Small rural hospitals are funded through block funding arrangements which, although based on the National Efficient Cost Determination contain some funding modifications.

The vast majority of non-hospital services are block-funded. Block funding is based on budget to budget build from the previous year using WA State Government funding parameters consistent with the WA State budget.

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 – Western Australia, October 2018

This table shows funding paid into the Western Australian state pool account by the Commonwealth, Western Australia or other states/territories, and payments out of the state pool account to LHNs, the state managed fund, the WA Department of Health or the state pool accounts of other states/territories for October 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
160,612,703 160,612,703 160,612,703
Commonwealth
Block funding
27,214,970 27,214,970 27,214,970
Commonwealth
Other funding
3,073,694 3,073,694 3,073,694
Total C'wealth
funding
190,901,368 160,612,703 27,214,970 3,073,694 190,901,368
WA
funding
307,383,468 307,383,460 0 0 307,383,460
Other state/territory funding 0 0 0 0
Total 498,284,835 467,996,163 27,214,970 3,073,694 0 498,284,828

See definitions and explanatory notes following table 1b.

Table 1b – State pool account transactions YTD – Western Australia, October 2018

Following on from table 1a, this table shows year-to-date (YTD) funding paid into the Western Australian state pool account by the Commonwealth, Western Australia or other states/territories, and payments out of the state pool account to LHNs, the state managed fund, the WA Department of Health or the state pool accounts of other states/territories as at October 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
636,933,154 636,933,154 636,933,154
Commonwealth
Block funding
98,680,285 98,680,285 98,680,285
Commonwealth
Other funding
13,719,909 13,719,909 13,719,909
Total C'wealth
funding
749,333,348 636,933,154 98,680,285 13,719,909 749,333,348
WA
funding
349,220,013 349,219,981 0 0 349,219,981
Other state/territory funding 0 0 0 0
Total 1,098,553,361 986,153,135 98,680,285 13,719,909 0 1,098,553,329

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.

WA funding represents funding contributions paid by Western Australia into its own state pool account, and subsequently paid to LHNs within the state, to the Western Australian health department and/or to other state pool accounts.

Other state/territory funding represents contributions paid to Western Australia by other states and territories for cross-border activity.

Note: The grey shaded areas in these tables reflect cells that are not applicable for a particular 'paid out' column. For example, Commonwealth block funding is only paid to state managed funds and not to 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 – Western Australia, October 2018

This table shows funding paid into the Western Australia state managed fund by the Commonwealth and Western Australia, and payments out of the state managed fund to LHNs and other provider organisations for October 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 27,214,970 27,214,970
State/territory Block funding 33,824,860 30,431,661
Total 61,039,829 56,982,575 664,056 57,646,631

See explanatory notes following table 2b.

Table 2b – State managed fund transactions YTD – Western Australia, October 2018

Following on from table 2a, this table shows year-to-date (YTD) funding paid into the Western Australian state managed fund by the Commonwealth and Western Australia, and YTD payments out of the state managed fund to LHNs and other provider organisations as at October 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 98,680,285 98,680,285
State/territory Block funding 110,491,799 107,098,601
Total 209,172,084 203,122,662 2,656,224 205,778,886

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 Western Australian 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 – Western Australia, October 2018

This table shows NHR funding and payments by service category on both a monthly and year-to-date (YTD) basis for Western Australia for October 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 294,947,859 294,947,859 589,689,766 589,689,766
Admitted mental health 23,490,447 23,490,447 91,198,039 91,198,039
Sub-acute 29,512,023 29,512,023 55,243,654 55,243,654
Emergency department 59,498,999 59,498,999 117,483,741 117,483,741
Non-admitted 60,546,835 60,546,835 132,537,934 132,537,934
Total ABF (Pool) 467,996,163 467,996,163 986,153,135 986,153,135
Block
Small rural hospitals 24,727,404 24,727,404 65,936,213 65,936,213
Teaching, training & research 11,191,959 11,191,959 55,099,559 55,099,559
Non-admitted mental health 21,265,155 21,265,155 82,894,664 82,894,664
Other non-admitted services 3,855,311 462,113 5,241,648 1,848,450
Total Block (SMF) 61,039,829 57,646,631 209,172,084 205,778,886
Other
Public health funding 3,073,694 3,073,694 13,719,909 13,719,909
Overdeposit 0 0 0 0
Cross-border 0 0 0 0
Interest 8 0 32 0
Total Other (Pool) 3,073,702 3,073,694 13,719,941 13,719,909
Grand Total 532,109,695 528,716,489 1,209,045,160 1,205,651,930

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 – Western Australia, October 2018

This table shows NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Western Australia during October 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)
($) ($) ($)
Child and Adolescent Health Service 59,081,162 1,235,651 60,316,812
East Metropolitan Health Service 83,246,709 7,681,173 90,927,882
North Metropolitan Health Service 149,319,257 10,210,261 159,529,518
Notional LHN - Royal Street - WA 4,970,178 0 4,970,178
South Metropolitan Health Service 94,331,052 6,103,741 100,434,793
WA Country Health Service 77,047,806 31,751,750 108,799,555
Total 467,996,163 56,982,575 524,978,739

See explanatory notes below table 4b.

Table 4b – NHR contributions by local hospital network YTD – Western Australia, October 2018

This table shows YTD NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Western Australia as at October 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)
($) ($) ($)
Child and Adolescent Health Service 91,227,225 4,942,602 96,169,827
East Metropolitan Health Service 199,694,386 30,724,691 230,419,077
North Metropolitan Health Service 302,970,827 55,841,044 358,811,871
Notional LHN - Royal Street - WA 14,244,825 0 14,244,825
South Metropolitan Health Service 225,591,376 24,414,964 250,006,341
WA Country Health Service 152,424,496 87,199,360 239,623,856
Total 986,153,135 203,122,662 1,189,275,797

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 – Western Australia, October 2018

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

Local hospital network (LHN) Estimated NWAU delivered in current month Estimated NWAU delivered YTD Estimated annual NWAU 2018-19
Child and Adolescent Health Service 4,528 18,997 54,773
East Metropolitan Health Service 16,603 67,568 196,235
North Metropolitan Health Service 21,361 86,546 254,726
Notional LHN - Royal Street - WA 1,314 5,420 15,909
South Metropolitan Health Service 19,654 79,143 230,989
WA Country Health Service 11,185 45,649 132,908
Total 74,647 303,323 885,540

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.