Basis for National Health Reform payments – Tasmania 2018-19

The basis used to determine NHR payments to LHNs in Tasmania was advised by the Tasmanian Department of Health and Human Services to be as follows:

NHR payments in Tasmania are based upon the activity outlined in the annual service agreement between the Minister for Health and the Tasmanian Health Service (THS).

The service agreement is informed by the Statement of Purchaser Intent (SOPI) and includes:

• a schedule of services to be provided by or on behalf of the THS and the funding to be provided in relation to the provision of those services;
• performance standards, performance targets and performance measures for the THS, and
• standards of patient care and service delivery.

Acute admitted and sub and non-acute service activity volumes are modelled based on age adjusted, population growth and other known factors using historical activity data. Emergency Department and outpatient service volumes are modelled based on agreed growth rates and other known historical data factors.

To provide consistency in methodology and consistency with the National Health Reform Agreement (the Agreement), the 2018-19 Tasmanian Funding Model has adopted the National Weighted Activity Unit (NWAU) as the currency for Activity-Based Funding, with the applicable version being NWAU18, and National Efficient Cost (NEC18), with some modifications in relation to small regional and remote hospitals, stand - alone hospitals providing specialist Mental Health services (admitted and non-admitted), and teaching, training and research.

The 2018-19 Tasmanian Funding Model also provides funding via operational and block grants to the THS covering services provided and activities undertaken that are not within scope for ABF.